Ever wonder if there is an easier way to complete transactions without having to deal with online wallets, banks and third party applications, it is possible with the help of "Block chain".
Imagine if you want to send money to your friends or parents sometimes your transactions may fail, there are many ways a bank transaction could fail it could be due to technical issues at the bank, one of their accounts were hacked or daily transfer limit being exceeded.
To solve these problems the concept of cryptocurency came into existence
What is Block Chain?
cryptocurrencies are a form of digital currency that run on a technology known as Block chain , these currencies don't require a central authority and they are protected by strong and complex encryption algorithms. there are several currencies like Bitcoin, Ethereum, doge coin, polygon etc...
To understand Block Chain lets look at an example
There are four friends say krishna, pavan, revanth and surya. surya needs money he asks his friends to send some money lets assume krishna, pavan and revanth have three bitcoins and surya has five bitcoins, first krishna sends two bitcoins to surya then a record is created in the form of block, the transaction details between them is permanently present in this block, this record also holds the number of bitcoins each of the friends own, so after krishna's transaction surya has seven bitcoins and krishna has one bitcoin
Same way when pavan and revanth sends two bitcoins to surya a new block is created for each of these transactions, these blocks holds the transaction details as well as how many bitcoins krishna, pavan, revanth, surya have in reserve, these blocks are linked to each other as each of them takes reference from the previous one for the number of bitcoins each friend own this chain of records or blocks is called ledger and this ledger is shared among all the friends which acts as a public distributed ledger
In simple terms Block chain is a collection of records linked with each other and protected using cryptography.
1.BITCOIN(BTC):
BTC(bitcoin) is a decentralised cryptocurrency that works on cryptography. it operates with no central authority and it is not controlled by any central banks. it functions on a peer to peer network, and it's decentralised nature allows users to send and receive funds without any intermediary. and Bitcoin stands first position in cryptocurrencies.
Facts about Bitcoin:
1. Bitcoin was founded by man called Satoshi Nakamoto.
2. market cap of bitcoin is 6478716cr
3. All time high price of bitcoin is about 58 lakhs 81 thousand rupees.
prices of bitcoin varies time to time. there are many people who got rich just because of investing in bitcoin.
why is the buy price and sell price is different in bitcoin?
buyers on one side and sellers on another side make the cryptocurrency trading market. when you are buying a coin , someone is selling it to you at a price and when you are selling, someone is buying that coin from you at a price.for all practical purpose the buy price is generally more than selling price.
What is Bitcoin Mining?
As we all know mining means digging something in the ground so that we can sell that material to get money. but here in crypto mining is different it is performed using very fast computers that solves complex problems caused during transaction of crypto currencies.
By mining we can earn crypto currencies without investing money. Bitcoin miners gets bitcoin as reward for solving blocks of verified transactions which are added to the block chain.
for example Doge coin , one of the top currency supported by "ELON MUSK", mainly used to reward people on Twitter and Reddit for sharing quality content.
People like Elon Musk founder of space X , tesla has also invested in crypto currencies , especially in Bitcoin, Ethereum, and dogecoin.
Twitter CEO Jack Dorsey conformed to investors that bitcoin will be huge part of the company's future.
Pro's and Con's of Bitcoin:
Pro's:
1.Bitcoin transactions are completely anonymous. it do not require personal details or any information from sender or receiver
2.Transactions directly takes place between sender and receiver . no third party is involved .
3. Bitcoin has very strong security and it is impossible to cheat or hack the bitcoin payments
4. We can get more money from investing in bitcoin , as bitcoin value and prices goes on increasing.
5. Transaction speed of Bitcoin is very high compared to bank transactions.
Con's:
1. Bitcoin transactions are anonymous so there may be chance of misusing bitcoins by drug dealers and criminals.
2. once payment is initiated, we can not get refunded , if we send bitcoin wrongly to another person we can not get our bitcoin back , unless receiver sends back to you.
3. As I said earlier if we invest in bitcoin there may be a chance of getting more money and chance of loosing money as bitcoin price changes from time to time
Bitcoin is only a peer to peer electronic cash system , if we want to do transactions online we can use Bitcoin.
Think about current internet world what we do , we create apps, websites , so all these applications are running on internet which is centralized(controlled by many people), if you want to make it decentralized we need a network which can run applications which are decentralized, To fulfill this problem "ETHEREUM" was introduced.
2. ETHEREUM(ETH):
Vitalik Buterin is the inventor of Ethereum in 2013, in Ethereum there is a concept called EVM(Ethereum Virtual Machine). to run any application or any software in java you need JVM(java virtual machine) same way in Ethereum world if you want to write a software and run them on Ethereum network you need EVM.
Ethereum is mode for decentralized applications. Ethereum is not a cryptocurrency it's a platform, if you want this decentralized applications we do need cryptocurrency there. that is ETHER .
Ethereum is a open software platform so we can build our own application on Ethereum.
Ethereum ranks number two in crypto markets.with Market cap of 2817733cr.
Pro's and Con's of Ethereum:
pro's:
1. corporations like microsoft , IBM ,amazon have already recognized that block chain is powerful
2. Ether will always be used for coding on Ethereum's platform. today we can notice that most of the projects are using Ethereum platform
3. when it comes to security there haven't been any failure in Ethereum platform, it;s cryptography has been very powerful.
con's:
1.Ethereum lacks the documentation needed to help people to become Ethereum Developers.
2. Ether's success relies only on Ethereum ., in future we might see other block chain projects with similar features replacing the current benifits offered by Ethereum.
3. If in the future , a mistake found, reversing it might not be an option and rewriting the code completely might be the only possibility.
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