What is Crypto Currency?

In the previous blog we have seen what is web 3 and how is it different from web 1 and web 2 so in this blog let us see what crypto currency is?

Before getting into details let us try to illustrate it with a simple example:

There is a New Year sale going on air that is an online store which is an early bird offer and can be claimed by the first 10 customers with a discount of 60% on their purchase, so after hearing about this offer Jack and John opened the website and started selecting the clothes then after finalizing clothes it was the time for payment John made the payment and availed the offer on the other hand Jack missed out the offer.

Now you might have a question why did I take this example and why Jack was not able to claim the offer?

John used cryptocurrency to make his payment and successfully claimed the offer but Jack tried using the bank to make his payment and unfortunately there was a technical issue and missed out the offer.

Now what is cryptocurrency?

Photo by Michael Förtsch on Unsplash

Crypto Currency is a type of bitcoin which is a digital currency which works as an interface between a computer network which is not dependent on any centralized authority like bank or government to make any transaction. This transactions are done in a blockchain technology with a protected hash preventing it from a third party access.

How does one claim an ownership?

Individual coin ownership are stored in a digital ledger which is a electronic aided system using strong cryptography to secure transactions, to control addition of coins, verify the transfer of coins.

Is there a physical presence of crypto currency?

Photo by Behnam Norouzi on Unsplash

Crypto currency does not exist physically like we have money but they exists as digital tokens, which can bought through various sources called wallets some of them are Meta Mask, MyEther, Ambire, and many more. ‘

If a cryptocurrency is stamped or manufactured prior to issuance or issued by a single insurance company, it is widely considered centralized. Running with decentralized control, cryptocurrencies typically work by sharing records, such as the blockchain, which acts as an open transaction database for cash. Everyday asset classes such as financials, commodities and equities, and the macroeconomic component have modest exposure to cryptocurrency returns.

How safe is it invest in crypto currency?

Crypto currency is a highly volatile asset and one need to be ready to take risk in investing their money into it. It is a high risk high profit or may be loss also so one need to be ready to take anything which will be an output it may be a loss or a profit.

Conclusion:

John after giving explanation to Jack about this then again tried to make a transaction through crypto currency but to his bad luck the offer has expired.

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What is Crypto Currency?
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