What Is Cryptocurrency?

What is cryptocurrency, exactly?                                                                                                                     

Blockchain technology seems to be confusing skeptics and traditionalists facing difficulties with keeping up with new technologies. Similar to large organizations struggling to go agile, traditional investors rarely turn to virtual assets. That is not to be wondered about lightly. The traditional mindset needs to expand to incorporate modern approaches to enable continuous growth opportunities. It may be easier said than done, it turns out, but not wholly impossible.

In any case, what investors big or small do is none of our business. Nowadays, everyone can get instant information online, so why not familiarize yourself with Blockchain and make use of it? For, to be sure, opportunities to cash out are numerous!                                                                             

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Cryptocurrency Definition

 

Attempting a cryptocurrency definition might prove a challenging task. Namely, Bitcoin in Asia is getting bigger by the day, with other regions following suit, albeit somewhat more reluctantly (there are notable exceptions here and there, but nothing massive). If you happen to be located there, you’re in luck indeed. Blockchain conferences Asia 2019 are many, with important decision makers and startups making their appearance (and, more importantly, presentations). To fully benefit from Blockchain — the technology predicted to make a huge disruption in multiple industries, one needs to keep an eye on the developments… and invest in a timely manner!

But, first things first. Let us start by defining cryptocurrencies and defining their advantages.

A cryptocurrency is different from a traditional currency in one aspect only: it is virtual. You can’t touch it or see it, but you can well use it for exchange and payments. Simply put, a cryptocurrency is a digital asset that owes the first part of its name to cryptography that secures and verifies it during transactions.

Unanimously considered to be the greatest benefit of cryptocurrencies is decentralization. It makes cryptocurrency transactions middlemen-free, which is, by the way, one of the main reasons banks are reluctant to incorporate them. When making a transaction, users can do it without the help of any financial institution, thus eliminating potential added costs.

Tip: Unlike fiat currencies, cryptocurrencies are finite. Using the example of Bitcoin, there are 21m BTC.

Cryptocurrency Explained

 

Cryptocurrency explained, in a nutshell: all cryptocurrencies use distributed ledger technology (DLT) to eliminate involvement of third parties. A DLT is a shared database storing transaction information. The DLT used by the majority of cryptocurrencies is the Blockchain technology. It comprises computers communicating among themselves in a P2P network connected via the internet. In order for a transaction to be successful, each computer must agree with other ones about cryptocurrency ownership and actions that have taken place.

Blockchain is a distributed database, with multiple ledger copies being stored on multiple computers. The main components of a blockchain are a distributed network with a shared ledger, private key cryptography and ways of keeping track of the records and transactions performed via the network.

All cryptocurrency transactions are put into a block (hence the name Blockchain), with the network continually re-confirming the Blockchain to stay updated.

Cryptocurrency Transactions

Cryptocurrency transactions are considered safer than traditional ones, due to encryption and verification. The entire process is fairly simple: if you wish to make a payment, you simply need to log in to your wallet and enter the recipient’s address. The rest is up to Blockchain. If proven legitimate, the transaction is added to the Blockchain. This transaction history maintains the integrity of the system. Presently, there are over 500,000 blocks, over 150 gigabytes in size.

Investing in Cryptocurrency  

Investing in cryptocurrency seems like a good idea to many, seeing as Blockchain has yet to make its breakthrough. Unlike the situation 10 years ago when Bitcoin was introduced, nowadays there are numerous cryptocurrencies from which to choose.

Tip: cryptocurrencies other than Bitcoin are called altcoins.

 

Cryptocurrency Types

Listed below, you will find only the most popular cryptocurrencies. For a comprehensive list, keep an eye on our Blockchain podcast and upcoming cryptocurrency events.

  • Bitcoin (BTC)

Starting with the forerunner, BTC is one of the best known cryptocurrencies. It was introduced in 2009 by Satoshi Nakamoto (whose identity remains unknown to this day) and was originally open-source software. BTC uses Blockchain for transparent P2P transactions, which are visible to all users. They are secured within the Blockchain, with Bitcoin owners holding private keys to their transactions.

  • Litecoin (LTC)

LTC was introduced in 2011 as a BTC alternative. Litecoin is also decentralized, open-source software. The main differences between the first two cryptocurrencies are:

  • LTC is considered to generate faster transaction times.
  • LTC has a greater coin limit (84m as opposed to BTC’s 21m).
  • LTC and BTC use different algorithms; LTC uses a scrypt and BTC – SHA-256.
  • Ripple (XRP)

Ripple was introduced in 2012 and has a dual purpose. It is both a cryptocurrency and a digital payment network for financial transactions, the latter offering low-cost money transfers. XRP allows multiple exchanges, including from USD and Bitcoin to gold and EUR. Unlike other cryptocurrencies, XRP connects to banks for transactions and focuses on moving money on a larger scale.

  • Ethereum (ETH)

ETH was introduced in 2015. Like its predecessors, it is an open-source platform using the Blockchain technology. ETH runs the programming code of any decentralized application when tracking transactions, allowing developers to pay for services on the Ethereum network.

  • Bitcoin Cash

Bitcoin Cash is a cryptocurrency with improved BTC features. Notably, it has larger blocks, allowing for faster transactions.

  • Ethereum Classic

Ethereum Classic is a variant of the ETH. It runs smart contracts — applications running on top of a blockchain and the smart contract code verifying that what was agreed did take place and executing payments automatically. Smart contracts don’t have any downtime or third-party interface. ETH provides a value token (“Classic Ether”) used for compensating its users for products or services.

What Is Cryptocurrency, and Is it Safe?

 

What is cryptocurrency and is it safe? The Blockchain technology is often dubbed “trustless,” because its safety relies solely on cryptography. Whether cryptography is secure or not remains to be seen. So far, it hasn’t been cracked, but it hasn’t been mathematically proven either. Still, the fact that decentralization removes third parties and allows for anonymous transactions and that Blockchain is certain to disrupt various industries in the future makes investments in cryptocurrencies a logical choice.

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TOKENOMX

Battle of the Blockchains

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27-28th February, 2019

The Athénée Hotel BKK — THAILAND

Preregistration Mixer on the 26th!

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    26th February: Pre-registration Networking and Cocktails (all ticket holders)

  • Speaker Dinner (VIP Plus ticket holders only)

  • 27th February: Conference Day 1 (all ticket holders)

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  • 28th February: Conference Day 2 (all ticket holders)

  • Official after party (all ticket holders)

CASE STUDY: CHIANG MAI 2018

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