Cryptocurrency 10 years after Bitcoin

Cryptocurrency 10 years after BitcoinThe value of money is controlled by the Central Bank, you can physically see it and hold it and you can exchange it for services and commodities. Even though you can also send and receive it digitally, the fact remains that it is physical currency. Bitcoin, originally meant to be a peer-to-peer electronic cash system to prevent double spending, and not currency per say, was launched in late 2008, early 2009, by its inventor Satoshi Nakamoto, though not his real name. Bitcoin is not controlled by any entity or server, it does not have a physical form so you cannot hold it or see it, but it can be exchanged for goods and services digitally. It is digital currency and it is the world’s first form of cryptocurrency.

The turn of the 21st century brought the new age of digitalizing every aspect you can think of, seeking new ways to become untraceable. Cryptocurrency created just that. An anonymous way to transact business, virtually untraceable in most cases due to its uncrackable code, and secure enough that it may be the new future for money. The blockchain technology used for cryptocurrency transactions is basically a digital ledger which cannot be hacked, has no single point of failure and it is completely transparent. The question is, how is blockchain so secure in a world where hacking is becoming an increasingly popular career choice for most, bringing down entire economies at times?

Blockchain technology uses cryptography keys which creates your digital signature in the form of a private key that identifies with you, allowing you to digitally sign and authorize transactions, as well as a public key which does not give away your identity, only pointing the person you are conducting the transaction with to the address of your wallet where your cryptocurrency is stored, to be used for completing the transaction. Of course, if anyone has access to both your keys, then they can access all your digital assets, so private keys are meant to be kept safely.  Once a transaction is completed, it is added to the digital ledger of the blockchain and includes a digital signature, a public key, a unique ID and a timestamp. The public key is always random and it changes each time you do a transaction, making your identity virtually untraceable.

Transacting currency digitally is becoming progressively popular where persons now pay bills directly from their bank accounts, purchase commodities and transfer funds, all in the digital realm. With cryptocurrency, there is no middle man, that is, the banks. You are responsible for your own assets and you transact business with the person directly, albeit, without knowing who exactly you are transacting with. Nevertheless, blockchain technology would reduce costs and boost efficiency dramatically, and may even be the answer to reducing global poverty. All transactions are recorded and cannot be duplicated or changed since it is broadcasted to every node, thus lowering the rate of cyber-fraud and hacking. A cashless society is emerging and it all started from the Bitcoin invention a decade ago.