CRYPTO ACADEMY SEASON 3 BEGINNERS COURSE – HOMEWORK POST TASK 3 FOR @stream4u BY @EXCEPTIONAL20

When I was introduced newly to cryptocurrency via steemit, I did not know about cryptocurrency and how it operates. But now I am better enlightened about it through this lecture by @stream4u.

The word cryptocurrency is derived from the encryption techniques which are used to secure the network. Crypto refers to the various encryption algorithms and cryptographic techniques that safeguard these entries, such as elliptical curve encryption, public-private key pairs, and hashing functions.

Cryptocurrency is a digital virtual currency that is secured by cryptography, which makes it nearly impossible to counterfeit or double spend. They are digital tokens or virtual currencies which do not exist in the physical. They are not generally issued by any Central Authority, rendering them theoretically immune to government interference or manipulation. Where can they be found?

They can be found mostly on a decentralized platform based on a blockchain; which is a technology type of database that stores information.

Cryptocurrency and blockchains are invented to perform the transactions that banks do for an individual. So they were invented for an individual to avoid the use of banks. They do not require any third party to execute and process the transactions.

Although cryptocurrencies are not like the daily cash that we can keep in our physical wallets. It is a digital currency that can be accessed, used, transfer via the internet only from a computer and mobile device. And their network is based on a peer-to-peer network, which means direct end to end and no mediator like a bank as the third party.

Cryptocurrency transactions and their wallet require mainly the public key and private key. A public key is for the account address and the private key use to sign the transaction.

Cryptocurrencies hold the promise of making it easier to transfer funds directly between two parties, without the need for a trusted third party like a bank or credit card company.
The transfer is secured by the use of public keys and private keys and different forms of incentive systems, like proof of work or proof of stake.
Funds transfers are completed with minimal processing fees, allowing users to avoid the steep fees charged by banks and financial institutions.

A users’ wallet or account address, has the public key, while the private key is known only to the owner and used to sign transactions.

Cryptocurrency is once you lost the public key or private key, there is no way to recover, and will lose everything stored in a wallet. Hence, it is most important to save the public key and private key offline from where you can get or retrieve them even if your system crashes.

Cryptocurrency has made an outstanding leap from being an academic concept to virtual reality with the creation of Bitcoin in 2009. Although it has witnessed a rise and fall which left many debating about the future of cryptocurrencies in general.

• For it to be widely used. I foresee a time in the future where cryptocurrency will be widely recognized and used as a legal tender.

And I guess for it to happen, they have to first gain widespread acceptance among consumers.

• It will become part of the mainstream financial system. cryptocurrency will satisfy widely divergent criteria in the future.

• There will be the rise of more cryptocurrency in the future, instead of it fading away.