Steemit Crypto Academy Contest / S2W1 - How Cryptocurrency has Shaped the Financial Realm. What is Its Future? by @maazmoid123

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HOW CRYPTOCURRENCY HAS SHAPED THE FINANCIAL REALM. WHAT IS ITS FUTURE?

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Good day everyone. I hope you all are doing fine in your respective lives. Today is Day 2 of the Steemit Engagement Challenge Season 2, and I am going to make the post on the topic of this week on Steemit Crypto Academy Contest which is on How Cryptocurrency has Shaped the Financial Realm. What is Its Future?.

So let us start with the post.

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Briefly give an overview of cryptocurrency.

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We know that now the word Cryptocurrency is not new, especially for the people working here on the Steemit platform. Cryptocurrency is a virtual or digital currency that is intangible, and it works on the internet.

Cryptography mostly secures cryptocurrencies, which makes them almost impossible to counterfeit. And most cryptocurrencies are made on a decentralized network based on blockchain technology.

That was the most basic definition of Cryptocurrencies. Cryptocurrencies enable people to make transactions from one place to another within seconds, without the interference of any third party like banks. As the banks work on the centralized system, there is a third party involved in it. And we need to verify every time we make a transaction which is a hectic job for many, and this is how Cryptocurrency came into being, which solves this problem.

If we go into a little history, so we know that the first Cryptocurrency ever built was Bitcoin which was built in 2009 by Satoshi Nakamoto, it was a revolutionary step, and now there are more than 5000 cryptocurrencies in the world right now. There is a point to note that many people think that Crypto Currencies are the Payment methods. Instead, they are the digital currencies, and all some of them with their purposes.

Like STEEM is used to reward the writers writing on the STEEMIT Platform, many organizations use Bitcoin to make payments, and Ethereum is used to buy/sell and make gas fees for NFTs.

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Draw a comparison between cryptocurrency and conventional currencies.

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Now we have to compare the cryptocurrencies and the conventional currencies, so the fundamental difference between the cryptocurrencies and conventional currencies is that the conventional currencies are centralized, which means there is some authority controlling them while the Cryptocurrencies are working on a decentralized system.

The conventional currencies are tangible, meaning they are in physical forms, while the Cryptocurrency works virtually only.

Another fundamental difference we see between the conventional currencies and cryptocurrencies is that in the conventional currencies, there are intermediaries involved in it, and there is also an authority that controls the input, output, and the other main things, while in the cryptocurrencies, there are no intermediaries involves in its operations.

The other main difference is security and theft, as you can be robbed anywhere if you have a conventional currency. There are even the cases of the banks being robbed and your real money getting lost, while in the cryptocurrencies, your currencies are saved till you accidentally share your keys with any other party.

There is an unlimited supply of the conventional currencies, while the cryptocurrency supply is limited, which is also a big difference between these two currencies.

The other main difference I would like to talk about is the market volatility, as the cryptocurrency market is seen as a very volatile market compared to the conventional currencies market.

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Explain the distinctive innovations of cryptocurrency and its downsides.

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First, we will talk about the distinctive innovations of Cryptocurrencies and then their downsides. Let's first begin with the distinctive innovations of Cryptocurrency.

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Third-party: One of the distinctive innovations of Cryptocurrency is that there is no third party involved in Cryptocurrency, which increases its scalability compared to conventional currencies.
Downside: as there is no authority involved, it can not be regularized, as nobody can implement rules to protect funds from scams and frauds.

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Fast Transaction: The transaction speed of the cryptocurrencies is fast, as sending tokens from one address to another has been made easy and fast through cryptocurrencies.
Downside: The Downside of the transactions in the cryptocurrencies is that if we have made a transaction, and if it is made at the wrong address, it can not be reversed.

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Cryptography: It is yet another distinctive innovation of Cryptocurrency, which has saved people's accounts or wallets and helped them secure their assets through the encryption method.
Downside: The only Downside in cryptography is complex keys/passwords, which make it impossible to memorize by the users.

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Blockchain Technology: The use of blockchain technology in Cryptocurrency is yet another distinctive innovation, as the transactions made are recorded in the Blockchains and recorded in a public list.
Downside: The only Downside we see in this is the privacy of the people (but there is also technology like dark pools, which is now used by the people who need privacy)

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How do you think major problems with Cryptocurrency can be handled?

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In my country, there is a saying that God made the solutions first before sending any issue/problem in the world. So that means that there is always a solution to every problem.

So the first problem our Downside we know of the crypto market is that it is so volatile, so there should be some regulations that make it a little less volatile like the stock markets and forex. As it will help the people make the right investments, as in this type of market, many people have become zero from being Millionaires.

There should be an option for the people to retrieve the transactions. As we have discussed earlier, right now, if we have made a transaction to the wrong address, our tokens will be lost, so a retrieving option is a must.

The other Downside I discussed is privacy people don't have much privacy in the current blockchain, but the solution to that problem is already there, known as Dark Pools, but many people do not know about it, so there should be some training related to that.

The solutions for the cryptography encryption keys are the hard wallets as the people can now save their assets in the hard wallets, which are also saved, and people do not have to worry about the long alphabetic and numeric numbers.

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Do you believe in the future of Cryptocurrency? State your reasons. Any Recommendations?

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Of course, I think we all who are on this platform believe in the future of Cryptocurrency. The crypto market is, I think, still new, and all the issues and problems we see are the mistakes of the beginning of this technology, and these mistakes will lead us to a brighter future for Cryptocurrency.

In a few years, I will see the revolution of cryptocurrencies, especially in the 3rd world countries. I have noticed that it is still not common in first-world countries, but we see that third-world countries have the highest opted ratio of cryptocurrencies.

It shows that we all have been fed up with the conventional currencies and financial systems. We were waiting for some change to help us change our lives; Cryptocurrency is playing its part very beautifully and bringing the change we all wanted.

I think there are still many gaps left in the crypto world that will be filled up soon, which will bring the whole world to cryptocurrencies.

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That was all from my first post in the Steemit Engagement Challenge, I hope I gave it a good shot. I want to invite my dear friends @virajherath, @hafsasaadat90, and @moneyster to participate in this contest.

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Author: @maazmoid123

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