[CRYPTO CURRENCY ] - Steemit Crypto Academy Season 5- Homework Post for Task 5.
(1) What Is Cryptocurrency and How You Would Like To See Cryptocurrency In The Future?
Good day my nice steemians.
I am happy to be a locality of this agitated lesson that deals on Public chains and cryptocurrencies and with reference to this, I want to specifically give my understanding on this lesson through my homework below.
The failure of ancient exchanges/currencies due to, economical and quicker means of transactions, we tend to say led to the conception of cryptocurrencies.
We might see here that, within the ancient currency exchanges, their values are discovered from endorsements and that they have, the backing of the state's government which keeps their thrive and fall to a specific supply
Cryptocurrencies also on the opposite hand may be merely seen, as digital or online currencies that may be used for the exchange of products And services and well secured by an art referred to as cryptography that makes it not possible to duplicate and spend double on a network.
A major issue, to contemplate is its secure standing because the word crypto may be drawn from cryptography that could be a feature, securing the network.
We can also be justifying them to be virtual assets that derive their supply from a network that is covered by multiple computer systems
How cryptocurrencies work :
Cryptocurrencies operate, through an easy technology referred to as Blockchains. Blockchains are decentralized systems, that are shared or distributed on such a large amount of computers that account for, and regulate transactions together with departure the network secure and economical.
The vase nature of cryptocurrencies have over 14,000 in circulation and even a lot of them are still funded through totally different systems e.g. ICOs etc
There are some features of cryptocurrencies which include :
Their nature permits for the employment of a decentralized network in other words there's no central network regulating money transactions which means that there are no intermediaries like ancient currencies.
They use cryptography for the securing of the currency network which helps to avoid duplication /counterfeit of the currencies
Transactions created with the currencies are hidden or anonymous and unlinkable in contrast to ancient currencies that would be copied once transactions are created with them however on these digital currencies, transactions remain anonymous
Merits of Crypto currencies :
Easier and stress-free transactions: With the employment of cryptocurrencies, traditional commissions and alternative incessant fees /charges to be settled, are removed herewith creating it easier for users to victimisation cryptocurrencies and eliminating intermediaries within the method and leaving the parties of the group with applicable data of themselves
Transfer of enormous assets: Assets that are cumbersome and should be ambiguous in physical nature may be transferred easier with the assistance of cryptocurrencies that use seamless means and is finished with ease.
Cryptocurrencies move for transactions that need to be left anonymous and confidential to be done in contrast to ancient currencies where each transaction can be simply traced by the banks
Reduced transactions fees, may be one of the best blessings of the cryptocurrency systems since the removal of third parties, cut back the fees concerned in transactions and occasionally miners get their rewards from the crypto network concerned.
Security cannot be overlooked, as it's another major pillar of cryptocurrencies since they use cryptography to form positive currencies are safe on the network and avoid counterfeiting of the currencies or perhaps double outlay them
Disadvantages of Crypto currencies :
Cryptocurrencies may be termed, unsure stores of assets since they're not stable in worth and then might considerably be changes in the worth of assets after they are used for transactions before, when or within the course of transactions.
The risk of losing your online assets or losing your currencies since they may be deleted from exchanges anytime. There may be website hacks that would lead to the vanish of assets within somebody's asset.
The existence of cryptocurrencies' anonymous nature permits for committal of crimes within the society since once scams or hacks square measure finished cryptocurrency, transactions square measure unlinkable or untraceable, departure the thieves pleased and creating it easier for them in contrast to ancient currencies wherever they will be copied
These cryptocurrencies are typically liable and at risk of cyberattacks since hackers tend to use media accounts to trick users to relinquish away their wallet logins through hack links or perhaps alternative patterns which may cause permanent loss of assets
B.) How I will love to see crypto currency in the future :
The introduction of cryptocurrencies have a lot of merits than demerits to my reasoning since the digitalizing and a lot of securing of currencies would do a lot of sense to the money sector of the planet and build a higher business.
Regarding this, there are many aspects of cryptocurrencies, that ought to be advanced and created higher since vulnerabilities of fine developments are inevitable occasionally.
Firstly I will say that within the future, there ought to be a regulative body, meant for the check and equalization of currencies before they're listed for purchase. this idea too, I will like to have many steps, to compensate digital holders just in case of failures of a security breach as users mustn't be victims of a company's security breach or carelessness
Secondly, the safety of cryptocurrency transactions ought to be extended even to cases of scams that is there may be AN automatic detector, in cases of crypto fraud which might facilitate implicate fraudsters World Health Organization build away with user funds.
Finally, I will like to see cryptocurrencies legalized, as world exchanges and stabilised, to be a positive and stable store of assets. herewith enabling the typical man, build use of them since there are many edges to fancy from the crypto world.
Thank you all for reading my post
Best regards
@sapwood