Introduction

Greetings, fellow steemians!
I'm excited to be a part of this week steemit engagement challenge "How Cryptocurrency has Shaped the Financial Realm. What is Its Future?** So let's begin.

It's no longer a secret that the world is moving toward decentralization; cryptocurrencies are already an accepted part of our daily lives. Cryptocurrencies are now used by various institutions, and several countries are seeking to include them into their financial institutions. For the reasons stated above, it is necessary to comprehend what cryptocurrency is all about and is Its Future.

• Brief Overview of Cryptocurrency.
  

The word crypto comes from the Greek word "kryptos," which means "hidden," while currency refers to anything that can be used as a universally acknowledged medium of exchange for goods and services.
Cryptocurrency is a digital, virtual, or electronic currency that may be used for transactions and payment of goods and services in the same way that traditional currencies can. Unlike traditional currency, which is managed by a centralized body, cryptocurrency is maintained or monitored by a decentralized system employing cryptography.

Cryptocurrency is based on the blockchain, a decentralized digital ledger distribution mechanism. On the Blockchain, cryptocurrencies are handled by a peer-to-peer network of computers. Bitcoin is the first cryptocurrency in the world's history.

First Cryptocurrency which is Bitcoin was created in 2009 by Satoshi Nakamoto, with the goal of allowing users to transact in seconds without relying on anyone. It was created to save time, energy, and stress.

Today, there are thousands of cryptocurrency assets, with bitcoin, the first cryptocurrency ever produced, leading the pack and serving as a key market indicator. Altcoins are a term used to describe cryptocurrencies such as bitcoin, ethereum, and others. On the blockchain, every crypto transaction is given a unique identification number called a Hash.

• Draw a comparison between cryptocurrency and conventional currencies.

Cryptocurrency has unique features that set it apart from conventional currencies. They are as follows:

Decentralization:

Because cryptocurrency is a decentralized system, it is not managed or controlled by any financial institutions or authorities. This is in contrast to conventional currencies, which is centralized and administered by financial organizations or institution.

Security:

Cryptographic codes are used to maintain or monitor the blockchain network, providing first-class security on the blockchain. It has never been hacked in the history of Blockchains. Cryptocurrency also assures that the majority of our personal information is within our control and that no one else has access to it unlike conventional currency where all your financial activities can be monitored or accessed at any point in time..

Usability:

Cryptocurrencies are quite simple to use and obtain. You can use cryptocurrency to make transactions at any moment unlike conventional currencies where you need to go the banks before you can make use of the currencies or transact with the currencies.

Demand:

Cryptocurrency is a commodity in a market system that is influenced by market forces such as supply and demand; as demand rises, so does the price.

Transferability:

Once the rules and conditions are met, cryptocurrency can be transferred from one person to another. It can be moved from one location to another once stored in e-wallets, phones, tablets, or laptops. Without anyone knowing, you can hold more than 1000BTC in your wallet unlike conventional currencies where you series of processes before transaction can be made most times you will have to visit the banks.

Explain the distinctive innovations of cryptocurrency and its downsides.

Cryptocurrencies have numerous innovations but I will discuss few:

• Blockchain technology:
  Blockchain technology is the fundamental concept of cryptocurrencies and it has proven to be extremely important in crypto space . Blockchain is the act of creating a chain of block. Blocks are a long-term storage device that stores data messages or information. Blocks chain is more of a linking or chaining together of the blocks. The idea behind a block is that each block has been given a set size, and when the block is filled, it automatically closes and joins with the preceding blocks.

• Transaction Rate:
  Using digital devices like smartphone and computer, cryptocurrency transactions are fast and easy with use of user address to send cryptocurrency from one wallet to another.

• Acceptability :
  Cryptocurrencies is becoming more extensively accepted and recognized as payment mechanisms by so many organization for instance few years ago Tesla announced the use of cryptocurrency as payment method.

• Decentralization
  Decentralization is the shifts power from a centralized to a decentralized network, allowing individuals to interact directly without the need for a third party or supervisory bodies. This is the beginning of the change of financial power from government and central bank to a less reliant structure thereby reducing the risks involved with financial transactions.

• Privacy & Security
  Another innovation of cryptocurrency in the banking industry is privacy and security, which ensures that individuals involved in financial transactions remain anonymous and key phrase is mixed with letters and numbers which makes it difficult for individual to memorize it in a glance . This adds to the already high level of security provided by Blockchain technology.

Cryptocurrency Downside

The following are some of the restrictions and drawbacks related with the establishment of cryptocurrencies:

• Fluctuation in Value & Price:
  The rise and fall of crypto currency price has raise to loss of capital and assets in the financial world. The easiest approach to deal with it is to encourage more people to use the currencies, which would increase consumer confidence and reduce the currency's volatility.

• Difficulty in memorizing the key
  The key phrase generated is extremely complex that are impossible to recall by so many user, including the account owner which most times result to loss of account or access to account.

• Transactions cannot be reversed after being approved
  The Blockchain technology architecture fails to recognize conditions of incorrect data usage, like typographical error in the wallet address or transaction amount. Typos or omissions can modify a wallet address and this flaw has lead to loss of funds and assets on the blockchain.

• Fluctuation in Value & Price:
  The easiest approach to deal with it is to encourage more people to use the currencies, which would increase consumer confidence and reduce the currency's volatility.

How do you think major problems with cryptocurrency can be handled? Let this be a response to the downsides highlighted earlier

• In the Case of Irreversible Transactions
  To resolve the problem of irreversible transactions, I think the best way is to validate a sending or receiving address before validating the transaction block, so that if an address is considered invalid or inactive, the transaction can be reversed .

• In the case of difficulty in memorizing the key
  I think users should be allowed to generate the key phrase themselves with the mixture of letter and words and also secret question should be incorporated as a means of account recovery.

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

Yes, I strongly believe in cryptocurrency's vision and future.

For the look of things cryptocurrency's creative development, has signals a transfer of power and sentiment from organization and institution to individuals to manage their funds themselves and also some countries has adopted the use of cryptocurrencies as their legal tender which will eventually spread to other countries .

The use of cryptocurrencies has been been adopted as means of payment in some media network like steemit and other network will eventualy adopt it so as to grow with the trend

In as much as blockchain developers are not sleeping because a lot of innovation is being introduced on daily basis their is need strengthen the security system and something should be done to always keep the market price in place .

Conclusion

In this post I was able to talk about How Cryptocurrency has Shaped the Financial Realm. What is Its Futuret . Since its entrance into the money market, cryptocurrency has grown in popularity, and it will eventually overtake traditional currencies as a means of trade, independent of location or persons involved.

For me, it would be a huge honor to live in a world where Bitcoin entirely dominates financial systems.

Thanks for Reading