One of the most hot topic of this modern era is Cryptocurrency and Blockchain Technology. But in most of the articles you may find it messy and too hard to understand. So I am here explaining you about the cryptocurrency and Blockchain technology in simplified way. So lets Dive into it,
What Is Cryptocurrency
A cryptocurrency is a virtual or digital currency secured by the process of Cryptography. Almost every cryptocurrency are decentralized and operates on Blockchain technology. Bitcoin is the first most cryptocurrency of the world and after the years passed many come into existent.
Bitcoin – The 1st Cryptocurrency
Bitcoin is the 1st cryptocurrency based on blockchain technology and still remain the most popular and most expensive. Bitcoin was discovered in 2009 by an Individual or group (Still not clarified) named Satoshi Nakamoto. Later then many cryptocurrencies were developed some of the currency were fork / Clone of the Bitcoin and Some were built from scratch.
What is Blockchain
Blockchain is a technology which was developed to make the Cryptocurrencies Decentralized, that means there is no control of the government over it and this is why almost not a single country accepts cryptocurrencies in mean of Legal Transaction.
Blockchain is a vast network of computer which keeps the record of every transaction of the cryptocurrencies. I simple words think of a scenario where a group of 4 friends spend money on their food and one of them keeps the record that who has given how much and in the last of the month they calculate the whole expense and distribute accordingly. But in this case the person who is writing down the entries can make false entries and non of the three will notice. So if the transaction of the bitcoin was entered in a single entity then it will be easy for hacker to hack and add ass many as Bitcoin they want.
But this is the not case in the Blockchain technology assuming the same scenario but with a little change except a single friend lets assume that all 4 friend keeps the record, then it will be impossible to cheat, This is what we can refer to Blockchain. There are various computers around the globe which are keeping the record of every transaction made and a single transaction is added in the ledger of every computers. So it will be impossible for anyone to hack and change each ledger entry.
The computers which keeps the record or the transaction are setup around the globe established by miners. Every miners contribute to record the transaction of the Cryptocurrency safe. As this blockchain is not controlled by any government so cryptocurrencies are also known as Decentralized Currency.
Advantage and Disadvantage of Cryptocurrencies
Cryptocurrencies makes transfer of the fund easier between the parties without involving any third party. These transfers are secured by the Public & Private Key from the different incentive for the Proof the transfer.
Due to its decentralized nature it is easy to transfer the funds between two illegal bodies. Money laundering and evasion are some of the most common illegal activities carried out through the help of cryptocurrencies.
How Do You Get Cryptocurrency?
Cryptocurrencies are listed on many exchange platform where you can buy different cryptocurrencies. Top exchange platform are Kuber, Coinswitch, Graviex.
Is It Legal To Deal In Cryptocurrencies
While non of the countries has accepted Cryptocurrency as the legal currency Still then Investing in Crypto is legal. You can invest in crypto without the fear of being detained according to law. So you can invest in crypto its 100% safe.
I hope you find this article helpful about Cryptocurrency And Blockchain Explained (Simplified ). If you want to know anything about any query then, please let me know in the comment section I will write a dedicated post about your Query