Amidst all the buzz surrounding cryptocurrencies, while delving into it, one should thoroughly educate himself/herself with the different aspects of the digital currency. One such aspect is the basic characteristics of the cryptocurrencies.
Let’s take a look at the three main characteristics of cryptocurrencies:
Trustlessness: In the case of fiat money, you need to trust a third party to guarantee the value of your money by not debasing it. Cryptocurrency due to its very nature eliminates this need to trust someone by incentivizing every user in the network to not debase the currency and not to commit fraud.
Decentralization: In case of banks and governments because the supply and creation of money are the matter of their sole discretion, users of the currency they control are at their mercy. However, in case of cryptocurrencies no government or central authority is able to influence or control the supply of currency or exert any significant influence over it. Even if the majority of users can approve of certain changes, minorities are free to “fork” away and administer their own version of the currency.
Immutability: If we want to find out how money has been removed from our bank accounts, we can to refer to our transaction history present with the bank. However, doing so implies a few things:
- That we trust the bank and dismiss the anxiety that it doesn’t carry out false transactions and manipulate our money
- That we trust the bank to deliver outgoing transactions to our intended recipients
- That the bank employs sufficient security measures to ensure that other parties can’t make any transactions on our behalf.
When the element of trust and centralization is taken away from the interaction by using technology, there is no longer any need for any party to trust to do this. As a result, records need to be made public amidst the cryptocurrency network.
The cryptographically secure nature of cryptocurrency ensures that while it is not impossible to change the transaction ledger, it is extremely difficult to attempt it as it would require you to bypass the entire network of cryptocurrency users.
Women In Cryptocurrency: Top 8 Women In Cryptocurrency
We have an interesting infographic on Top 8 women in cryptocurrency, this infographic was developed by MrBTC.org. This infographic is about the most popular Crypto women and their contribution to this industry. Check out the following infographic, and let us know your thoughts.