Ever since evolution, we humans have made tremendous advancements in every field we have created and known till today. Over time, humans have realized that they cannot be self-sufficient or totally independent in terms of resources, products and services. Hence, we made a suitable arrangement of exchange of products. Earlier, goods and services used to be traded in exchange of other goods and services, known as the barter system. When loopholes were found in this system, these discrepancies were resolved with the invention of currency. Currency was identified as the common exchange medium for any particular product or jobs and the currency price of the particular commodity or service was fixed on its value. Thus, currency was an easier mode of exchange, but eventually it was realized that different regions or kingdoms had different currencies and values attributed to them. With development, inventions and globalization, currencies were compared on their value offerings and certain prices were fixed for comparing these different currencies pertaining to their regions. Today, trading money has a centralized system and its definition and diversification have vastly transitioned with humankind’s needs and wants.
With the inception of modern technology, internet and its expansion, we have now become global citizens. Online banking has become quite hassle-free, safer and more secured than its primitive form. Recently over a decade ago, digital currency became a new form of global currency with new incentives and perks, and we were introduced to the concept of ‘cryptocurrency’. Cryptocurrency broadly defined is virtual or digital money that takes the form of tokens or coins. This form of digital currency stays on a distributed and decentralized ledger meaning that the crypto in cryptocurrency refers to cryptography which allows for the creation and processing of digital currencies and their transactions across decentralized systems. This provides portability, transparency and is not easily prone to inflation related problems. Cryptocurrencies were initially designed with the motive of being independent from any governmental currency or connect, but their huge popularity has led to governments intervening with rules and regulations on their usage and utility. Yet, the world of cryptocurrencies is rapidly expanding, and new ones are released every other month. A cryptocurrency is digitally handled and owned, and governed by specific protocols and processes. It is an asset based on a network distributed over a large number of computers. This is what helps it stay free from government and centralized systems’ control. The network is secured through encryption techniques. Cryptocurrency works through blockchains, which ensure the integrity of transactional data in the organization. The cryptocurrency system allows for secure transactions online, and this is denominated in terms of virtual tokens represented by ledger entries in the system internally. These entries are kept safe through encryption algorithms and cryptographic methods.
The working system of cryptocurrency is a bit complicated for beginners, but with time, handling and experience, it is hassle-free and easier to handle in the long run. As more and more people turn towards this form of currency, we are headed towards a better world in terms of globalization. With inception of cryptocurrency into numerous sectors, we will be equipped to use it in a more versatile way. As we walk towards an advanced future, cryptocurrency is amalgaming with modern technology and systems to become a ubiquitous phenomenon of tomorrow.