CRYPTOCURRENCY AND

BLOCKCHAIN TECHNOLOGY

INTRODUCTION
Lets, talk about the cave man era when they use the barter system to exchange the
goods and services & it was a old method of exchange but barter system lost its
impact when few flaws came like we cannot divided &subdivide all the goods and
services, there is no common measure of values for an example we can say that we
cannot measure an orange with a cow, goods cannot be transported easily like
modern currency fits to your pocket its impossible in barter system.

EVOLUTION OF MONEY
In accordance to the time the money got evaluated from barter system to gold then
metal coins after that the paper currency which we are using now days and then
came the card payment methods and digital payment for eg; phone pay, google
pay, pay pal and so on. with this the modern era of currency came and we all are in
use of this modern payment ways. but have we ever thought of that who is
regulating all this modern currency or paper currency yes, its being authorized by a
central body that is bank or the government.what ever spending we are doing we
are being centralized by the government.
And yes it has many disadvantages also like technical issues at the bank for eg:
their system couldn’t have been down, the machine would have not been working
properly its means there is central point of failure which is the bank. the user
accounts could have gotten hacked for eg: identity theft and so on, or the transfer
limits the of the respective account were exceeded.
This is why the future of currency lies with cryptocurrency so lets see what’s that:
CRYPTOCURRENCY
A cryptocurrency is digital or virtual currency that is meant to be a medium of
exchange. It is quit similar to the real world currency just that it doesn’t have any
physical embodiment. it is a digital currency that can be used to buy goods and
services, but uses an online ledger with strong cryptography to secure online
transactions.
As there are many types of cryptocurrency for eg: bitcoin. Bitcoin cash, Litecoin,
Ethereum, ripple, Steller and many more.as of 2018 there were more than 1600
cryptocurrencies were available and new cryptocurrency crops up every single day,
considering how much growth they were having at the moment there’s a good
chances of plenty more to come in upcoming years.
SOME OF THE FEAUTRES OF CRYPTOCURRENCY
 You can easily verify the transfer of funds
 They operate in decentralized manner
 No transaction cost
 24/7 access to the money
 Its only takes a matter of minute or second to transfer the money

Lets make it more simple to understand :

Jack, sam & phi were three school going kids, sam gave 30 rupees each to both
jack and phi to buy biscuit .so to keep an record that he gave them 30 rupees, phi
decided that they should write it in piece of paper that the amount of money which
they will return to sam and keep each one with themselves.so the transactions
which was done here between the three children was done without any third party.
and in this cryptocurrency also works in decentralized system
BITCOIN
Bitcoin is a decentralized digital currency, without a central bank or single
administrator, that can be sent from user to user on the peer-to-peer bitcoin
network without the need for intermediaries. Transactions are verified by network
nodes through cryptography it is a network of computers that maintains
information of all transaction. The cryptocurrency is invented in 2008 by an
unknown person or group of people using the name Satoshi Nakamoto, the
currency began to use in 2009. lets make it more simple
Example
The way sam, phi and jack kept all the copy of of the transaction in the same way
these computers also keep the copy of every transaction. but what exactly these
computer does, lets take another example of a classroom the teacher give the whole
class a difficult problem to solve, the student who correctly answer first gets a
reward.in that way only the transaction of bitcoin get shared to every computers.
the computer who solve the problem first gets a bitcoin as a reward.in this a new
bitcoin is being generated.
So the process of generating new bitcoin is called mining/bitcoin mining and these
computers are called miners. It is the process by which bitcoins are released into
circulation. Generally, mining requires the solving of computationally difficult
puzzles in order to discover a new block, which is added to the blockchain.so by
this the blockchain technology is famous in the world because of cryptocurrency.

These computers are called miners

BLOCKCHAIN
A specific data base, it allows bitcoin and other cryptocurrencies to operate without
the need for a central authority.it reduces the risk but also eliminates many of
processing and transaction fee. a beneficiary can be connected to the funds peer-
to-peer.
It really solves many practical problem now days with the help of block chain a
beneficiary can be connected to funds peer to peer like there will no third party
involvement.
So lets see how this block chain works
example
an accountant approves a page of transaction and sings at the bottom of the page
to work done in that way these computers also add a signature at the bottom that is
proof of work. In this way a many numerous no. of blocks are being created.
CONCLUSION
 We can use cryptocurrency as mode of cash or as an asset just like we invest
in gold.
 Many hotels in foreign countries also accepts payments in bitcoins and other
cryptocurrencies.
 But this can also be used for many illegal activities because its difficult to
track.