Advantages of cryptocurrency and examples of powerful blockchains
by Groshan Fabiola I try to cover as many topics as I canPeople are increasingly hearing about
cryptocurrency and its rapid growth during the past year. Virtual coins are a viable
alternative to make investments and actually win money. Like any other
wonderful technologies that are already existent, cryptocurrency appeared in
people’s lives and not everyone is aware of its intricacies and benefits.
Explaining what cryptocurrency means, what their usefulness is in people’s
lives and what predictions people should be aware of is paramount for the large
public. Why? The answer is quite evident – people are reticent to new
technologies when they don’t know much about them. Getting informed and raising
awareness might change the vast majority’s perception. This article is meant to
present the great advantages of cryptocurrency and some examples of powerful
blockchains thriving today.
Bitcoin, Ethereum, and
Litecoin – the rulers
Bitcoin was ruling the cryptocurrency field
a few years ago, but since the blockchain technology is no longer a secret,
many other altcoins started to show on
the market. Creative new applications attracted people more and more and made
them invest into other cryptocurrencies rather than Bitcoin. Even though
Bitcoin remains one of the most powerful digital coins out there, names like
Ethereum or Litecoin are governing the domain as well. Carefully following the Litecoin price chart will get you
convinced in an instant that prices are fluctuating, and investments should be
wisely thought.
In order to understand how the blockchain
underlying technology works, you should know what a decentralized network is. A
decentralized network represents the redistribution of different functions and
processes away from a specific server. This allows using peer-to-peer
communication which means central points of failure are entirely eliminated,
the system is highly reliable and cost-effective. Now, the blockchain is a
subcategory or another type of decentralized network that can make agreements
throw its whole structure, meaning that no central authority is involved.
This is the base functioning of all top
cryptocurrencies at the moment – Bitcoin, Ethereum, Litecoin or other popular
digital coins available at the moment. Cryptocurrency is both similar and
different to conventional money. While normal currency is entirely governed by
central banks, cryptocurrency is governed by – nothing. To make it short,
cryptocurrency is based on mathematics and distributed computing. A huge
difference between conventional money and digital coins would be the fact that
money actually includes international
transfer costs while cryptocurrency doesn’t. A disadvantage
of digital currency would be that no chargebacks are allowed or possible.
Once you pay, you cannot get your digital coin back. In the case of
conventional money, this process is possible. There are both benefits and
drawbacks of these currencies, but you are the one who can decide what to
choose, depending on your own requirements and preferences.
The principal advantages of cryptocurrency
This is a list of the main advantages that
cryptocurrency brings in people’s lives. Resounding names like Ethereum, Bitcoin,
and Litecoin might make you curious, so
read about the
benefits you can take advantage of.
·
Accessible to anyone
Cryptocurrency can be accessed with a
simple connection to the Internet. All you need is a personal computer or a
mobile phone along with a special wallet where you can store your digital
currency. The only thing left to do is follow up charts and find the best
moment to buy or sell. This requires some trading skills, but you can learn
about these along the way.
·
No counterfeit
Cryptocurrencies are virtual coins so there
is no actual physical shape for them. Digital currency cannot be falsified or
counterfeited in any way, meaning that – in this aspect – is much safer than cash
or credit cards that can be easily part of frauds.
·
No identity theft
The same goes with identity. In the world
of cryptocurrency, identities are just numbers. Given the fact that
cryptocurrencies are not ruled by a specific person or institution and you are
not using your actual identity, there is no way that someone can steal it. Yet,
when you hand your credit card to a normal merchant, you basically give them
access to all of your information – your full credit line, your name etc. The
store then pulls a certain amount of money from your account and hands your
credit card back. In the main time, you can be the victim of fraud very easily.
Well, cryptocurrency uses a push
mechanism instead of a pull one, like in the case of credit cards. This push
mechanism makes the holder send the exact amount to the merchant, not vice-versa.
No further information is provided, and your safety is thus granted.
·
Immediate settlements
Another great benefit of cryptocurrency
would be the fact that a settlement is completed on the spot. It is an instant
process that won’t involve any third parties like lawyers or notary. Plus, you
won’t have to worry about payment delays either. Cryptocurrency contracts can
entirely eliminate the complications of normal cash transactions.
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Created on Jan 26th 2018 08:59. Viewed 247 times.