What is Cryptocurrency?

Before coming to point first we need to understand what Cryptocurrency does exact means? So if we see the word cryptocurrency then we’ll get 2 words first one is Crypto and the other one is Currency. Now the question is what does Crypto means and where did it come from? So Crypto word is taken from word Cryptography which came from the Greek word “kryptos”.Cryptography is a technology through which we can transfer our data from one place to another place very securely, In cryptography actually, we convert our data into unrecognizable and unreadable secret codes this conversion process is also as “Encryption”. If any person or machine wants to read the encrypted data first the encrypted data needs to be converted into readable form and for this, there is requirement of a secret key is also known as “decryption key” and the process of converting encrypted data into readable form using secret key is known as “Decryption”.

Now another word which is currency, Traditionally, this word is most commonly associated with a nation’s money, but in reality, currency is any system of money used as a medium to exchange value. So now as we understood the meaning of crypto and currency and if we combine both of them then we can define cryptocurrency that “A cryptocurrency is a digital asset designed to work as a medium of exchange using cryptography to secure the transactions and to control the creation of additional units of the currency.”

Who invented Cryptocurrency?

In the year 2009 Satoshi Nakamoto, the unknown inventor of Bitcoin, invented the first and still most important cryptocurrency. Satoshi said he developed “A Peer-to-Peer Electronic Cash System”
Peer-to-peer transactions are electronic money transfer made from one person to another without any intermediary, typically referred to as a P2P payment application.

Through Peer-to-peer electronic cash system Satoshi Nakamoto wants that at the time of transaction only sender and receiver involved in that transaction.

What are the main purposes of Cryptocurrency?

The main purpose of Cryptocurrency is:-

1- The First purpose of Cryptocurrency is to create a system where only those people are involved that are using a digital cash system.

2- The second purpose of Cryptocurrency is that it becomes a currency whose value is same in all countries. For example when we visit any another country then first we have to exchange our currency with their currencies so to overcome this problem best way is to use cryptocurrency because the price of cryptocurrency is almost same for all countries. That’s why we can also say that cryptocurrency is “Decentralized Currency”.

3- The third purpose of cryptocurrency is that we can transfer our money from one place to another place in very less time and the transfer fee is also very less.

Note: Here we are not talking about any particular coins like Bitcoin, Ethereum etc we are talking about cryptocurrency.

So these are the important purposes of Cryptocurrency.

Why we need Cryptocurrency?

After knowing all about cryptocurrency if you still have doubts that why you need cryptocurrencies and how it gonna provides us benefits then you should consider points given below:

1-Security at best

As you know that cryptocurrency is a decentralized currency and there is no involvement of any third party or persons in your transactions also it uses the concept of cryptography hence all the transaction of cryptocurrencies are more secured in comparison of any other currency we often use.

2-Your money is always your

Even you know there is always a concern about centralized currencies that someone can always track your assets although the country where you belong from can also put a stop mark on the uses of particular currency as it happen before in the case of 1000 and 500rs notes but in the case of cryptocurrencies even certain government bans you from using cryptocurrencies in their country even in that case you are free to use your money at anywhere else where cryptocurrencies are being used. so your money is always your even you alive or death no one can stop you from using it.
3-Provide wings to your money so it can fly freely

In today’s world it took just some seconds to transfer money from one place to another within a country but what if you have to transfer your funds from one country to another. So, in that case, it might take 2-3 days to complete your transaction and in some cases, you have to follow lots of procedures too. But in the case of cryptocurrencies, you are free to transfer your funds from one place to another whether it is within a country or outside a country.You can transfer your funds within few hours and some cryptocurrencies like ripple allow you to transfer funds within a minutes too and transaction fees for these transfers are also very low in comparison to any other transfer mode. We hope this article helped you learn about cryptocurrencies, its uses, and benefits.