What is Cryptocurrency?
A digital currency is the new generation encrypted digital coins in which equations or algorithms are used to regulate the generation of units of currency and verify the transfer of funds through digital platform known as block chain, operating independently of a central bank.
“Decentralized Cryptocurrencies such as BitCoin now provide an outlet for personal wealth that is beyond restriction and confiscation”
A crypto currency is a medium of digital exchange using cryptography/encrypted algorithm to secure the transactions and to control the creation of new digital currency units. Crypto currencies are a subset of alternative currencies, or specifically of digital currencies. BitCoin became the first decentralised crypto currency in 2009. Since then, numerous crypto currencies have been created. Crypto currencies use decentralised control as opposed to centralized electronic money/centralized banking systems. The decentralized control is related to the use of BitCoin’s block chain transaction database in the role of a distributed ledger.
Decentralized cryptocurrency is produced by the entire cryptocurrency system collectively, at a rate which is defined when the system is created and which is publicly known. As opposed to centralized banking and economic systems such as the Federal Reserve System, corporate boards or governments control the supply of currency by printing units of fiat money or demanding additions to digital banking ledgers.
However, companies or governments cannot produce units of cryptocurrency and as such, have not so far provided backing for other firms, banks or corporate entities which hold asset value measured in a decentralized crypto currency. Satoshi Nakamoto created the first technical system upon which decentralized crypto currencies are based and is named as BitCoin.
As of March 2015, hundreds of cryptocurrency specifications exist; most are similar to and derived from the first fully implemented decentralized cryptocurrency, BitCoin.
Within crypto currency systems the safety, integrity and balance of ledgers is maintained by a community of individuals or firms referred to as miners: members of the general public using their computers to help validate and timestamp transactions adding them to the ledger in accordance with a particular timestamping scheme.
The security of crypto currency ledgers is based on the assumption that the majority of miners are honestly trying to maintain the ledger, having financial incentive to do so.
Most cryptocurrencies are designed to gradually decrease production of currency, placing an ultimate cap on the total amount of currency that will ever be in circulation, mimicking precious metals.
Compared with ordinary currencies held by financial institutions or kept as cash on hand, crypto currencies are less susceptible to seizure by law enforcement. Existing crypto currencies are all pseudo-anonymous, though additions such as Zerocoin and its distributed laundry feature have been suggested, which would allow for true anonymity.
In 1998, Wei Dai published a description of “b-money”, an anonymous, distributed electronic cash system. Shortly thereafter, Nick Szabo created “Bit Gold”. Like bitcoin and other cryptocurrencies that would follow it, Bit Gold was an electronic currency system which required users to complete a proof of work function with solutions being cryptographically put together and published.
The first decentralized cryptocurrency, bitcoin, was created in 2009 by pseudonymous developer Satoshi Nakamoto. It used SHA-256, a cryptographic hash function, as its proof-of-work scheme. In April 2011, Namecoin was created as an attempt at forming a decentralized DNS, which would make internet censorship very difficult. Soon after, in October 2011, Litecoin was released. It was the first successful cryptocurrency to use scrypt as its hash function instead of SHA-256. Another notable cryptocurrency, Peercoin was the first to use a proof-of-work/proof-of-stake hybrid.
Many other cryptocurrencies have been created though few have been successful, as they have brought little in the way of technical innovation. On 6 August 2014, the UK announced its Treasury had been commissioned to do a study of cryptocurrencies, and what role, if any, they can play in the UK economy. The study was also to report on whether regulation should be considered.
Starting 2014, a so-called 2nd generation of cryptocurrencies appeared, like Monero, Ethereum and Nxt. They have advanced functionalities like stealth addresses, smart contracts, side chains or assets.
Now the new generation of life style crypto currency has emerged to dominate the digital world, a far better encryption method that are far superior to the for runners like BitCoin, that are almost hack proof and are introduced through a live network of common people, traders and financial agencies all over the world. The revolutionary digital currencies is non other than the one promoted by the renowned economist, author, writer, legal attorney,and industrialist Dr. Ruja Ignatova. The stand alone name of the coin is OneCoin.