Cryptocurrencies- The Revolution of Digital Payments

Cryptocurrencies- The Revolution of Digital Payments

A Cashless Economy is in its early stages of development in India. After the sudden demonetization in India in the year 2016, a large group of the society started depending upon on virtual payment methods and mobile wallets such as PayTm. Even though the crowd is not much familiar about how the online currency works, its importance is no less. Cryptocurrency is money of the future, it’s a digital asset developed to work as an exchange medium that uses the concept of cryptography to protect the transactions. Digital currencies are formed by the joined effort of software and hardware engineers along with the strategies of business administrators. So in order to learn about how cryptocurrency works one needs profound knowledge in engineering as well finance administrations.

Best Engineering Colleges in India provide Cryptography along with network securities as specialization subjects. Cryptography also known as cryptology is the study which ensures or deals with communications in a secure environment in the presence of adversaries. It is basically information security, which ensures data confidentiality, and non-duplications. Keeping this aspect apart one must have good knowledge in finance, and this knowledge can be gained by doing a PG in MBA specialized in Finance, one can choose a gull time Post Graduate program and one with time constraints can go for Distance education, there are some Best Distance MBA Colleges in India which provide value for money education.

Moving on to Cryptocurrency, the most popular and important cryptocurrency in the market is Bitcoin. Invented by an unknown person or group who calls themselves Satoshi Nakamoto. From its launching in 2009 Bitcoin has gained so much popularity. Even though it was invented as a system to allow direct cash transaction between individuals, the founders had no idea they were creating a crypto currency.

Bitcoin system works without an administrator which means they have a decentralized transaction system where all the transactions takes place directly between the users with the help of cryptography without the involvement of an intermediary. All the transactions are recorded and saved in the database of the public distributed ledger called block chain. All transactions are verified by network nodes. Each node represents a personal computer; all the computers have the same complete copy of all the information stored in the network.

Each user in connection with the block chain network has a secret key and a public key. A user account is cryptographically connected such that identification is likely in only single direction using the private key. The main advantage of Bitcoin is that it won’t be effected by Inflation since the amount of Bitcoin generated is limited to 1 million, but it is prone to deflation. Conventional currencies are valued based on gold and silver i.e. theoretically we get equal amount of gold from the money we give to the bank, but digital currencies don’t work like that. Digital assets and payments will replace the physical money in the not too distant future. Even when Bitcoin is notoriously imminent to threats and scams, it does provide some great opportunity for investments and savings.

This article is sponsored by Getmyuni

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