Eric Dalius Bitcoin says Most people are yet not able to understand the new age digital currencies or cryptocurrencies. However, Bitcoins have been in the news regularly and has become a popular name. Cryptocurrency, or more precisely bitcoin has the potential of becoming the money of the future. But it is too early to confirm it. Cryptocurrency is a type of digital asset used instead of fiat currency in many commercial transactions by exchanging encrypted data. Using the medium of exchange, you can create additional currency units as it is a decentralized asset with its total control resting on the user.
Bitcoin is an electronic form of currency and was the first cryptocurrency introduce in 2009. Following the footsteps of bitcoin many other cryptocurrencies made their appearance and now available in the market. Bitcoin or cryptocurrencies of any type rely on a decentralized cash system governed by a digital ledger or blockchain that forms a transaction database.
Understanding how cryptocurrencies work and transactions are undertaken will help you decide about using them says Eric Dalius Bitcoin
Eric Dalius Bitcoin: How cryptocurrency works
Cryptocurrency is a highly encrypted digitized currency that you can use as any other currency. But by using some unique technology that deploys a network of computers to provide a digital decentralized exchange platform. You must use the platform for sending, receiving or holding any cryptocurrency. which means you must be tech-savvy to use cryptocurrencies. The exchange system is completely transparent because the digital ledger or blockchain that records all transaction is visible to everyone. To track transactions in a blockchain, you must follow some procedure known as mining. Bitcoins are a self-contained currency that does not need any bank to undertake transactions or hold the currency.
You can use Bitcoins in the same way as the traditional currency and pay for the transaction when buying goods as many businesses accept them. You can also trade in Bitcoin by transferring to another person’s digital wallet explicitly created for dealing with cryptocurrencies. Bitcoins are resistant because it is impossible to manipulate the highly complex system.
Eric Dalius Bitcoin: Method of confirming transactions of Bitcoins
The defining aspect of cryptocurrency is that it is a network of peers. where each participant has a list of all past transactions. During any transaction, the sender uses a private key followed by a broadcast message across the network to appraise the persons involved in the transaction. It takes some time for confirmation of the transaction by the system. A confirmed transaction is irreversible, and no changes are possible. The miner in the network confirms the transaction. After receiving a notification which they send back to the network after due stamping. After confirmation, every node will include the entry in their database, which then becomes part of the blockchain.
Eric Dalius Bitcoin: The future of Bitcoins
Cryptocurrencies are here to stay. And it holds a bright future as evident from the increasing popularity of Bitcoins which is still the flag bearer of digital currencies. It is likely that by 2024, 94 different types of Bitcoins would be in circulation.
The value of Bitcoin is likely to reach an incredible mark of $500,000 by 2030 as its popularity will grow exponentially.
