5 reasons how digital currency is helpful for human existence?
What is digital currency?
Before diving deep into industry jargon like decentralization, Cryptocurrency, Virtual currency bank, Digital Currency, etc
We must be well versed with the basics of crypto. We all know Bitcoin was the first-ever digital cryptocurrency. There was a person named Satoshi Nakamoto (anonymous) who published the white paper for digital currency. Here, What does White Paper mean? White Paper is a detailed technical document that has all the details about the technology.
But the question remains what is digital currency?
It is neither paper nor a coin but it proves that you own a certain amount on a public ledger which is highly secured. This public ledger is backed up by blockchain. Why Blockchain? Because it is secured and cannot be changed. But what makes this possible? As the word itself suggests Blockchain is a chain of blocks, where each block contains the cryptographic information of the previous block and each block represents a transaction.
What is its need and What problem does it solve?
You might be thinking we were good with the paper and metal representation of the currency. Why is there a need for everything to become technical? Well, it’s not only about the digitization of currency but also about the power and control over the money that has got distributed over the blockchain network.
Earlier, there used to be a central entity Bank where we used to deposit our money. Bank in return pays us interest for keeping our money. But at the end of the day money is with the bank. It can be used in anyways, for instance, it can be invested in startups and high returns can be earned, it can be invested in stocks, it can be lent to some other firms. All these things help banks to make big money. On the other hand, we received pennies. While owning cryptocurrency, only the owner has the right over it giving birth to a decentralized economy. Well, a decentralized economy is somewhere similar to democratic governance.
Why do Blockchain and Crypto coincide with the term decentralized economy?
The answer is simple: it can disrupt the banking system. There is no centralized entity in the Crypto world. People own the money, People manage the money, or People safely conduct their transactions.
Here are some more benefits of digital currency :
No chance of Fraud :
All of the confirmed transactions are secured in an encrypted public ledger. All identities of cryptocurrency owners are encrypted. This is done to ensure the legitimacy of records in the blockchain. Since the currency is decentralized, people own it. It is not owned by a bank or government.
Identity theft :
Identity theft just can’t happen in Blockchain. As these are super secured. The ledger ensures that all transactions between “digital wallets” calculate an accurate balance. Transactions are cross-checked to make sure that the coins used are owned by the one who is spending them. The public ledger is also known as a “transaction blockchain”. The transaction over the blockchain is backed up by encryption and smart contracts that make the entity virtually unhackable fraud-proof.
Blockchain the soul of Cryptocurrency. You don’t need a lot of documents and verification to use digital currency. Internet connection and Smartphone is more than enough to make you the owner of your bank making payments.
Ease of Accessibility:
It can be accessed by anyone which is very helpful for humans.
There are over two billion people around the world who don’t have the right to use the traditional exchange system that is banks. They don’t have any other option other than the cryptocurrency market
Cryptocurrency is a Deflationary asset:
This one is something interesting. I bet you don’t know about it. Cryptocurrencies have a limited supply. This is what makes them deflationary assets, which means the purchasing power increases over a while. Let me explain to you the term purchasing power — suppose you can buy an iPhone 1 Bitcoin but after 4 to 5 years you can buy 2 iPhones from the same 1 Bitcoin, this means the purchasing power of Bitcoin has increased. All the cryptocurrency has an algorithm associated with them that puts a limit on their total supply. This is also one of the reasons for the increase in the value of a digital currency.
There are many cryptocurrency in the market.
Here are the list of top digital currency:
In a room full of cryptocurrencies, bitcoin is the senior-most citizen. Although bitcoin too goes through its turbulence, dip is the best time to get into it. Bitcoin has a market cap of over $882 Billion. Apart from distributed ledger on the blockchain network, every transaction on BTC should be also verified by solving cryptographic puzzles. Cryptographic puzzles are a procedure called proof of work. This is how BTC is kept secure.
There are a lot of stories about bitcoin people losing money and people making fortunes.
You may think of Litecoin as a son of Bitcoin. Sorry for my PJ. But it is more or less like Bitcoin, the only difference is the time when it was launched. It was launched in 2011 whereas BTC was launched in 2009. Therefore it is also called “silver to Bitcoin’s gold”.
It is not controlled by any central authority. It is based on an open-source global payment network and uses scrypt as Proof of Work. This Proof of work can be decoded with help of CPUs. The rate of transactional block generation is faster in Bitcoin and thus transaction confirmation time is low.
Well, the son has got some better features, doesn’t it?
Litecoin is the favorite of developers. Although the number of merchants taking interest in the currency has increased too. Litecoins has a market cap of over 84 million Litecoins. This means Litecoins can be mined or generated till it has reached 84 million.
Talking about progress in Litecoin then let me tell you it is tremendous. Litecoin is working on the following things :
Application for smart contract
Privacy that includes confidential transaction
Implementation of the lightning network protocol
We can surely see a bright future for Litecoin as a classic and reliable altcoin.
Emocoin is the true democratization of Digital Currency which aims to empower individuals to participate in Decentralized Economy enabling people & businesses to conduct trustless, anonymous & secure transactions globally built on the cutting edge blockchain, cryptography and peer to peer technology . Emocoin ecosystem allows users to have access to countless products & services that an individual requires on daily lives are listed below :
Crypto Wallets, Currency Swap, Web Browser, Exchange, Staking, Loans etc
Emocoin will empower communities to participate in the decentralized economies and strengthen relationships amongst communities. All transactions carried out in all the portfolios are through Emocion, directly or indirectly.There is continuous innovation and development to strengthen this link and it will help us to connect with our users and grow the ecosystem.
Emocoin also has its own EMO Bank that aims to ‘bridge the gap’ between those with access to finance & those without, eliminating borders, intermediaries and prejudices. The creation of Emocoin enables those with mobile internet access to reach a new medium of finance, improve their access to loans, earning money through staking, fast and affordable transfers along with multi use crypto debit card system.
No one would believe Dogecoin is a serious cryptocurrency looking at its representation. It is represented by a meme coin, SHIBA INU. The price of Dogecoin skyrocketed in 2021. There are big names associated with Dogecoin. Companies like Dallas Mavericks, Kronos, and the one and only SpaceX (an American aerospace manufacturer owned by Elon Musk) have accepted Dogecoin as a form of payment.
In 2013, two software engineers, Billy Markus and Jackson Palmer created Dogecoin. There was no specific motive behind the creation of Dogecoin. They said they did it just for fun.
The highest price of Doge to date is 68 cents which is pretty impressive. Dogecoin has a market cap of over $18 Billion. It stands as the 11th largest cryptocurrency that had a value of around 12.5 cents in December 2021.
Binance Coin :
Binance coin — hmm, the interesting name isn’t it? Sounds like Beyonce. Okay sorry, I can’t get over my obsession with that lady. Let’s come to the point.
Binance Coin is associated with Binance Exchange. So there is this exchange Binance Exchange that accepts Binance coin as its payment currency for the fees associated with trading. The highest price of Binance to date is $479 which is pretty impressive. Binance coin has a market cap of over $60 Billion. It stands as the 3rd largest cryptocurrency that had value at around $365 in December 2021.
Also, the discount is given to the one who uses Binance coin for trading in Binane Exchange.
Binance Exchange was founded by Changpeng Zhao and is one of the widest exchanges in the world. Initially, the Binance coin was an ERC-20 token that was over Ethereum Blockchain Network.
I hope now you guys are fully equipped to learn more about Digital currency and keep yourself at par with the trends around the world.