what is digital currency?How it works?History of currency and future of digital currency....

 

These days  crypto currencies are something that everyone wants to talk about but no one really knows how they work so today I'm going to fix that Since man,world currency has been a very essential part of our lives.

In the caveman era,they use the barter system. The barter system means exchanging of goods and services among each other. for example: a caveman is exchanging seven mangoes and getting bananas in return. The barter system fell out of use now because it had some glaring flaws. These flaws include having people's requirements coincide for example: you have five mangoes and your friend has five bananas. you want some of his bananas now until and unless your friend has a requirement for the mangoes that you own he'll not be ready to make an exchange for it. There's no common measure of value. that's why there's a problem when you have to decide how many mangoes you are ready to trade for one banana or a mango.All codes can't be divided or subdivided. for example you can divide a live animal into different smaller units the goods cannot be
transported easily.

But modern currency occurs in your purse or your mobile phone the goods that you own cannot be taken with you everywhere.Currency went through a few iterations in 110 BC.An official currency was minted in thousand 250 AD.Gold plated Florence was introduced and this was used across Europe and from 1680 to 1980. Paper currency acquired worldwide reputation and was used in the whole world. In this way modern currency  came into existence. Modern currency included paper currency, coins,credit cards and digital wallets for example; Apple pay,Amazon pay pay,Pay Pal and so on.All of this was controlled by banks and governments.
Imagine the scenario of doing an online transaction  you're thanking your friend paying for your lunch, you are saying that you're sending the money to their account.May be this transaction takes place successfully but there are several ways where this could have gone wrong they could have been a technical issue at the bank for example the systems or machines weren't working properly,there's a central point of failure, the users accounts could have gotten hacked,transfer limits for that account were exceeded etc.

This is why the future of currency lies with cryptocurrency.Now  imagine the transaction between two people one of them has the Bitcoin app and there's a notification asking whether they sure they're ready to transfer five bitcoins if 'yes' processing takes place.They will authenticate the users identity, checking whether they have the required balance to make that transaction and other things.After that's done,the payment is transferred and the payment is received. All of this happens quickly in few time. It is as simple as removes all the problems of modern banking.There's no limits to the funds you can transfer.And there is no fear of account hacking or any other failure.

There's more than 1,600 cryptocurrencies available now. There are some popular ones like Bitcoin, litecoin,Ethereum,Bitcoin Cash,cardano etc. A new cryptocurrency crops up every single day.Considering how much growth they're having.There will be many more in upcoming years. so what exactly is cryptocurrency" A cryptocurrency is a digital or virtual currency that is meant to be a mean of exchange." Cryptocurrency is quite similar to real-world currency. It does not have any physical embodiment it also use cryptograph to work the way it does. Some features of cryptocurrency are that there is a restriction to how many devices can exist with Bitcoin,this limit exists at 21 million. After this no extra bitcoins will be produced you could easily confirm the switch of budget.The hashing algorithms that Bitcoin uses makes it very smooth for users to decide whether a transaction is valid or not.They operate independent of a bank or a central authority.They work in a decentralized manner.So what makes cryptocurrency very  special firstly, there's little to no transaction costs.You have 24/7 access to money. you can't just walk up to your bank at 3 a.m morning and say that you want to
withdraw some money.There's no limits on purchases.There's freedom for anyone to use for example; if you are setting up an account in your bank you need to do some amount of paperwork and documentation.But  with cryptocurrencies all of that can be avoided.International transactions are faster.Wire transfers take about half a day to transfer money from one place to another but with cryptocurrencies it will take very few time.

Here  we are focusing on two major crypto currencies: Bitcoin  is a digital currency that is decentralized and works on the blockchain technology it uses a peer-to-peer network to perform transactions and the second one is etherium Network.
The etherium network uses blockchain technology to create an open-deliver  platform for building and deploying decentralized applications.

What's the future of cryptocurrencies?
The whole world is clearly divided and have diferent views about cryptocurrencies on one aspect you have supporters of it like Bill Gates, Al Gore and Richard Branson who say that cryptocurrencies are good than normal currencies.
On the other side, we have people completely against it.People like Warren Buffet, Paul Krugman and Richard Schiller who are both Nobel Prize winners in the field of economics they call it a Ponzi scheme and means for criminal in the future.There's going to be a conflict between regulation and anonymity since several cryptocurrencies have been linked with terrorist attacks.Governments would want to regulate how cryptocurrencies work.on the other hand, the main emphasis of cryptocurrencies is to ensure that their users are kept anonymous by the year 2030.Cryptocurrencies would occupy 25% of national currencies which means the significant chunk of the world would start believing in cryptocurrency as a mode of transaction.It's going to be increasingly accepted by merchants and customers and it will continue to have a volatile nature which means prices will continue to fluctuate like they have been for the last few years.