Out of hundreds of cryptocurrencies used around the world, Bitcoin the same thing is happening in crypto curren-
is the most famous. Others are called altcoins; alternatives to bit- cy. As mentioned earlier, Bitcoin uses a peer
coins.
network. Every peer has a record of the com-
plete account of all the transactions taken
All crypto currencies are finite, which means there is a precise place and balance of every account. When
number of units of currencies left. So, that makes it more difficult a transaction takes place, a file which signed
to mine and produce the currency units. Due to their political inde- by user’s private key is generated. Then the
pendence, they can be freely used. No government can freeze or signed file is broadcasted in the network,
seize their crypto currency accounts, like normal currencies. All the from peer to another peer. Hence, the trans-
crypto currencies available have following features.
action known by the whole network. It takes
some time to get it confirmed. Confirmation
• Irreversible - After you send a transaction, it can’t be refunded. is the critical concept of cryptocurrency. If
• Anonymous - Anyone can open an account, no verification the transaction gets confirmed, it can’t be
required.
reversed. It is a part of record call blockchain.
• Fast and globally accessible - Entries are shared among all peer
networks and can access from any where.
Miners are the people who confirm these
• Very secure - They’re using latest technology
transactions. They take transaction and
spread them in the peer network and add
HISTORY OF CRYPTOCURRENCY
them to its databases. For this, miners get
Cryptocurrency history dates back to early 1980s. An American tokens/cryptocoins as a reward, because this
cryptographer David Chaum invented an algorithm called “blind- is the main and most important part of the
ing” algorithm which allowed secured web based encryption, cryptocurrency system. Everybody can be a
information exchange between parties and laid the groundwork miner and thereby a part of this system. As
for future e-currency. Then he founded ‘DigiCash’ which produced this is a decentralized network there is no any
a unit of currency based on his algorit