The Premise of Cryptocurrency

Shivam Barke

Cryptocurrency solves the potential flaw in digital banking known as double-spending. Let me explain double-spending through an example if a person buys a sandwich worth ten rupees, for instance, they cannot spend that same ten-rupee bill anywhere else but when the same amount is paid digitally some people can manipulate systems and spend the same ten rupees more than once, that in simple words is double spending to stop this from happening, we have banks and credit card companies acting as middlemen so they vouch for the transactions that you make and they prove that you've already paid for something and at the same time they take their cut of the transactions you make. Cryptocurrencies solve both these issues. Bitcoin is the first implementation of cryptocurrency in blockchain technology.

Blockchain is the technology that enables the existence of cryptocurrencies, think of it like a computer file that stores data but this is a file across a vast network of computers and it's not exclusive to bitcoin and cryptocurrency. Blockchain has many uses, cryptocurrency is just one of them. The blockchain serves as a ledger that contains information regarding transactions. Every network in a blockchain is regularly updated at the same time, in the case of bitcoin it is updated every 10 minutes. Once an entry has been added it becomes immutable. Blockchain is also used in other areas such as smart contracts, video games, healthcare, etc.

In conclusion, Cryptocurrencies are becoming widely accepted and possess a bright future ahead as a technological field.


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