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Cryptocurrency = Blockchain + Cryptography !

Nowadays CryptoCurrencies are in huge demand and many of us want to invest or already invested in cryptocurrency trading, I have been trading for the currencies for the last 8 years. Before jumping into cryptocurrency trading I would recommend you get a basic knowledge of cryptocurrencies/concepts.

Topics to be covered in this blog would be:
  • Introduction to CryptoCurrency
  • Introduction to Blockchain
  • Introduction to Cryptography
  • Available CryptoCurrencies
  • Available Popular Exchanges for trading Cryptos
  • User Rating of CryptoCurrencies
  • Other Information

Introduction to CryptoCurrency
A CryptoCurrency is a digital or virtual currency designed to work as a medium of exchange. It uses cryptography to secure and verify transactions & blockchain to distribute trust among several nodes/entities instead of relying on a single entity.

Introduction to BlockChain
Blockchain is a distributed ledger technology (DLT) that allows information to be saved globally on thousands of nodes(servers) – while letting anyone(/node) on the network see everyone else's entries in near real-time. That makes it difficult for one user to gain control of, or game, the network.

In otherworld, Blockchain gives a solution to distribute the trust among several entities instead of relying on a single entity.

Let's see a problem statement which could be resolved by blockchain.
Problem Statement: The Election commission is responsible to store all the data of voters and for administering Union and State election processes. 
So, we trust a single entity(called 'Election commission') for the entire process and results. There is a fair possibility to influence the process or result of an election or to alter the data stored with the election commission.
Solution: Blockchain gives the solution of the above problem statement, blockchain will distribute the data and trust of voters among several entities.


Introduction to Cryptography
Cryptography is a way of protecting information/data by converting it into an encrypted format. It helps data to be stored and transmitted in a particular format, so unwanted reading/processing of the data could be avoided. It uses an algorithm and a key to transform input data into encrypted data.
Orignal data (+) Key ==> Encrypted data (Secure form of data)
To get back information/data in the original format you would need prior knowledge of the key.
Encrypted data (-) Key ==> Original data (Data in readable form)

CryptoCurrencies are applications based on blockchain (to distribute the trust) and cryptography (to keep information in encrypted form). 

Available CryptoCurrencies 
There are approx 5,392 Cryptos being traded with a market capitalization of $20bn (as of April 2020).
List of available all cryptocurrencies

Available Popular Exchanges for trading cryptos
Most Popular CryptoCurrencies
Currency-Name Short-Name Founder User-Rating
  Bitcoin   BTC  Unknown 3.5/5
  Ripple   XRP  Ripple Labs 3.7/5
  Tezos   XTZ  Dynamic Ledger Solutions 4.7/5
  Chainlink             LINK  SmartContract Chainlink Limited SEZC 4.5/5
  Neo(AntShares)   NEO  Da Hongfei and Erik Zhan 3.8/5
  Ethereum   ETH  Foundation 3.8/5
  Bitcoin Cash   BCH  Unknown 3.3/5
  Iota   IOTA  Dominik Schiener 3.3/5
  Stellar   XLM  Jed McCaleb 3.3/5

Comments

  1. Great introduction...pls keep on posting more articles

    ReplyDelete
    Replies
    1. Thanks, Yes I will be adding more content soon. Please share this with your friends and give more suggestions ;)

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