Back in 2009, cryptocurrency revolutionized the landscape of eCommerce. Cryptocurrency is essentially an internet-based medium of exchange that harnesses the use of cryptographical functions to carry out financial transactions. Cryptocurrencies have become a global phenomenon, due to the unique functions they can carry out, typically being the ability not to be controlled by the government or other interferences. Their decentralized nature allows them to be sent directly between two different parties through utilizing private and public keys.
These transfers are usually conducted with minimal processing fees, thus, enabling users to avoid the high charges associated with using conventional financial institutions. It is also a particularly safe method of carrying out transactions, as the identity of the user remains hidden, due to the presence of the blockchain technology. With the cryptocurrency market playing an instrumental role in the investing world, an increasing proportion of the global population is assimilating themselves within the landscape.
The Creation of Digital Cash – Bitcoin
After numerous failed attempts over the years, a pseudonym person, Satoshi Nakamoto in 2009, invented bitcoin. The person or the people involved essentially created a ‘peer-to-peer electronic cash system’, with complete transparency of transactions, but the protection of identity. With most transactions taking place over the internet, Bitcoin becomes an ideal solution for individuals looking for feasibility, accessibility and elimination of banking fees.
- Financial Anonymity
Credit card services require users to divulge their sensitive financial details, which precisely isn’t the case with Bitcoin. This virtual currency allows its users to complete their transaction without revealing any personal detail to the seller, thus preventing any sort of identity or security breach.
- Zero Risk Of Inflation
The bitcoin system limits the number of bitcoins to ever be released, the operative figure being 21 million. Owing to this reason, there is essentially no probability of inflation affecting bitcoins, as excess currency cannot be issued.
- No Interference Of External or Third Party
The entire bitcoin system is settled on peer to peer transaction. With no involvement or interference of external parties, coins can’t be frozen, taxed, claimed or even seized by any given government, due to being decentralized.
- A Safe & Secured System
Each individual is concerned with carrying out their financial transactions within a safe environment. This is essentially where a bitcoin system helps. As due to the prerequisite need of an authentic digital signature, for sending transactions to the blockchain, the entire process is fool-proof for exchanging and storing cryptocurrencies.
- An Easy Route For Small Businesses
Small businesses are never too keen on indulging with international payments, owing to the high transaction fees. However, with Bitcoin being global at its very granular level, the entire process becomes cheaper and faster.
The Advent of Litecoin (LTC)
This currency is referred to as the ‘silver to bitcoin’s gold’. It is also based on the blockchain technology, thus enabling peer-peer transaction. It is, nevertheless, known to have a faster block generation rate, leading to a faster transaction confirmation time. Litecoin has made substantial gains within the cryptocurrency market, especially in the year 2017, thus, indicating promising prospects for the future.
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