Blockchain And Cryptocurrency

What is blockchain??
Blockchain is the process of storing data in such a way that the data cannot be tampered with or makes it almost impossible to tamper the data. In this technology, the transactions are duplicated and stored in blocks in many devices so that a minor transaction is recorded in every network of a block. The combination of such many blocks makes blockchain. Data tampered with in any one device won't be tampered with in other blocks which makes blockchain almost impossible to hack the system and manipulate the data. It is a decentralized way of storing the transaction. Though different kinds of data can be stored in blockchain, it is mostly used for storing transactions. In the blockchain, transactions are irreversible hence recording all data stored in blockchain. Blockchain and similar technology, like many experts believe, will disrupt numerous industries, including finance and law.

What are cryptocurrencies?

Cryptocurrencies are online payment systems that are denominated in virtual "tokens" that are represented on the system's internal ledger via ledger entries. The term "crypto" refers to a variety of encryption methods and cryptographic approaches, such as elliptical curve encryption, public-private key pairs, and hashing algorithms.
Cryptocurrency comes from the word cryptography, which refers to the encryption method used to make the network secure. Because of their decentralized structure, they can exist outside of the control of governments and central authorities. Blockchains, which are organizational systems for protecting the integrity of transactional data, are used by many cryptocurrencies. Cryptocurrencies have been reprimanded for several reasons, including their use in illegal operations, exchange rate volatility, and the vulnerability of the infrastructure that supports them. On the other hand, their flexibility, divisibility, inflation resistance, and transparency have all been praised.

Types of Cryptocurrency:

There are various types of cryptocurrencies depending on their functionalities. Bitcoin was the first blockchain-based cryptocurrency, and it is still the most popular and significant. Many alternative cryptocurrencies exist today, each with its own set of features and requirements. Some are similar to Bitcoin while others are brand-new currencies created from the ground up.
Litecoin, Dogecoin, USDT, Ethereum, Cardano, and EOS, are some of the rival cryptocurrencies produced by Bitcoin's success. These coins are also known as Altcoins and serve a different purpose.  By August 2021, the entire value of all cryptocurrencies will have surpassed $1.8 trillion, with Bitcoin accounting for roughly 46.5 percent of that total.

Some of the major cryptocurrencies are explained below

Bitcoin (BTC):
What exactly is Bitcoin?
It is the first decentralized digital currency in the world.
Bitcoin, unlike yen and dollars, maybe moved between individuals via the Internet without the use of banks. Some shops and online stores throughout the world allow you to pay in cash without having to exchange money.

How does it work?
Huge computers record and share Bitcoin transactions, which everyone can observe in real-time. The program has set a maximum of around 21 million shares for Bitcoin.
As a result, the key distinction between the yen and the dollar is that the yen's price is set by market forces rather than by the central bank's aggressive efforts to maintain its value. Bitcoin is a digital currency that is not controlled by a government and maintains transaction data between users. So that Bitcoin does not cause fraud, transaction information is approved by the computation process known as mining. Miners who complete the computational job first receive bitcoin as a reward. 

Perspectives for the future
The first point is the global movement to improve rules. Bitcoin's price fluctuates a lot, making it impossible to settle promptly, yet cryptocurrency technology advances and improves every day. As Bitcoin got more popular, some movements were controlled in each jurisdiction, and cryptocurrency exchanges were obliged to have a framework in place to protect users. If restrictions become more stringent, this might have a significant impact on price fluctuations. The rarity value is the second point to consider. Bitcoin is known as "digital gold," and it has the same scarce value as gold.
Additionally, cryptocurrencies are separated into two categories: "Bitcoin" and "Altcoin," with altcoin referring to all currencies other than Bitcoin.

Ethereum (ETH):

What exactly is Ethereum?
Ethereum is a platform on which a new type of service can be built. Ether is the money utilized on this platform. There is no limit to the number of certificates that can be issued. The system is supported by users all across the world, and there is no administrator in the center.
How does it work?

Ethereum has smart contract capabilities. Smart contracts are a type of contract that can be executed automatically. Credit has been gained in the past by a third party intervening in the contract. In the absence of a third party, you can use Ethereum's smart contract to autonomously enforce the contract. On the blockchain, Bitcoin stores all transaction history, while Ethereum can also manage contract information.

Advantage

Ethereum may be used to create distributed apps (DApps). Unlike traditional programs, distributed apps do not have a central administrator. With open-source, it runs automatically. Furthermore, anyone can use the Ethereum protocol to create a new token. So far, Ethereum has given birth to a slew of new tokens.
With Ethereum, you can create a mechanism that automatically executes various transactions that do not require a central administrator. Many companies from all over the world participate in the Ethereum Federation of Companies (EEA), and Ethereum expects its prospects in various fields.

Litecoin (LTC):

What is Litecoin? Litecoin is a virtual currency called silver if Bitcoin is gold. Litecoin, which was born in 2011 based on Bitcoin, is a complement to Bitcoin. The currency unit is LTC, and the issuance limit is set at about 84 million units, which is four times that of Bitcoin.
How it works Like Bitcoin, there is no administrator in the center, and the transaction is approved by a calculation work called mining. Advantage Litecoin has also succeeded in utilizing a technology called atomic swap. Atomic swap is a technology that allows you to exchange cryptocurrencies directly between different blockchains without going through third parties such as cryptocurrencies exchanges. Prospects By implementing Segwit, it is now possible to introduce a technology called Lightning Network that aims to realize safe and quick transactions. If the Lightning Network is introduced in the future, more companies will adopt Litecoin as a payment method, and transactions may be smoother than ever.

Advantages:

Cryptocurrencies have the potential to make it easier to transfer payments between two parties without the involvement of a trusted third party like a bank or credit card company. To protect these transfers, public and private keys, as well as other incentive schemes such as Proof of Work and Proof of Stake, are used.

In cryptocurrency systems, a user's "wallet," has a public key, while the private key is only known by the owner and is used to sign transactions. By completing fund transactions with minimum processing costs, users can avoid the hefty fees paid by banks and financial institutions for wire transfers.

Disadvantages:
The semi-anonymous nature of cryptocurrency transactions makes them perfect for many illegal acts, including money laundering and tax evasion. Supporters of cryptocurrency, on the other hand, usually emphasize anonymity, citing advantages such as safety for whistleblowers and activists living under oppressive regimes. Some coins provide greater anonymity than others.
The semi-anonymous character makes them ideal for a variety of criminal activities, including money laundering and tax evasion. Cryptocurrency supporters, on the other hand, frequently emphasize anonymity, citing benefits like protection for whistleblowers and activists living under harsh regimes. Some currencies have a higher level of anonymity than others.