CRYPTO CURRENCY IS A PEER TO PEER ELECTRONIC CASH SYSTEM
Crypto Currency uses peer-to-peer technology to operate with no central authority or banks managing transactions. The issuing of crypto currency is carried out collectively by the network, it is open-source, its design is public, nobody owns or controls it and everyone can take part. Through many of its unique properties, crypto currency allows exciting use cases that could not be covered by any previous payment system. Unlike traditional financial networks, which create massive bottlenecks and usage fees, the crypto currency space was designed to solve financial solutions in a minimally invasive and private manner. Crypto Markets trade actively twenty four hours a day, seven days a week.
3 major benefits of crypto currencies include:
Fast peer-to-peer transactions
Low processing fees
Bitcoin (symbolized by BTC) is the flagship cryptocurrency, like many others (litecoin- LTC, ethereum- ETH). Each token is a digital asset designed to work as a medium of exchange that uses cryptography to control its creation and management. Rather than relying on central banking authorities, such as the IMF or Federal Reserves- which are in practice very politicized authorities, the BTC market makes itself. The world’s first bitcoin transaction was January 12th 2009 although its white paper was originally created October 31st 2008. Central Banks can effectively lend/print/create money at will and have been for quite some time, devaluing purchase power for those who save- even putting their sovereign governments into debt. USA's current debt limit is over 20 Trillion dollars due to decades of haphazard "quantitative easing" which sounds more professional than ‘printing baseless fiat debt’. Dollars are consistently worth less, and inflation of cost is and has been a runaway train for decades.
Bitcoin is production limited to 21 Million coins/tokens ever mined. Currently about 85% of BTC has been mined and created, and the remaining BTC tokens will be mined with increasing difficulty known as 'halving' periodically to keep the value and scarcity and also circulation of the tokens under control in a more organic manner. A benefit of BTC transactions is their divisibility well beyond anything in traditional currency. So the tokens themselves can appreciate in a limitless manner and also transact in increasingly accurate ways. The primary transactional challenge is valuing goods and services in the face of volatility- which led to the creation of Stablecoins- designed to be based directly against the US Dollar for instance. This additional stable layer allows fluidity of intercoin transfers and daily settlements into plain terms. As BTC, LTC, ETH all fluctuate against Fiat currency or USDT (or Tether) and hedge against each other, ZDA can realize quick gains in trades by "going back to Tether" as the pullback option settlement.
What is cryptography?
Modern cryptography is code language- heavily based on mathematical theory and computer science practice. Cryptographic algorithms are designed around computational hardness assumptions, making such algorithms hard to break in practice by any adversary- and they evolve broadly to yield less mining rewards with time. It is theoretically possible to break such a system, but it is not feasible to do so using any known practical means. These schemes are therefore termed computationally secure. Theoretical chip and CPU/GPU advances, improvements in integer factorization algorithms, and faster or more focused computing technology require these solutions to be continually adapted.
BTC and other digital tokens are mined and transacted using computer network power, and the speed at which the broad network processes these factors is known globally as the Hash Rate. The higher the Hash Rate, the more computing power is dedicated to the network, the faster the transactions are taking place. Eventually, with increasingly heavier computer usage on the various crypto networks, the amount of nodes or verifying stations will multiply and lead to increased ease of transfer as well as increased security- node have to verify a transaction for security purposes.