Cryptocurrency key concepts
The Umojivity Team Oct 3, 2021
Welcome to part 2 of the crypto short-card-series. This part will focus on some cryptocurrencies and specific vital concepts. Here is part 1 of this series, in case you missed it.
The first cryptocurrency, launched in 2008 and by far, remains the most significant, most influential, and best-known. Thirteen years since, Bitcoin and other cryptocurrencies like Ethereum have grown as digital alternatives to money issued by governments.
As of October 2021, there are more than 6000 cryptocurrencies. The most popular cryptocurrencies, by market capitalization, are Bitcoin, Ethereum, Cardano, Binance Coin, and Tether. Other well-known cryptocurrencies include Dogecoin, Solana, and Litecoin. Some are similar to Bitcoin. Others are based on different technologies or have new features to do more than transfer value.
Crypto allows transacting with people on the other side of the planet as seamlessly as paying with cash at your local grocery store.
Because cryptocurrency holdings aren’t tied to a financial institution or government, they are available to you no matter where you are in the world or what happens to any of the global financial system’s significant go-betweens.
Almost all cryptocurrencies, including Bitcoin, Ethereum, Tether, and Litecoin, are secured using blockchain technology, constantly checked and verified by a vast amount of computing power.
The cryptocurrencies’ systems are permissionless; the core software is open-source. Countless computer scientists and cryptographers have examined all aspects of the networks and their security. These fundamental ideas behind cryptocurrencies help make them safe: Something to note: The network powering Bitcoin has never been hacked.
Every transaction on the Bitcoin, Ethereum, Cardano, and Tether networks is published publicly, without exception. This means there’s no room for manipulating transactions, changing the money supply, or adjusting the rules mid-game.
When paying with cryptocurrency, you don’t need to provide unnecessary personal information to the merchant. This means your financial information gets protected from being shared with third parties like banks, payment services, advertisers, and credit-rating agencies. And because no sensitive information needs to be sent over the internet, there is minimal risk of your financial data being compromised or your identity being stolen.
For merchants, crypto payments significantly reduce the likelihood of being defrauded since cryptocurrency payments can’t be reversed, unlike credit card payments. It can make commerce cheaper for customers by eliminating one of the credit card companies’ critical arguments for their high processing fees.
This marks the end of part 2, the crypto short-card-series. Here is the final part of this series.