ABOUT CRYPTOCURRENCY

About CRYPTOCURRENCY

FUTURE AND EARNING OPPORTUNITIES

A crypto currency is a digital asset designed to work as a medium of exchange using cryptography to secure the transactions and to control the creation of additional units of the currency. Crypto currencies are classified as a subset of digital currencies and are also classified as a subset of alternative currencies and virtual currencies.

Bit coin became the first decentralized crypto currency in 2009. Since then, numerous crypto currencies have been created. These are frequently called alt coins, as a blend of bit coin alternative. Bit coin and its derivatives use decentralized control as opposed to centralized electronic money/centralized banking systems. The decentralized control is related to the use of bit coin's block chain transaction database in the role of a distributed ledger.

Decentralized crypto currency is produced by the entire crypto currency system collectively, at a rate which is defined when the system is created and which is publicly known. In centralized banking and economic systems such as the Federal Reserve System, corporate boards or governments control the supply of currency by printing units of fiat money or demanding additions to digital banking ledgers. In case of decentralized crypto currency, companies or governments cannot produce new units, and have not so far provided backing for other firms, banks or corporate entities which hold asset value measured in it. The underlying technical system upon which decentralized crypto currencies are based was created by the group or individual known as Satoshi Nakamoto.

As of March 2015, hundreds of crypto currency specifications exist; most are similar to and derived from the first fully implemented decentralized crypto currency, bit coin. Within crypto currency systems the safety, integrity and balance of ledgers is maintained by a community of mutually distrustful parties referred to as miners: members of the general public using their computers to help validate and timestamp transactions adding them to the ledger in accordance with a particular times tamping scheme.

The security of crypto currency ledgers is based on the assumption that the majority of miners are honestly trying to maintain the ledger, having financial incentive to do so.

Most crypto currencies are designed to gradually decrease production of currency, placing an ultimate cap on the total amount of currency that will ever be in circulation, mimicking precious metals. Compared with ordinary currencies held by financial institutions or kept as cash on hand, crypto currencies can be more difficult for seizure by law enforcement. This difficulty is derived from leveraging cryptographic technologies. A primary example of this new challenge for law enforcement comes from the Silk Road case, where Ulbricht's bit coin stash "was held separately and ... encrypted. Crypto currencies such as bit coin are pseudonymous, though additions such as Zero coin have been suggested, which would allow for true anonymity.