Crypto currency: digital money is an internet based medium of transferring money without any higher authorized permission, it is basically a borderless transaction between one person to another.
It uses encryptions (cryptography) which in turn is used to generate units of currency and verify the transfer of funds which is operated independently. The first crypto currency to be created was by Bitcoin back in 2009, from then many crypto currencies have evolved and are often called as Altcoins.
Advantages of the Crypto Currency
This digital medium of exchanging kripto para has various advantages like
- It is anonymous
- From peer to peer (without any legal agreement to pay or to get paid by higher authorities)
- Mutual distrust
While it has various advantages there is a drawback too, it is the most common and easy way of exchanging money of all illegal business’s as there are no barriers to oppose such transactions.
Transactions through crypto currency are stored in Block chain. Blockchain stores the ledger (register for various transactions) which keeps the record of the money every person has in thousands of computers. In case of a fraud or when a hacker manipulation then one’s balance may be reduces to zero. In such a case he must do the same in various other computers where all the records are stored. This is an easy way to stop frauds as there is the same information stored in various computers. If an account holder loses money from his account then the block chain checks his account balance in various computers, if 51% of computers show the same detail, then the account holder will get his money back.
kripto para has a public key which acts as your account number and private key which acts as your account’s password. It is a highly secured method for storing details about transaction and giving permission for transactions. In an unfortunate scenario where one forgets his/her public key or private key then their entire money might be lost as there are no alternate ways to login into the account. Grab more knowhow before you get started.