BitcoinPlay break down more than 2000 cryptocurrencies to present the Top 25 coins of 2018
Until recently, it was not conceivable that there would be a widely accepted currency not issued nor backed by a government. What’s more, it was hard to imagine a currency without physical banknotes and coins.
All this changed nearly 10 years ago when the world’s first cryptocurrency, Bitcoin, went live. Many other digital currencies followed shortly after, disrupting the existing economic ecosystems. Today, there are more than 2,000 of these coins, making it difficult to get to know each one of them.
How Do They Work?
As we already said, cryptocurrencies have no physical presence, they were not created nor owned by any central authority, such as governments or banks, and they have equal value across the world. In other words, you can buy one Bitcoin for roughly $6,500 regardless of your residence. So, there are no conversions and conversion fees, no waiting for the transfers to take place, etc.
How can that be, you might be wondering. It’s pretty simple. Cryptocurrencies are built on the revolutionary technology called ‘blockchain,’ which is basically operating on a peer-to-peer network. There are no owners of this network, only users who keep it alive.
That said, transactions carried through such networks cut out clearing authorities (banks) and any other middlemen. As a result, transactions are much faster than traditional bank transactions, fees are much lower, and your hard earned money is not wasted on conversions.
The story doesn’t end here, however. Cryptocurrencies are also credited with two additional important features – transactions are anonymous and transparent at the same time. Doesn’t this sound a bit contradicting, you might ask. Actually, it’s not.
The blockchain technology is using a digital ledger where each and every transaction on the network is recorded. When a person A wants to send money to person B, it cannot be completed without the transaction being recorded on the ledger.
This ledger is public and transparent, meaning that anyone can see the complete history of all transactions recorded on it. However, since your account where you keep your money is not associated with your credentials, the public cannot see who made transactions.
Sounds interesting, right? If you want to get involved in the world of cryptocurrencies, the infographic below is an excellent place to start.ᐧ