Digital Currency | The future of Money

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 Digital Currency | The future of Money


Digital Currency

                                Digital currency is  a  currency is a money found only in an  electronic  form  as  it  is  used  for  trading  over  the  internat. 

David Chaum introduced the idea of digital cash through a research paper in 1983. In 1989, he founded Digicash an electronic cash company to commercialize the ideas in his research. Internet money, introduced in 1996, and grew to  several million users before the U.S.  Government shut it down in 2008. e-gold has been referenced ta as ''digital currency" by both U.S. officials and academia. In 1997, Coca-cola  offered buying from vending machine using mobile payments.

Digital  curriencies are intangible Transactions can be done only through computer, cell phones or electronic wallets. Like any other flat currency , it can also be used to purchase goods and pay for services. They allow  for instatenous transactions that can be seamlessly ezecuted for making payment across borders when connected to supported devices and networks.  As payment in digital currencies are made directly between the parties without the need of intermediaries the transactions are usually instantaneous and low cost. Transactions involving brings in necessary record keeping and transparency in dealings.

Also known as electronic currency , digital curriencies are of various  kinds including virtual and cryptocurriencies as one of their types. The biggest category of electronic currency includes virtaul, crypto-assets and digital money . 

  Based  on their purpose and functionally , electronic curriencies work in different way;

.) From a legal standpoint , there are mainly two types of digital currency , cetralized and decentralized.

.)The centralized one usually is strictly regulated with government backing . It is subjected to all movements, the physical version of the currency has and works just like real money would.

.)With  the growing popularity of digital curriencies in countries like the U.S.  , India  and Japan , nations have started working towards regulating these curriencies.  In  2015  New York made headlines for being the first state in U.S. to regulate virtual currency companies . Many countries have plans to launch their own crypto-curriencies.

.)Decentralized curriencies are unregulated . Financial instituation, like banks and exchanges, do not control it. We have virtual curriencies that are speculative . These are based on solid projects that bring value or solve problems in the webspace , like ethereum or Bitcoins.

.)Etherum or Bitcoins are cryptocurriencies based on blockchain technology , a structure that records transactional data of the public in different databases of a connected network.

 Crypto-currency is embedded with encryption facilities that allow for verification of the transactions.

.) Cryoto-curriencies work like a stock market .If new  features, new buyers, or an infkux of money come up in price. If problems are discovered, or holders are selling they go down in price.

List  of Digital Currency;

 #1 _ BITCOIN;

                         Bitcion is the most famous and most valued cryptocurrency currently in existance, created in 2009. Marketplaces  called "bitcoin exchanges" allow people to buy or sell bitcoins using different curriencies.

Bitcoin is a new currency that was created in 2009  by an unknown person using the alias Satoshi  Nakamto. Bitcion is a decentralized digital currency . Bitcoi  creator, Satoshi Nakamoto , originally described the need for electronic payment system based on cryptographic proof istead of trust.

#2_ETHEREUM;

                   It's  the second biggest cryptocurrency and is the used one since its applications are many and it keeps adding new useful features.

 Ethereum is not a centralized organization that makes mones. At its core, Ethereum is a decentralized global software platform powered by blockchain technology. Miners and validaotors who participated in operating the Ethereum network , usually by minig , earn ETH rewards for their contributions.

#3_CARDANO;

              It is the first proof-of - stae blockchain platform based upon peer  to  peer reviewed research. Many experts predict Cardano to have a bright futute. With continued developments taking place within the Cardano  ecosystem and in the crypto asets marked as a whole, we may see Cardano potentially reaching a new high.

4.RENMINBI;

           The renminbi is the official currency of the People's Rebublic of China and translates the 'people money' . Its international symbol is CNY.

 As Renminbi is official name of China currency so when you go visit China , you will  need to ose Renminbi currency to  go shoping . If you take to chinese people you will  also hear them refer to the currency as yuan. Both renminbi and yuan are interchangeable in conservatio  but renminbi is the official name.

#5_POLKADOT;

              Palkadot is an open source blackchain platform and cryptocurrency . It provides  interconnectivity and tnteroperability between blackchains, by enabling indepent chain to secure exchanhnge messages and perform transaction with each other without a trusted third_party .

To buy , sell  or trade electronic curriencies , you should rely on proven and texted exchanges.

They are even available witn the facility to convert the curriencies into traditional money. 

Prose of digital curriencies are ;

.) Lower transaction costs and ability to made payments any time.

.) It is easier for the international customers to do bussiness with you.

.) Faster receipt of funds than through legacy financial instituations.

Cons of digital currency;

.) The digital cash uses the internet , which  makes traceability difficult . Hence, the system provides anonymity.

.) The lack of traceability is  a major problem for governments and legal authorities.

CONCLUSION;

               At the end of the day, digital currencies have the potential to exchange the world of business as we know it. In other words, obstacles that digital currencies must overcome in order to become "mainstream" are not just economic but mental , as well.

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