What is Cryptocurrency / Crypto Currency



In computer science, a cryptocurrency, crypto-currency, or crypto is a digital currency that does not rely on any central authority to uphold or maintain it.[2][3] Instead, transaction and ownership data is stored in a digital ledger[4][5][6] using distributed ledger technology, typically a blockchain. However, when a cryptocurrency is issued by a single issuer or minted or created prior to issuance, it is generally considered centralized.


Despite the name, cryptocurrencies are not considered to be currencies in the traditional sense and while varying treatments have been applied to them, including classification as commodities, securities, as well as currencies, cryptocurrencies are generally viewed as a distinct asset class in practice.[7][8][9] Unlike paper money, cryptocurrency does not exist in physical form and is typically not issued by a central authority. Cryptocurrencies typically use decentralized control as opposed to a central bank digital currency (CBDC).[10] Traditional asset classes like currencies, commodities, and stocks, as well as macroeconomic factors, have modest exposures to cryptocurrency returns.[11]


The first modern cryptocurrency was Bitcoin, which first released as open-source software in 2009. As of March 2022[needs update], there were more than 9,000 other cryptocurrencies in the marketplace, of which more than 70 had a market capitalization exceeding $1 billion.[12]

Histroy

In 1983, American cryptographer David Chaum conceived of a type of cryptographic electronic money called ecash.[13][14] Later, in 1995, he implemented it through Digicash,[15] an early form of cryptographic electronic payments. Digicash required user software in order to withdraw notes from a bank and designate specific encrypted keys before it can be sent to a recipient. This allowed the digital currency to be untraceable by a third party.

In 1996, the National Security Agency published a paper entitled How to Make a Mint: the Cryptography of Anonymous Electronic Cash, describing a cryptocurrency system. The paper was first published in an MIT mailing list[16] and later in 1997 in The American Law Review.[17]

In the 1997 book The Sovereign Individual, the authors, William Rees-Mogg and James Dale Davidson, predict that the currency used in the information age would be using "mathematical algorithms that have no physical existence",[18] which has led some in the cryptocurrency community to call the book's claim a "prophecy".[19]

In 1998, Wei Dai described "b-money", an anonymous, distributed electronic cash system.[20] Shortly thereafter, Nick Szabo described bit gold.[21] Like Bitcoin and other cryptocurrencies that would follow it, bit gold (not to be confused with the later gold-based exchange BitGold) was described as an electronic currency system which required users to complete a proof of work function with solutions being cryptographically put together and published.

In January 2009, Bitcoin was created by pseudonymous developer Satoshi Nakamoto. It used SHA-256, a cryptographic hash function, in its proof-of-work scheme.[22][23] In April 2011, Namecoin was created as an attempt at forming a decentralized DNS. In October 2011, Litecoin was released which used scrypt as its hash function instead of SHA-256. Peercoin, created in August 2012, used a hybrid of proof-of-work and proof-of-stake.[24]

On 6 August 2014, the UK announced its Treasury had commissioned a study of cryptocurrencies, and what role, if any, they could play in the UK economy. The study was also to report on whether regulation should be considered.[25] Its final report was published in 2018,[26] and it issued a consultation on cryptoassets and stablecoins in January 2021.[27]

In June 2021, El Salvador became the first country to accept Bitcoin as legal tender, after the Legislative Assembly had voted 62–22 to pass a bill submitted by President Nayib Bukele classifying the cryptocurrency as such.[28]

In August 2021, Cuba followed with Resolution 215 to recognize and regulate cryptocurrencies such as Bitcoin.[29]

In September 2021, the government of China, the single largest market for cryptocurrency, declared all cryptocurrency transactions illegal. This completed a crackdown on cryptocurrency that had previously banned the operation of intermediaries and miners within China.[30]

List of Cryptocurrencies 
( 12 most popular types of cryptocurrency )

1. Bitcoin (BTC)
2. Ethereum (ETH)
3. Tether (USDT)
4. USD Coin (USDC)
5. Binance Coin (BNB)
6. Binance USD (BUSD)
7. XRP (XRP)
8. Cardano (ADA)
9. Solana (SOL)
10. Dogecoin (DOGE)
11. Polkadot (DOT)
12. Shiba Inu (SHIB)



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