We talk about Transhumanism in previous blog that how the fourth phase of industrial revolution can impact our lives. Everything is digitally connected. The digital world is very risky, especially when our money is at stake. So, The American secret-code expert David Chaum understood/created an unnamed (related to secret computer codes) electronic money called ecash. Today we are going talk about cryptocurrency.
Let's start...
We use money every day, but we rarely appreciate its power and its flaws. So, What is money exactly? At its core, money represents value. If I do some work for you, you give me money in exchange for the value I gave you. I can then use that money to get something of value from someone else in the future. Throughout history, value has taken many forms and people used a lot of different materials to represent money. Salt, wheat, shells and of course gold have all been used as a medium of exchange. We have a global economy. We're going to need a global digital currency. - Cryptocurrency is gonna be a great democratizing force for the world, because it's gonna level the playing field and allow anybody with a cell phone to access financial services.
cryptocurrency
A cryptocurrency is a virtual (digital) currency designed to work as a medium of exchange. It uses cryptography to secure transaction records, to control the creation of additional coins, and to verify the transfer of coin ownership. Cryptocurrencies leverage blockchain technology to gain decentralization, transparency, and immutability. Cryptocurrencies typically use decentralized control as opposed to centralized digital currency and central banking systems. There are many virtual currencies in the world. Bitcoin, Ethereum, Ripple, Litecoin, Bitcoin cash and many more. But most popular is Bitcoin.
Bitcoin
In October 2008 a document was published online by a guy calling himself Satoshi Nakamoto. The document, also called a whitepaper, suggested a way of creating a system for a decentralised currency called Bitcoin. This system claimed to create digital money that solves the double spend problem without the need for a central authority. With Bitcoin, every computer that participates in the system is also keeping a copy of the ledger, also known as the Blockchain.
What is Blockchain ?
A blockchain is a chain of blocks that contains information. This technique was originally described in 1991 by a group of researchers and was originally intended to timestamp digital document so that it’s not possible to backdate them or to tamper with them. A blockchain is a distributed ledger that is completely open to anyone. Each block contains some data, the hash of the block and the hash of the previous block. The data that is stored inside a block depends on the type of block chain. The Bitcoin block chain, for example stores the details about a transaction in here, such as the sender, receiver and amount of coins. A block also has a hash. You can compare a hash to a fingerprint. It identifies a block and all of its contents and it's always unique, just as a fingerprint.
Once a block is created, its hash is being calculated. Changing something inside the block will cause the hash to change. So in other words: hashes are very useful when you want to detect changes to blocks. If the fingerprint of a block changes, it no longer is the same block. The third element inside each block is the hash of the previous block. This effectively creates a chain of blocks and it’s this technique that makes a block chain so secure.
History Of Cryptocurrency And Bitcoin
In 1983, the American cryptographer David Chaum conceived an anonymous cryptographic electronic money called ecash. Later, in 1995, he implemented it through Digicash. In 1998, Another person called Wei Dai published a description of "b-money", characterized as an anonymous, distributed electronic cash system. Shortly after that, Nick Szabo described bit gold. The first decentralized cryptocurrency, bitcoin, was created in 2009 by Satoshi Nakamoto. Nakamoto has stated that work on the writing of the code for bitcoin began in 2007.[8] On 18 August 2008 he or a colleague registered the domain name bitcoin.org. On 31 October 2008, he published a paper on the cryptography mailing list at metzdowd.com describing a digital cryptocurrency, titled "Bitcoin: A Peer-to-Peer Electronic Cash System".
The paper of Satoshi Nakamoto
In English – White paper
In hindi – White paper
If you want to read in other language you can download from orginal website below 👇
Crypto mining
What is crypto mining? Cryptocurrencies operates as a peer to peer network. Let's take a example of Bitcoin. So how crypto mining or Bitcoin mining works. With Bitcoin, miners use special software to solve math problems. And are issued a certain number a bitcoins in exchange. This provides a smart way to issue the currency.
This provides a smart way to issue the currency. And also creates an incentive for morepeople to mine. Since miners are needed/demanded to approve Bitcoin transactions more miners means a more secure network. The Bitcoin network automatically changes the difficulty of the math problems depending on how fast they are being solved.
In the early days, Bitcoin miners solved these math problems with the processors and their computers. Soon miners discovered that graphics cards used for gaming were much better suited to this kind of working. Graphics cards are faster, they use more electricity and create a lot of heat. The first commercial Bitcoin mining products included chips that were reprogrammed for mining Bitcoin. These chips were faster but still power-hungry. ASIC, or application specific electronic devices, chips are made for Bitcoin mining.
ASIC technology has made Bitcoin mining even faster while using less power. As the popularity of Bitcoin increases, more miners join the network making it harder for people to solve the math problems. To overcome this, miners have developed a way to work together in pools. Pools of miners find solutions fasterthan their individual members and each miner is rewarded (fair in amount, related to/properly sized, related to) the amount of work he or she provides. Mining is an important and very importantpart of Bitcoin that secures/makes sure of fairness while keeping the Bitcoin network stable, safe and secure.
Cryptojacking
This is the idea that we can trick someone instead of maybe putting a virus on their machine I mean it might still be a virus, but we can trick them into mining some cryptocurrency for us. When you are surfing a site, they use some JavaScript code in your device which keeps running back in your device. They're now just trying to use some of your CPU power to earn some money.
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