What's Cryptocurrency?

What is Cryptocurrency?

    Cryptocurrency is a digital asset that can be tradeable and be used to transfer the funds to other people. Some country like El Salvador already adopting and use these cryptocurrency as their legal tender and can be used to pay for taxes and etc. One of them is called Bitcoin or can be called as BTC, many people may already know or familiar with bitcoin. 

    BTC was the first cryptocurrency back in the 2008 by internet user's named Satoshi Nakamoto. Since then people start using bitcoin as an alternative for money or an asset. Back then bitcoin was exchanged between one another in the bitcoin community before finally start trading in a crypto exchange like nowadays. Since the day it launched bitcoin has become an icon for cryptocurrency.

How does it work?

    Cryptocurrency use blockchain to record all kinds of transaction that happen in the blockchain, it also uses the algorithm called 'Consensus'. Consensus algorithm basically used to verify each transaction that happens in the blockchain and it all stored in the blockchain so people can actually see the history of their own transactions themself.

There are 2 types of cryptocurrency

1. Token

2. Cryptocurrency

(Top 10 cryptocurrency from coinmarketcap)

    For token its pretty much the same as cryptocurrency but the differences is on the how it was meant to be used. Token is used mostly for a "platform" for Dapps (decentralized apps) and has a value for the technology implemented in the system. Meanwhile, cryptocurrency like the name says, is used as a payment or digital money. Although for now both of them are still called as an asset and not as a currency. 

    The adoption for crypto as a legal tender and institution is a step that shows us how cryptocurrency will play a role in the future. Also the adoption of cryptocurrency is also can be helpful for the next web 3.0 where people will use digital money to do transactions on the internet. Seeing from how many company and country try to adopt and start legalize cryptocurrency, we can maybe speculate what will it become in the future.

Reference

https://en.wikipedia.org/wiki/Cryptocurrency

https://www.coinbase.com/learn/crypto-basics/what-is-cryptocurrency

https://coinmarketcap.com/