This Time SLarena blogs brings new tech-related article. We are using Money notes & Coins to our day to day works. To print these notes & coins the government spends a huge cost also. These money controlled and distributed by government bodies like central banks in any country and also they decides the interest rate and value of the money. Simply, governments print money annually, so it generates more money supply. The money supply process creates inflation in the economy.
We know how to send money from one country to another is not a simple task. we have to pay more to the government for sending money abroad. To avoid this type of situations, one of a Chinese person named Satoshi Nakamoto has published a research in 2008 on a free usable electronic cash system. He was the first inventor of this Cryptocurrency.
This is the Electronic system. Therefore, we can’t see physically coins or money note. all the exchanges, transactions happen through digitally it’s like sending an email. Not like normal money exchange, for this process there is no one to control. Due to that, we can send money from one country to another without any charges.
To use this currency, the first step is to create a bitcoin wallet from Cryptocurrency agent. Then you will receive a unique bitcoin ID. Then you can use that ID to Buy Bitcoins, Sell and exchange and also collect from another person. for the above reason its creates security problem its called Double Spending Problem.
Satoshi Nakamoto found a practical solution for this Double Spending Problem in Digital Currency. He Suggested Decentralized Ledger for this Currency system. To avoid hacking this Decentralized ledger by using cryptography technique this ledger encrypted. That’s why we called this Currency Cryptocurrency. In this system, they copied the secret algorithm on millions of computers in the world. So if a person wants to hack the system he needs to hack all the computers. So its impossible.so this money system has the best security system compared to others. To further Security of this system they used Hash Tag Code systems. The main ledger divides into small pieces it’s called Blocks, these blocks expire within the allocated time. After that, new block pieces replace the previous block. But they stored previous block data to new block using that Hash Tag system.
Anyone can join to maintain above-mentioned Blocks. it’s called maintained blockchain. For this, we need a PC and have to install some software. Then the main system takes some processing power from our pc to maintain the chain. They provide a chance to generate new bitcoins for us. We can collect, exchange and sell or buy the things from bitcoins
A person who involves in this process is called bitcoin miners. But there is a limitation in the minimum amount of bitcoins and it should be more than 20 million. Today there are soo many Bitcoin miners and they have used the massive power of PC’s to mine bitcoin. Not like the traditional money transfer, this never impacted by an inflation
In the initial stage of the bitcoin, there are only a few miners and bitcoin system was simple. But today it has a huge competition and a more complex system.
Bitcoin miners are used several ways to boost bitcoins. The power of normal pc was not enough so they used GPU Power then they used Few GPU’s for PC. So it was very costly. So as a solution new innovation arrived in the market. It was built only to generate Bitcoins. It is ASC (Application Specific Circuit).
Today if you are willing to generate bitcoins you need more than 4 ASC Pc’s and separate cooling system and solar power system.
Currently, the value of 1 bitcoin is equal to 14000$.there are so many cryptocurrencies in the world as an example Ethereum, litecoin, Ripple latest one is invented by Facebook. it is Libra Currency.
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