What do we understand by Cryptocurrency? Crypto is an encrypted, mostly decentralized digital currency issued and recorded on blockchain which is mostly a public ledger. It can be transferred between peers using wallets and confirmation of transactions is made through a process called mining or staking depending on the consensus mechanism being used by the underlining blockchain.

Blockchains, which are organizational methods for ensuring the integrity of transactional data, is an essential component of many cryptocurrencies. Many experts believe that blockchain and related technology will disrupt many industries, including finance and law.

A defining feature of cryptocurrencies is that they are generally not issued by any central authority, rendering them theoretically immune to government interference or manipulation.

Their existence? cryptos are encrypted and only exist in Digital form, it doesn’t have any physical equivalent in the real world. Examples of such currencies are Bitcoin, Ethereum, Ripple, Litecoin, Dash, BNB, Dogecoin, Shiba Inu, Cardano, Polkadot, Solana, Uniswap, Tether, Polygon etc. all of which have different features like the kind of blockchain network it operates on, the consensus mechanism, the purpose of its creation, governance and other distinguishes.

The cryptocurrency market is valued over $800 Billion as at toady (click here for updated list https://coinmarketcap.com/ )

Criticisms of cryptocurrencies: Cryptos face criticism for a number of reasons, including their use for illegal activities, exchange rate volatility, and vulnerabilities of the infrastructure underlying them.

The positives: Cryptos have also been praised for their portability, divisibility, inflation resistance, transparency and low transaction fee. For Example; one can transfer $100,000 worth of any cryptos from one wallet to another wallet borderless and pay less than $10 as network fees. Try that with bank transfers and it wont be possible.

Thanks for reading. I believe by now you have gotten a fair idea of what cryptocurrency is all about. In my next article, I will write about crypto terminologies to enable you familiarize and understand when you see them in the news or social media.

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