The concept of cryptocurrency was created in 1991. However, the first real implementation was made in 2008 by Nakamoto. The first question arises, what is cryptocurrency.
It is a financial arrangement in which currency is being transferred between two parties. At first, problems such as the double fault method appeared, although the problem was later solved through concepts such as block chain technology. The entire process is driven through cryptographic algorithms.
A set of public and private keys is being transferred between two parties. Details of each transaction are stored in each block and for each customer; a chain of blocks forms the complete list of transactions. All blocks together form the block chain. These blockchains are nothing but the financial ledger.
The power of this new system of currency transactions depends on the power of the cryptographic algorithm. With the implementation of algorithms such as DES, the secrecy of any financial transaction (block chain) has been strengthened. However, the concept has not yet been adopted by many countries.
The data of each block cannot be changed retroactively or without network consensus. At the moment, the share of cryptocurrency is not that big, but over time it is expected to grow.
Some of the features of cryptocurrency are:
• Decentralized
• Distributed
• Public ledger
The most important aspect of cryptocurrency is the above, but the technology requires security for effective use. Issues such as the double error have occurred in the past although this issue has now been resolved. The biggest advantage of cryptocurrency is the feature of updating it without touching the central server.
Thus, we don’t have to make any changes to the server. Also, the transaction can be done between two members of the network or three or more.
Thus, the various advantages you get through cryptocurrency are as follows:
• Sure
• Quickly
• Believable
• Correct
However, the technology has developed even though it is not being accepted by all countries. The biggest sensation in cryptocurrency is bitcoin. It is being accepted by many countries. Similarly, you can find many more types of cryptocurrencies.
Each of them uses a unique type of algorithms. All of them, you can learn through cryptography. It is a broad topic and the application in the form of cryptocurrency is one of the major breakthroughs of the last decade. The usage may quadruple in the next few years definitely.
The digital currency is also used as part of controversial settings such as illegal online businesses, for example, Silk Street. The first Silk Road closed in October 2013 and two other forms have been used since then. In the year after the fundamental closing of Silk Street, the amount of dim unmistakable markets expanded from four to twelve, while the measure of drug postings expanded from 18,000 to 32,000.
Darknet markets present challenges regarding legality. Bitcoins and various types of digital money used as part of dark markets are not clearly ordered or legal in all parts of the world. In the US, bitcoins are called “virtual resources”.
This type of controversial regulation puts weight on legal authorization offices around the globe to adapt to the moving exchange of medicines of dimmed markets.