What is the Purpose of a Cryptocurrency?
In a paper published in April 2021, Guillermo Eguino, Laura D. Fuchs and Ilham Tohari, defined a new class of digital money called Cryptocurrency. Cryptocurrency is not a currency but is instead a type of digital information technology that serve as legal tender. A Cryptocurrency is an asset, usually computer code, that serves as legal proof of ownership for something such as digital certificates of authenticity. For example, this asset may be a website, database or even an online profile.
Cryptocurrency was created to help facilitate online transactions but it became popular as an alternative means of payment for goods and services. Cryptocurrency is not issued by any government, but rather is stored within a network of computers and can be transferred instantly from one buyer to another. A major benefit of Cryptocurrency is its use as the digital “fuel” behind smart contracts and other forms of peer-to-peer software that run on the Internet. When the software program runs Cryptocurrency is used as a source of random access memory (RAM) for calculations.
The Internet has spawned several distinct forms of Cryptocurrency that are currently being utilized by individuals and businesses. One of the most well known forms of Cryptocurrency is called Peer To Peer (P2P) money transfer. This type of Cryptocurrency operates just like any other type of currency transaction, with the exception that it is conducted over the Internet. There are several different types of Cryptocurrency used in P2P programs such as BitUSD, BitUX or Fair.
The concept of Cryptocurrency was first introduced into the world through the invention of the Lightning Network. The Lightning Network system is a new kind of Cryptocurrency that works without the need for a centralized administrator. This type of Cryptocurrency relies on the distributed ledger technology called the Blockchain. The Lightning Network consists of a group of computers instead of one centralized computer which allows for real-time transfers of funds between users and between computers in the network. Cryptocurrency that is created using the Blockchain can be traded easily and conveniently across the internet.
Many people have raised questions and issues regarding the legitimacy of the Lightning Network due to several complaints by users regarding high fees and charges for transfers. Despite these issues, the Lightning Network remains to be one of the largest Cryptocurrency projects to date. Another Cryptocurrency that is gaining popularity is called “Bitcoins”. With the use of a smart phone or a laptop, many people around the world are now able to make mobile payments with their smartphones. This new feature has created a whole new class of mobile Cryptocurrency wallets called “bitcoins.” “bitcoins” are much like any other mobile wallet and are used for similar purposes including sending and receiving payments.
Developers around the world are working diligently to create new forms of Cryptocurrency. One such upcoming form of Cryptocurrency is referred to as “satoshi.” The name “satoshi” comes from the character “Socrates” who is known for his dialectical debates and his style of philosophical debate. In one of his debates, he famously stated, “The greatest thing about the world is its citizenry.” With this comment, many citizens across the world decided to use the Cryptocurrency system to achieve consensus. Other Cryptocurrency developers around the world are now working hard to build upon the success of Satoshi and to expand on his ideas.
