Most of the people are still unfamiliar with the term cryptocurrency banking. There is a lot of confusion in the mind of people regarding it. So let’s try to make it clear. Cryptocurrency is a kind of digital or virtual currency which is specially designed in order to work as an exchange medium. As it is a digital cash chance of frauds are quite high so in order to prevent it and make the transactions more secure a method or technique is known as cryptography is used.
The history of this digital currency dates back to the year 1990 when the demand for a kind of digital currency was very high. This is to prevent frauds and financial problems. In 2009 an anonymous programmer or possibly a group of programmers known as Satoshi Nakamoto introduced digital cash known as bitcoin. Bitcoin was described by Satoshi as a peer to peer electronic cash system. The main reason behind its immense success and popularity is that it is a completely decentralized system which means there is no central authority and no servers are involved in controlling it. This digital cash is not owned by the government of any country and is completely independent.
The major problem with the bitcoin is to find a method to a solution for the fraud of double spending. There was traditional of doing so is to make it centralized however it will give all its control to an authority or central server.
As said earlier Bitcoin is a decentralized system or network and double spending can only be stopped if each and every participant does this job. The fraud was later controlled by blockchain which is a public ledger of transaction that has ever happened within the particular network.
Bitcoin transfers are actually files consisting of wallet address of both the sender and receiver and the number of coins transferred. The sender is also required to sign the transaction with his private keys making it really secure. Soon Bitcoin banking is going to be the future of banking.
You can use cryptocurrency for buying and selling products online and even offline. It is a really secure and convenient way with a very bright future.