What Is Cryptocurrency: Ultimate Breakdown-Origin and Future

Cryptocurrency is a digital or virtual currency that uses cryptography for security. A digital or virtual currency which operates independently of a central bank. This means that they are able to transfer money without going through the banking system. A cryptocurrency is difficult to counterfeit because of this security feature. A defining feature of a cryptocurrency, and arguably its most endearing allure, is its organic nature; it is not issued by any central authority, rendering it theoretically immune to government interference or manipulation. The most well-known cryptocurrency is Bitcoin, but many others, such as Ethereum, Litecoin, and Tether, are also available.

The origin of Cryptocurrency

In many ways, passion and vision are the drivers of the cryptocurrency industry for a better future. It is both a technology and a social movement that seeks to revolutionize the world by removing friction from financial transactions. Through their decentralized nature, blockchains are censorship-resistant, secure, and fair, with protocols such as proof-of-work and proof-of-stake to establish real consensus on the blockchain.


The origins of cryptocurrencies can be traced back to the 2008 financial crisis, which led to the introduction of Bitcoin in 2009. As a result, cryptocurrencies are now considered the second largest market capitalization asset class, ranking right behind stocks with a total value surpassing $135 billion and over $1 trillion in monthly trading volume. Recent talk about bitcoin is all around. The question on everyone’s mind is: how does it work?

The answer to this question lies in understanding Bitcoin’s history. Bitcoin was created by a group or individual known as Satoshi Nakamoto. It uses peer-to-peer technology to operate with no central authority or banks; managing transactions and the issuing of bitcoins is carried out collectively by the network. Bitcoin is described by a white paper called the Bitcoin Whitepaper. In the whitepaper, Satoshi describes the system and its problems.

He also laid out a solution to the issues he was addressing. The answer was a new digital currency, which would be decentralized (each party would need to have their wallet) and efficient (the miners that confirm transactions could use their hardware resources to solve an algorithmic puzzle, allowing them to make money by doing so).

The success of Bitcoin has led to thousands of other cryptocurrencies, with hundreds being created every month across different countries. However, cryptocurrency markets are not without their challenges, such as scalability and regulations. In addition, it is essential to note that cryptocurrency technology is still in its infancy, and many more developments are expected along the way.

Despite its short history, the blockchain’s potential is being harnessed daily. For example, the blockchain can provide an immutable record of transactions that can be verified via public or private key cryptography. This allows for near-instantaneous and transparent trading, creating a trustless environment and providing an audit trail of all activity.


Ethereum is a public blockchain-based distributed computing platform for smart contracts. This is the article about its origin, defining terms related to the project, and its development. Canadian-Russian programmer Vitalik Buterin first proposed Ethereum in 2013.

Since then, it has been adopted by two prominent software companies (the Gnosis prediction market and Quorum) and dozens of start-ups and technology companies, such as Microsoft and OmiseGO. It has also undergone several adaptations that have modified some features, like mining or crowdfunding. Still, it remains open-source software with no central point of control or proprietary rights being conferred upon any organization or individual within the network.

With a few modifications to its underlying protocol, Ethereum utilizes the blockchain technology that was first introduced by the Bitcoin network. It has one type of digital token called ether that is used to execute smart contracts on the platform. It is also the first blockchain to utilize smart contracts, which allows developers and programmers to create applications on top of its blockchain. 

The most significant difference between Ethereum and Bitcoin lies in their respective mining methods. Bitcoin mining (which is used for creating bitcoins) requires a lot of energy due to its proof-of-work mechanism called “Hashcash.” In contrast, Ethereum uses an alternative approach called “mining,” which requires less energy consumption and operates an additional component called “Gas.” 

Ethereum maintains an extensive network of approximately 20,000 developers and programmers. It is currently the second most valuable cryptocurrency in terms of market capitalization and has a current supply of around 80 million ethers. In addition, it has been the most significant cryptocurrency for trading among exchanges for almost all the years between 2014 and 2017.

Even though it is open-source software without any additional formal rights granted to any organization or individual within Ethereum, Vitalik Buterin, the founder of Ethereum, has received several awards for his contributions to the project.

Ethereum estimates its energy usage will decrease by 99.95% once it closes “the final chapter of proof of work on Ethereum.” The Role of Consensus in Crypto Both proofs of stake and proof of work rely on consensus mechanisms to verify transactions. (Forbes)

The Ethereum Foundation, an organization that oversees many aspects of development on the Ethereum platform, was launched in July 2015 as a non-profit organization in Switzerland. Its initial funding came from a pre-sale of ether (ETH) tokens launched by the Ethereum Foundation before launching its first test network and genesis block. Its budget has primarily been based on the value of ETH tokens issued in early crowd sales, making it one of the most funded digital currency projects until now.

The Future of Cryptocurrency

Investor optimism is rising after the most volatile year of Bitcoin’s existence. In Q3 2017, significant cryptocurrencies experienced more than a 50% increase in their value. This has led to people worldwide investing in a new asset class: cryptocurrency. But, what will the future of cryptocurrency look like? One of the biggest questions surrounding blockchain is how it can be used to solve problems outside of the financial industry.

The reality is that there are many advantages to using a system like Ethereum for things other than decentralized contracts. Many non-financial companies have already begun using blockchain to solve real-life problems. Large organizations like Accenture and Microsoft have recognized this potential and worked on solutions allowing businesses to track products and services throughout their lifetimes.

This has also led IBM to start testing blockchain in supply chain management processes with Walmart and other major companies.
The blockchain could be used to solve real-world problems in a way that traditional databases have failed to do. The question is, how can we make this happen?

The blockchain offers an important service that is often overlooked. It allows anyone to upload static data onto a public ledger and link it to other data on the network. This means you can create your joins on a public database and gain access to more data than you originally uploaded. For example, if you made a blockchain containing metadata about books, you could have it link up with another blockchain containing price information for those books. This would allow users to search for any text in your database and find where they can get the best deal online.

Cryptocurrency Prices

The price of Bitcoin increased in 2017 by more than 1,800% as it became more widely used. At the beginning of 2018, bitcoin made new all-time highs, and many other currencies did too. Cryptocurrency is becoming a growing phenomenon that is slowly taking over the world. However, cryptocurrency prices are volatile, which makes this investment highly risky. 

While the original cryptocurrency is down by 35% year to date, Bitcoin has seen an appreciation of more than 1,000% over the past five years. (Forbes)

One should not invest more than one can afford to lose. Below, I have put together a list of helpful websites that can help you track the history of cryptocurrency prices and trends to research before investing in cryptocurrency.


A cryptocurrency price index site that allows you to buy and sell any cryptocurrency anywhere in the world. This site lets you easily track the price of Bitcoin, Ethereum, Ripple, and other major currencies.


CoinGecko is a website that was launched in 2014 to offer data about cryptocurrencies. After being a part of the initial project, it has been developed into an application for all iOS and Android users. This information network helps you make smarter investment decisions by providing all the necessary tools for cryptocurrency market analysis. CoinGecko has been translated into 11 languages, with support from countries like Poland, Russia, India, Indonesia, Vietnam, and much more.


An excellent source for analyzing charts and graphs with technical analysis indicators such as Bollinger Bands, MACDs, and RSI to analyze the price of a cryptocurrency. It also has diagrams of stocks, Forex, and other financial markets. They have their news section where you can see all their articles on one page.


This website allows you to trade cryptocurrencies for other cryptocurrencies, bitcoins, and other commodities like gold and oil without using any intermediary platform or broker. You can deal with margin trading online. If you believe that the value of a particular cryptocurrency will increase, then using this website would allow you to make money while investing in these positions, which means that your profits will increase on a percentage basis. Your investment amount will increase as well.


Cryptocurrency’s unregulated nature has been both a blessing and a curse for the industry. It’s helped make crypto more accessible to consumers and investors alike, but it’s also made it more difficult for people to use cryptocurrencies for payment.

To help improve the state of cryptocurrency regulation, experts have been working on regulatory frameworks that aim to create a balance between security and accessibility.

Regulation can help remove ambiguity from the crypto market and give lawmakers insights into how people use their crypto coins. This information could help inform future policies and regulations, making them more effective and less damaging to the industry.


The term “cryptocurrency scalability” refers to blockchain-based cryptocurrencies like Bitcoin and Ethereum ability to process more transactions on a given network. Scalability is the capacity of a cryptocurrency to handle a high volume of simultaneous transactions. As cryptocurrencies have become increasingly popular as a means of payment, this problem has become increasingly crucial for the future of these currencies.

Blockchains are limited in the number of transactions they can process per second due to the “block size.” The average block size for Bitcoin is 1 megabyte (MB), which vastly limits its capacity to process transactions. For example, with just 1 MB blocks, Bitcoin could only support seven transactions per second (TPS). Compare this with VISA or MasterCard, which have peak capacities of 45000 TPS and 24000 TPS, respectively.

To address these fundamental issues faced by cryptocurrencies like bitcoin, new blockchain incentivized protocols that use different consensus algorithms and propose new block sizes are being developed. These proposals have pros and cons, but the touted benefits of these new systems include support for a broader ecosystem of services and improved scalability.


Cryptocurrencies use various technologies, such as cryptography, blockchain, and distributed ledgers, to regulate the generation of currency units and verify the transfer of funds. As a result, cryptocurrencies represent a lucrative investment opportunity for traders and investors but can be highly volatile because their value is mainly unregulated (although this is changing). As such, many traders are solely interested in obtaining returns without the risks of loss.

Cryptocurrencies are anonymous (unlike physical cash), making them especially attractive for criminal enterprises and confidential transactions such as money laundering or drug dealing. The volatility of cryptocurrency markets has made them popular targets for hackers who target exchanges, causing significant damage to these platforms and resulting in stolen cryptocurrencies or market manipulations. 

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