IS CRYPTO CURRENCY THE MONEY OF THE FUTURE?
In today’s world, most of the people are trying to understand the global phenomenon known as Crypto currency. Some of the people, governments, and banks are still finding hard to understand this trendy topic, whereas some of the companies are already aware of its importance. Crypto currency transpired as a side product of another invention. The unknown inventor of Bitcoin, Satoshi Nakamoto found the crypto currency which he never intended to do so. While announcing Bitcoin, he said he developed “A Peer-to-Peer Electronic Cash System”.
Satoshi’s intention was to build a decentralized digital currency system. Many people tried hard but could not succeed in inventing it. He tried to form a digital cash system without a central component (central entity) similar to Peer-to-Peer network for file sharing. This gave rise to the emergence of cryptocurrency. In order to realize what digital cash is, you need a payment network with accounts, transactions, and balances. This is easily understandable, but the problem is each and every payment network has to solve for preventing the double spending: nothing but to counter that one entity spends the equivalent amount twice. The central server does this. In the case of a decentralized network, the central server will not be present. So, you necessitate every single entity of the network to perform this job.
Every peer in the network should have the transaction list to check if the future transactions are authorized and acceptable or whether the attempt to double spend. If the network peers disagree about one single, minor balance then everything will be broken. This requires an absolute consensus and a central authority to affirm the accurate state of balances. Satoshi’s significant innovation was to achieve consensus deprived of a central authority. As a solution, cryptocurrency took birth which made the solution more fascinating, thrilling and helped it rule the today’s market.