Have you ever paused and thought of the bundles of data recorded of the past transactions? For example, in online transactions, where is all these information stored? Doesn’t the store get full? You may have thought that the record stores which are shared in the network may be a weak solution for data challenges. This is true but to solve this, we can speak of such solutions as cryptocurrency—which by far has enabled data store quite unchallenging. This is one solution that am going to address here.
What is this?
Crypto currency is a digital currency that is secured by secret computerized encoding and decoding of information known as cryptography, which controls the currency additional units’ creation and secures transaction. Controlling is as a result of decentralized crypto currency which restricts the companies and governments inhibiting them that they cannot produce new units.
It is ceremoniously recognized having many of the crypto currencies in circulation globally with Bit coin as one of the first crypto currencies that came to notice when it was launched in 2009 by Satoshi Nakamoto, who also created a technical fine system which is a basis of decentralized crypto currency. A registry of over 14 million bit coins circulated all over the globe during the late 2015 season exposing the swift growth of crypto currency.
Crypto currencies are commonly grouped and classified as a subset of virtual currencies and at the same time digital currencies. According to Sagona Stophel and Catherine, Bit coin was the first decentralized part of crypto currency effect from 2009 which got to the summit in September 2015.
Security and efficiency
Balance, safety and integrity within the crypto currency is well maintained by the miners. They are mutually distrustful group of the general public who, using their machines, help to validate transactions and then add them to the block chain i.e. ledger, by keenly following a specified particular scheme.
This is the highest possible secure digital platform where two parties safely transact without tax or any legal interference. Within the platform, there is a minimal fee which raises the efficiency and economy of crypto currency. To ensure security, the use of private and public keys is employed to facilitate the entire process’ sure and smooth operation.
Efficiency is further achieved by the online store of all possible transactions in crypto currency by block chain which is a decentralized control with a transaction database essentially being a ledger of distribution. All machines using the Bit coin software can have a copy of the transactions without the risk of hacking. Block chain can be used significantly in online voting and other financial institutions to lower the cost of transaction.
Danger involved in crypto currency
We don’t bury our heads in the sand, however, and assume that the danger is gone. Do I flatter to save? That would be disastrous. Better lay the exact thing barely so that the danger is exposed?
All data and information will be lost in case the computer crushes down without any backup. This is because digital crypto currency is virtual without a central repository. Crypto currency is also prone to hacks since the system is not sensitive to hacks, having been faced with over 30 hacks since its foundation. The thefts resulted to a loss of approximately 1 million dollars.
Since the security is on the general assumption that the miners are honestly working to maintain the balance, there is a significant risk since some of them may be influenced by desire of fast richness. This may be as a result of breakage of the financial incentive given as an oath or poor communication between the management.
Critically, crypto currency has enabled criminals to evade taxes and engage in the illegal scheme of money laundering having least or no regulation.
Author Bio:- James Tredwell is a Technical SEO at Hopinfirst.com who works with unique problems and advanced search situations. He helps clients improve organic traffic through a deep understanding of Google’s algorithm and Web technology.