Cryptocurrencies

Cryptocurrencies represent nearly counterfeit-proof digital currencies that are built on blockchain technology. These can be obtained using cryptography or virtual currencies.

Cryptocurrencies constitute decentralized networks, harnessing blockchain technology that crucially are overseen by a central authority.

This makes cryptocurrencies unique in their function, placing them effectively outside the sphere of influence from any government or central bank.

Such digital currency stems from encryption techniques that are employed to secure the networks which are used to authenticate blockchain technology.

Cryptocurrencies can also accept online payments which are denoted as “tokens.” Tokens are represented as internal ledger entries in blockchain technology while cryptocurrencies depict cryptographic methods and encryption algorithms.

This includes public-private key pairs, various hashing functions, and an elliptical curve.

By design, each cryptocurrency transaction that occurs is logged in a web-based ledger with blockchain technology.

Consequently, these are also approved by a disparate network of individual nodes or computers that maintain a copy of the ledger.

For every new block generated, the block must first be authenticated and confirmed ‘approved’ by each node, which makes forging the transactional history of cryptocurrencies nearly impossible.

Cryptocurrencies Go Mainstream

2009 saw the rise of Bitcoin, which became the first blockchain-based cryptocurrency and has since risen to become the world's most widely traded and valued cryptocurrency.

Since then, many other cryptocurrencies have been launched and grown in popularity in recent years. These are known as altcoins.

Common examples of these cryptocurrencies are Ethereum, Ripple, Stellar, and Dash, among many others.

Cryptocurrencies also promise a wide range of technological innovations that have yet to be structured into being.