A cryptocurrency is a form of digital currency that has seen its popularity rise in the past couple of years. If you ask any cryptocurrency enthusiast, why do they like and support it so much? Almost 9 out of 10 people will give you the same answer. It is one of the most if not the most secure currencies in the world.
What gives cryptocurrency its security?
Cryptocurrency does not depend on banks to verify the transactions before it is transferred from one person to another. The currency is directly moved from one person to the other. There is no middle man or third party in cryptocurrency. Cryptocurrency is managed by blockchain technology. Blockchain technology is what allows cryptocurrency to be as secure as it is.
Blockchain technology is heavily dependent on cryptography which gives the currency its name. It also relies on mathematical models.
The decentralized nature of the technology makes it more trustworthy than anything else. The records of each transaction are noted on a public ledger that is available for everyone to see. If you are a cryptocurrency owner, you can check the ledger at any time that you wish.
The public nature of the records also makes it impossible for anyone to change them. Suppose, a fraudulent person wishes to sneak some coins into his account without purchasing them. He can access the public ledger from one device and change the records to suit his needs. But this record will not match the transaction records on the rest of the devices all across the globe. Therefore, he can never cheat his way through this system.
If he wishes to cheat, then he has to change the public ledger on every device which is virtually impossible.
Cryptocurrency also gives its owner pseudo-anonymity. Although the transactions do not have his name or personal details on them. The unique number is linked to his information. If, somehow his unique number becomes known to people. Any transaction he makes from thereon can be linked back to him through that number.
Although a third party is not essential. You can take the help of one like bitcoin hosting organizations that will help you properly manage your cryptocurrency.
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