Tuesday, September 27, 2022

Crypto currency in the modern world

Crypto currency is a digital currency, which is an alternative form of payment created using encryption algorithms. The use of encryption technologies means that crypto currencies functions both as a currency and as a virtual accounting system. As we need wallet to keep hard cash, we need a crypto currency wallet as well to keep our crypto currency money.
These wallets are somehow different yet similar to bank accounts we have in different branches of banks, as these wallets are software which serves as cloud-based services and can be stored in computers as well as mobile phones. These wallets hold the encryption codes that link to our crypto currency accounts and helps confirm our identity.
Crypto currency comes under many names which we have heard or saw in many popular platforms such as Bit coin, Litcoin, Ethereum. Crypto currencies have been around for more than a decade, the very first crypto currency invented was called e-cash or E-cash, created by David Chaum’s company Digit Cash in 1990, which sadly never went mainstream.
Until, in 2008 a crypto currency called Bit coin was invented by a group of people or unknown person using an identity named Satoshi Nahamoto, and began its implementation on 3rd January 2009.
How cryptocurrency has influenced the world economy
In January 2020, more than 2000 crypto currencies exist. Although crypto currency hasn’t impacted the larger sections of the economy around the world like the stocks market, 2017 saw hundreds of billions of dollars flow in the crypto currency, making its further influence in establishing viable stocks to invest in. Some experts have mentioned crypto currency to be “digital gold” because like any other precious metals or gems, it retains value without the risk of depreciation.
One of the famous crypto currency service company that has made its name since the beginning is Block chain. The number of jobs in the cyber world has improved as more number of professional software engineers is sought after in Crypto Currency Industry.
Some of the few improvements Block chain had done are: It improved financial industries ‘cross border transactions , helped in making smart contracts and resist hacking, companies such as Kodak has intended to launch their own crypto currency to make sure photographers are paid, it has reduced the workloads and fraud while increasing accountability.
Cryptocurrency’s risks: how to counter it?
Crypto currency is the new young and emerging market in the world economy that has made a huge impact on the market, yet still many projects and progress needed to be in the spotlight.
As mentioned crypto currency wallet helps in identifying the user or owner of the linked account and every individual who owns a crypto currency account which has a private to be kept for signature transactions, transfer from across borders, make contracts, and much more. As such one must keep a store of backup keys in case of an accident if one loses the key.
In a world where technology is a must to learn for self-awareness, employment, education, and transactions. Hackers are an influencer and prompt to spread among young minds in the real world, the cyber world filled with cyber criminals is even more dangerous as they can ruin major companies, and banks, and breach national level security.
Crypto currency being like a newly born is vulnerable to such attacks from hackers and scammers who will corrupt and have a downward effect on crypto currency.
As crypto matures, there will be a lot of achievements in the long run as stability in making easier transactions, store more values that will make it more efficient used in business and even government, making use of it in everyone’s everyday life. Although some parts of the world have yet to see such technology but that doesn’t stop the progress, as it will spread further making use of crypto currency and its advantages. It will be adopted by many.
There will be some who are skeptical about it but at the end, as time progresses and with its acceptance, the future of crypto is sure to bring a step towards a better future.
Imsuren & Thangoumang, BA 1st Semester, Economics Honours, Immanuel College