Cryptocurrency – The Decentralized Digital Cash System
Every now and then the modern world gets accosted with new phenomena that take everybody by the storm. Such inventions and discoveries elbow themselves into the annals of history. One such invention that has exploded into humanity in the past decade is the concept of cryptocurrency. Turkish for crypto currencies and their values is kripto para birimleri. Cryptocurrency was not an invention in itself. Rather, it happens to be simply a side product of the invention of Bitcoin, which was created by unknown inventor Satoshi Nakamoto.
In late 2008, Satoshi Nakamoto claimed to have developed a peer to peer electronic cash system. His aim was to create something like a digital cash system that no one had been successful in creating ever before. Cryptocurrency is even touted as the revolutionary child of the 21st century or the currency of the future. Cryptocurrencies kripto para birimleri are gaining stupendous importance in private international markets, although it will take more time for government offices and banks etc. to open up their doors into this sort of currency dealings.
Cryptocurrency is a decentralized digital cash system. It has no central entity. It is more like a peer to peer network for file sharing. Let us try to understand how this system works. When we talk about digital cash the first thing that comes to our mind will be how to realize this kind of cash. To realize the cash a payment network with accounts, transactions and balances need to be in place. Next, there is the problem of guarding against double spending. Usually, in centralized networks the central server maintains the records about balances.
On the contrary, in case of cryptocurrency there no central server to do this job. Consequently, it becomes the responsibility of every individual entity within the network to do this job of maintaining records. For this all entities had to be in absolute consensus. In such a case, unless all the entities are in consensus there is the risk of the chain breaking down and endeavours reaching a dead end. Satoshi Nakamoto effectively solved this problem of requiring every entity of the network to be in consensus. He gave the world a form of cryptocurrency where consensus would be achieved even without a central authority.