What is the Future of Cryptocurrency?

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What is the Future of Cryptocurrency?

The underlying technical system upon which decentralized cryptocurrencies are based was created by the group or individual known as Satoshi Nakamoto. As of March 2015, hundreds of cryptocurrency specifications exist; most are similar to and derived from the first fully implemented decentralized cryptocurrency, bitcoin.
(Source: https://en.wikipedia.org/wiki/Cryptocurrency)


Overview of current Cryptos traded on the market:
 

https://www.coingecko.com


The market of cryptocurrencies is fast and wild

Nearly every day new cryptocurrencies emerge, old ones die, early adopters get wealthy and some investors lose money because they joined to late or hopped on an already dead horse. Every cryptocurrency comes with a promise, it’s usually a big story to turn the world around. Yet few survive the first months, and most are pumped and dumped by speculators and live on as zombie or ghost coins until the last bag holder loses hope ever to see a return on his investment.

Markets are crazy and unpredictable. But this doesn‘t change the fact that cryptocurrencies are here to stay – and most likely here to change the world. This is already happening. People all over the world buy Bitcoin to protect themselves against the devaluation of their national currency. Mostly in Asia, a vivid market for Bitcoin remittance has emerged, and the Bitcoin using darknets of cybercrime are flourishing. More and more companies discover the power of Smart Contracts or token on Ethereum, the first real-world application of blockchain technologies emerge.

When it comes to the future of money, there is a growing consensus that cryptocurrencies are set to play a major role. One cryptocurrency, in particular, has entered the public lexicon as the go-to digital asset: Bitcoin. But the cryptocurrency market is significantly more complex than the public lexicon might suggest. And while there have been plenty of studies examining the role and future of Bitcoin, there have been few that explore the broader cryptocurrency market and how it is evolving.

 

The big challenge with digital currency is to prevent unauthorized copying

Cryptocurrencies use two mechanisms to prevent this. The first is to publish every transaction in a public record and to store numerous copies of this ledger online in a way that allows them all to be automatically compared and updated. This prevents double spending—using the same bitcoin to buy two different things.

The second mechanism is to protect the ledger cryptographically. Every update collects together a range of new transactions and adds them to the existing ledger. But to do this, the earlier version of the ledger is first frozen and encrypted.

The new version of the ledger—called a block—includes the encrypted copy of the earlier ledger. Anybody can use this encrypted data to generate a number that can be used to check the veracity of the block. However, it is extremely hard to generate this number computationally in an attempt to game the system. It is this feature—that the blocks are easy to check but extremely hard to copy—that secures the system. Of course, as the ledger continues to be updated, new blocks must be created, piggybacking on the old ones and creating an unbroken chain of blocks. Hence, the term blockchain technology.

Bitcoin is by far the most famous of these cryptocurrencies. It is also among the oldest, having first emerged in 2009. But it is by no means the only cryptocurrency. So an interesting question is how the cryptocurrency market will be evolving. The revolution is already happening. Institutional investors start to buy cryptocurrencies. Banks and governments realize that this invention has the potential to draw their control away. Cryptocurrencies change the world. Step by step. You can either stand beside and observe – or you can become part of history in the making.

 

Sources:
https://www.technologyreview.com/s/607947/the-cryptocurrency-market-is-growing-exponentially/
https://www.coingecko.com/en
https://blockgeeks.com/guides/what-is-cryptocurrency/