Cryptocurrency/History Of Cryptocurrency In my Country And It's major Differences With Other blockchain

in StemSociallast year (edited)

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source:istock
Hello people of Hive! how are you guys doing? it's a weekend, hope you work things out within the remaining few hours.

        INTRODUCTION

Today, I'm glad to be here with full capability to deliver my little experience and research here in stemsocial community today. It's quite knowledgeable to acknowledge our members here and as well our curators who have been performing really well since I joined hive blockchain and stemsocial community. I would like to deliver a wonderful lesson on cryptocurrencies. Hence, I will be writing down my views by on my research; thereby giving my own explanations to what cryptocurrencies is all about, as well as its difference with other conventional financial system, and also how cryptocurrency evolved in my country.

 DEFINITION OF CRYPTOCURRENCY

Following the trends, people always hear about cryptocurrency but just a few number of them know what it is all about. Regardless of those who are in different cryptomarkets, others have little or no knowledge about cryptocurrency . Therefore, we could define cryptocurrency as a formulated and a well-designed medium of exchange in the form of digital assets that enables one or someone to have control over a particular coin choice. Cryptocurrencies also entails a method of computerised database used for storing digital assets that serves as a medium of exchange to private owners, and with a strong security of various coins transactions records coupled with other data verification of transfer ownership.

 CRYPTOCURRENCY AND CONVENTIONAL FINANCIAL SYSTEM

From my own point of view, the basic or fundamental difference between cryptocurrency and conventional financial systems are;

  1. Cryptocurrencies connects buyers and sellers of cryptocurrencies from all over the world where as the conventional financial system encourages exchange between buyers and sellers particularly in one place.

  2. In crypto, user remains the supreme owner- controlling every transaction by themselves while the conventional financial system is centralised meaning that there is a central authority controlling the runs and transactions of users.

  3. Cryptocurrency as a decentralized system has numerous approaches to enhance buying and selling of digital assets while the conventional financial system is owned by the government and also employs organisation to run transactions.

  4. In cryptocurrency market, it's non-custodial as users controls all transactions and there is little or no counterparty risk while centralized exchange has only the government in control.

  5. While crypto uses digital assets stored in a computerized database,conventional financial system uses Fiat or paper money stored in the banks or local treasuries.

    DECENTRALIZATION A BASIC FOR CRYPTOCURRENCY
    

In simple explanation, a decentralized system of exchange is an alternative of the centralized system of exchange. As a decentralized system, it offers a market that connects peer-to-peer buyers and sellers of cryptocurrency.
The following are the reasons for a decentralized system.

-it charges lower fees: here we say that this is a very good reason for a decentralized system as it charges a low fee of about 0.3% for exchange in uniswap.

-A decentralized system is a non-custodial system of exchange where by traders are not agent of control to various custodies or government organisations rather, the traders with the use of their wallets transacts with other traders worldwide.

-Decentralised system encourages privacy as traders are viable and doesn't disclose any important keys to any authority. A trader can transact at any time without seeking for a permission from any central authority.

-A decentralized system encourages diversity in cryptocurrencies; here we mean that traders can engage themselves in different digital assets through peer-to-peer transactions which ensures legal compliance and profitability.

-It is a market for untrusting transactions; this means that traders execute transactions and records are kept in the blockchain for enabling untrusting transactions.

 BASIC ALTERATIONS TO CRYPTOCURRENCY

The following affects cryptocurrencies. They are;

-The first is the rate of Bitcoin mining; it entails in a simple term that when bitcoin miners processes some new block transactions, it tends to add new bitcoins in the market and the amount of these coins introduced in the market newly, slow overtime and affects supply. Also when prices of mining increases, it certainly affect the price of other cryptos.

-The second is Bitcoin competition; with the likes of USDT, cardano, ethereum, polkadot, binance coin prices tend to rise as there's influences among the biggest competitors in the market.

-One other greater influencer of cryptocurrency is the social or public Media; as the name implies, the media has the greatest influence on price of cryptos. Through the media, people get knowledge about a good crypto to invest on. And when new investors enters the market, it will directly has the price of crypto increase or rise as the new investors will also inform his or her friends to do the same.

   CAN EVERYONE BE A MINER?

In my in knowledge, everyone can't be a miner. Coiling from my understanding, mining isn't always profitable, and if we did mine and it's is not profitable then, people will leave because they don't have that hope that they can make good sells when prize rises. Also mining involves risks and when you are not an enterpreneur or a person that cannot bear risks, then you cannot be a miner because mining involves a lot of risks.
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Source:istock

    CRYPTOCURRENCY A TRANSPARENT BLOCKCHAIN

'CRYPTOCURRENCY' has a lot in it but still, activities and actions following all transactions are clear for other users to ascertain. In my own perspective, cryptocurrency transactions are regarded as more transparent because all information in the blockchain are public such that all transactions can be seen by anyone. Hence, it offers users the right to go through transactions thereby limiting surveillance and abuses. Informations of other users can be seen when surfing their profile. It's more transparent unlike other blockchain that are centralized. To an extent, the transparency of crypto-currency assets as seen as a trusted one as all activities can be reviewed by anyone this, it's nit a secret oriented blockchain.
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Source:istock

   CRYPTOCURRENCY DEVELOPMENT IN NIGERIA

The development of crypto in Nigeria came into existence in the year 2009. As the law has it, Nigeria did not envisaged cryptocurrencies into its currency laws and this makes cryptocurrency illegal in Nigeria. Nevertheless, there are many investors In crypto market place that are from Nigeria, but because of the illegality of crypto in Nigeria, the CBN ( central bank of Nigeria) or Central authority regards cryptocurrencies as invalid currency or rather not a legal tender in Nigeria. Due to the decentralization features of crypto and it's cheaper and faster processing features, as well as its fast increase in value, cryptocurrencies has found home in Nigeria.

          CONCLUSION

From the above overstated meanings of cryptocurrencies, as well as it's basic features of having been decentralised, a good analyst would venture into mining and he/she finds him/herself fit for risk bearing propensities and also engage in tradings of some valuable digital assets. As a decentralized system, control is personal and also trustless transactions are publicly made for everyone to see. Good day.

Thank you. I'm your brother @ezeemmanuel

Reference:
-https://googleweblight.com/sp?hl=en-NG&u=https://www.economist.com/news/briefing/21677228-technology-behind-bitcoin-lets-people-who-do-not-know-or-trust-each-other-build-dependable

-https://googleweblight.com/sp?hl=en-NG&u=https://www.wsj.com/articles/which-digital-currency-will-be-the-next-bitcoin-1513679400

-https://www.bis.org/events/eopix_1810/chiu_paper.pdf

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Hi,

Nice write-up on cryptocurrency. You opined as if all coins are decentralized. Do you think this is true as far as crypto is concerned?

Well @gentleshaid what I was trying to explain is the coins that based in blockchain technology. They are all decentralized.

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