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Cryptocurrencies, an overview

Team Veye | 24 Jan 2022

Cryptocurrencies, an overview

Cryptocurrencies and decentralized technologies are booming. Market capitalizations have been soaring and with its global adoption from individuals, corporations, and governments, transaction volumes have skyrocketed.

The term “cryptocurrency” is an amalgamation of cryptography and currency. The cryptocurrency trading community includes people genuinely interested in various applications of blockchain technology and who take informed bets on it.

Cryptocurrency is unique for many reasons. It is a digital payment maintained by a network of computers that uses cryptography to authenticate transactions.

A good cryptocurrency will be decentralized. Decentralized exchanges function as peer to peer exchanges. They differ from centralized exchanges as they enable users to remain in control of their funds by operating their critical functions on the blockchain.

The network participants run software that connects them to other participants so that they can share information between themselves. The decentralization of cryptocurrency networks makes them highly resistant to shut down or censorship.

Cryptocurrencies are normally functional 24 hours a day, 365 days a year. They allow for the transfer of value anywhere around the globe without the intervention of intermediaries.

Bitcoin and other early cryptocurrencies were designed as currency, but later blockchains sought to do more. Bitcoin may be the most traded Crypto, but traders are getting interested in other popular cryptocurrencies as well, like Ethereum, Binance and Dogecoin. Ethereum beat Bitcoin when it rose more than 400% in 2021, breaching the $4000 price.

Blockchain technology represents a profound shift like that of email and web in the 90s and Facebook and Twitter a decade later. It has the potential to create countless opportunities everywhere.

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