cryptocurrency in india

Finance Ministry has recently issued a statement in which the ministery warned the citixens against investing in any form of cruyptocurencies. These cryptocurrencies are not regulated by Reserve Bank Of India. Hence, it possess a great threat ot countries economy. It can be kinked to terror funding, Money laundering, Drug Trafficking and many more odds which are prevailing in our society.

A cryptocurrency is a digital or virtual currency that uses cryptograpgy ofr4 security. Its cryptographic security feature makes it difficult ot countrerfeit. An essential feature of a crypotocurrency, and arguably is its organic nature.As it is not issued by any central authority, therefore it is immune ot government intervention on manipulation.

The first cryptocurrency which grabs public attention was Biotcoin. It was launched in 2009 by an individual or group known under the alian Satoshi Nakamoto. As of September 2015m there were over 14.6 million bitcoins in circulation with a total market value of $ 3.4 billion. Bitcoin's success ha sspawned a number of competting cryptocurrencies, such as Litcoin, Namecoin and PPCoin etc.

One of the most famous nake in the list of cryptocurrencies is bitcoins, but there are many more in the list. Some of the most popular ones are:

1-LITCOIN (LTC):-

   It was launched in the year 2011m was among the initiala cryptocurrencies following bitcoin and was often referred to as ' Silver to Bitcoin's gold.' It was created by Charlie Lee.

2-ETHEREUM (ETH):-

  It was launched in 2015m Ethereum is a decentralized software platform that enables Smart Contracts and Distributed Applications to be built and rin without anyh downtime, fraud, control or intererence form a third party. calls itself " the android of the cryptocurrency world," you can set up an application that enables people to rent out idle storage space on their laptop.

3-Zeash (ZEC):-

It is a decentralized and open-source cryptocurrency launched in the latter part of 2016, looks promising. “If Bitcoin is like http for money, zeash defines itself. It Offers privacy and selective transparency of transactions.

4-Ripple:-

Ripple is a real-time global settlement network that offers instant, certain and low-cost international payments Ripple “enables banks to settle cross-border payments in real time, with end-to-end transparency, and at lower costs.” It is launched in 2012, Ripple currency has a market capitalization of $1.26 billion.

How it works:-

It works on the process of encryption.

When using cryptocurrency as a medium of exchange instead of using a single key for both encryption and decryption,separate encryption keys are used for both. A user generates a pair of keys that are mathematically linked to each other is used for decryption

The public key is shared where anyone with this address can send encrypted information to another party. Once encrypted, the information can only be decrypted with the corresponding private key.     

Decoding the blockchain technology:-

A blockchain is an anonymous online ledger that uses data structure to simplify the way we transact. Blockchain allows users to manipulate the ledger in a secure way without the help of a third party. A banks’s ledger is connected to a centralized network. However, a blockchain is anonymous, protecting the identities of the users. This makes blockchain a more secure way to carry out transactions.

The algorithm used in blockchain reduces the dependence on people to verify the transaction. This technology used for recording various transactions has the potential to disrupt the fanincial system.