Cryptocurrency has not been around for very long, but already boasts an immense financial and cultural significance. Not only does it promise to be a force that brings massive changes in global finance and monetary systems, but it has also seeped into popular culture as a keyword for innovation and futuristic development. Here’s a short summary of its history, impact, and the different types you might encounter.
A recent development
Cryptocurrency as a whole is still in its late adolescence, figuratively speaking. It was in 1998 when ‘b-money’ emerged as an anonymous electronic finance system and ‘bit gold’ as a system of decentralized currency was designed. It laid a groundwork for what became the start of the cryptocurrency era to the public – the release of Bitcoin in 2009.
The mainstreaming of cryptocurrency can also largely be owed to the financial crises of the 00s. Trust towards banks and stock markets was at an all time low, people from corporate professionals to daily labourers could feel the pinch, and demand was high for an alternative to the failing financial system.
While Bitcoin was after its release considered to be only for cyber fanatics and shady dealings in the deep web, it and many others have since broken through into the mainstream as a viable alternative to common currencies. Bitcoin gave way to many other developments in the cryptocurrency field and allowed several alternative cryptocurrencies to emerge.
What makes cryptocurrency so attractive to users? It enables users to use and transfer their money globally in fast speeds, without extra fees and rules imposed by various institutions such as banks. Bitcoin owes its success to not only that, but also the technology it is based on – the blockchain.
The blockchain, to put as simply as possible, removes the middleman (the bank or authorities) from the process of financial transfers and leaves it up for the system and the users themselves to deal with. Every transaction made within the system is seen in encrypted form to all users – if anyone were to try and cheat the system, they would be known.
Alongside Bitcoin, you might recognize the likes of:
- Bitcoin Cash
But the list goes on and on, and currently there are over a 1500 cryptocurrencies(https://coinmarketcap.com/), of which the blockchain-based take up the majority.
In recent years, there have been several attempts to create a cryptocurrency that would improve on the blockchain technology. One of the alternatives that later emerged is the DAG-chain. As the name suggests, our own DagCoin is based on this technology.
DAG-chain aims to be more effective and efficient than blockchain-based cryptocurrencies. While the blockchain system is vast, its good qualities like speed and low cost can suffer with an increasing amount of users. DAG-chain, however, does the opposite – as the amount of users increases, so does the speed of transactions. The cost of transactions decreases in turn.
The system is already changing
Regardless of the developments within the cryptocurrency field, it, as a whole, is changing the way we deal with our finances even today. One can safely say that what we see now as the alternative, will be the main option in the near future. The choice is yours – will you get ahead now or tag along later?