Cryptocurrency : Age of Digital Transition
What is virtual currency?
A virtual currency is a digital depiction of value that can be digitally traded and functions as (a) a medium of exchange, and/ or (b) a unit of account, and/or (c) a store of value, but, unlike fiat currency, it is not legal tender and does not have the backing of a government. A cryptocurrency is a subgroup of virtual currencies, and is decentralized, and protected by cryptography.
It is a virtual currency, which users buy and store in digital wallets available with them, and use it for transactions on a decentralized network that is not controlled by any bank or a government. Bitcoin is among the best-known cryptocurrencies. Cryptocurrency is powered by a technology called blockchain, which functions like an open ledger that gets updated in real-time. Each transaction on a blockchain network is preserved and reversing it is impossible. Because data are encrypted, cryptocurrency is supposed to be highly secure and anonymous.
Like all cryptocurrencies, Bitcoin functions in the same way as cash or gold, but it can also serve as a certificate or bond, a clearinghouse, a settlement layer.
Like gold, Bitcoin is “mined”, though, by a giant, power-hungry computer, which is today thought to be collected using more power than many European countries.
In essence, Bitcoin miners need to solve the complex mathematical problems needed to verify transactions and thus build the blockchain.
Facebook announced plans to launch a digital currency to bring the world closer together through the network. Over the past month, that mission has gone badly off course.
The Libra cryptocurrency project now faces continues threats from world leaders and central bankers worried about its harmful potential: as a mean for money laundering, a threat to global financial stability, open to data privacy abuse, dangerous for consumers and stripping nations of the control of their economies by privatizing the money supply.