BLOCKCHAIN AND CRYPTOCURRENCY

 BLOCKCHAIN AND CRYPTOCURRENCY

Cryptocurrency is simply the first and the most important application of blockchain technology, Thanks to blockchain technology, cryptocurrencies can build a non-traceable secure path once a payment transaction is generated on the internet. In contrast to the traditional currency which always required a central trusted party (for example, a central bank) to guarantee transactions, the cryptocurrency that is based on blockchain technology creates a digital online system of certification for payment transactions without any central authority, thus making it very discreet. Looking back at history, people have been looking for alternative payment solutions for decades. In the 1990s, eCash was introduced by DigiCash c, which probably should be considered as the first digital currency similar to the current cryptocurrency. However, it did not survive the 2000 Internet bubble. Since then, numerous digital payment solutions such as Apple Pay, Google-Pay, and PayPal have been introduced. However, digital currencies are still based on conventional fiat currency and are mainly used for e-commerce. Cryptocurrency’s promise to offer a new type of currency built on blockchain technology and supported by cryptographic proof instead of trust. Some consider blockchain technology as “the trust machine” and cryptocurrency is definitely the most notable example. It solved the issue that a third party was always required when using an alternative payment solution instead of cash. There are currently more than 1000 types of cryptocurrency. Among all of them, Bitcoin is the most popular and also the first birth of cryptocurrency that is built on blockchain technology