Cryptocurrency is a virtual currency acting as a means to exchange or transact using cryptography so as to make it secure and to control the creation, the use of the creation and the limit up-till which the currency could be made available. A cryptocurrency is difficult to counterfeit because of this security feature. With not being issued by a central authority, cryptocurrency is immune from any government manipulation, or tampering of any kind. And with the use of cryptographic hash functions made sure to keep user data private. Let’s take a deeper look into this world of hashes, mining and see if it’s all chuckles and giggles or whether it has a dark side too!
The idea of an electronic cash system has been since the late nineties and with both centralized and decentralized network acting as the idea for the means of transacting. After seeing all the failed attempts at the creation of a centralized network, Satoshi Nakamoto, an individual or a group, in an attempt to create a peer to peer electronic cash system based on the decentralized network of exchange. Here, in a decentralized network, unlike the centralized, there is no central hub or a central server keeping track of all the transactions, the accounts or all the balances. This makes every single entity connected on the network to do that. Every peer in the network needs to have a list with all transactions to check if future transactions are valid or an attempt to double spend. And with all those entities connected to the network, maintaining a consensus without any central government verifying the legality of that transaction and the order in which the all the previous transactions occurred, stymied the job. Tackling this was what made possible the answers to multiple problems.