Millennium Magazine_7th Ed

THE BASICS OF CRYPTOCURRENCY ack in 2009, Bitcoin became the world’s first cryptocurrency. However, the currency did not become mainstream until 2017, when its potential was fully realized. How- ever, what exactly is a cryptocurrency, and why is it so important? Simply put, cryptocurrency is a decentralized digital currency. Decentralization denotes a purposeful redistribution of power in such a way that there is no dominating authority. Like other currencies, cryptocurrency is used to purchase a wide variety of goods and services online and offline. Now in 2021, you have heard of Bitcoin due to its widespread popularity, but there are over 7,000 different cryptocurrencies to date, each with their own value. Many people choose to invest in cryptocurrencies, given the potential for substantial gains in a short amount of time. The decentralized nature of cryptocurrency has proven to be a huge selling point, as its natural encryption provides unparalleled security. This security is achieved through cryptography, a process by which information is safeguarded via a series of complex codes and algorithms. Because of cryp- tography, it is almost impossible to commit any number of fraudulent crimes with cryptocurrency. Cryptocurrencies maintain their security by keeping a detailed record of every purchase, compiling them in a universal ledger known as a blockchain. Each transaction is grouped in “blocks,” which connect to a “chain” of other recent transactions. Essen- tially, “blocks” are like the pages in a book, and a blockchain is a collection of those pages, a complete book. Because of blockchains, collective transaction records are available to all cryptocurrency users. However, it is important to note that these transactions are documented in code and checked for fraud before being added to the blockchain, ensuring security. Although cryptocurrency has become popularized in recent years, the currency has not yet been fully integrated into mainstream commerce. Although some well-known companies such as PayPal and Robinhood offer options to buy and sell Bitcoin, they are among the minority. However, cryptocurrency will likely become fully integrated in the coming years, assuming continued growth. Until then, many websites allow users to purchase gift cards with cryptocurrency, which is used like any other gift card. Additionally, cryptocurrency can make an excellent investment option, given the potential for high returns. Ultimately, cryptocurrency is quite new, and it will take the world some time to adjust. In the meantime, it is important to learn about this new digital currency since it is quite likely the future of commerce.