Exploring the World of Cryptocurrency: Bitcoin, Blockchain, and More

Cryptocurrency refers to “digital values that enable cryptographically secure transactions and the supply of additional virtual money.” Cryptocurrency is a brand new alternative currency. They are also digital and virtual. Cryptocurrencies, unlike currencies in the banking system, are decentralized. That's why transactions are carried out by a system called block-chain. Cryptocurrencies cannot be produced by governments or companies, so they should be considered completely separate from currencies issued by central banks of governments. Since there is no structure in crypto currencies that acts as an intermediary as in the banking system, there is no element of mutual trust. However, when examined from a system perspective, since it is a reliable system, nothing that would pose a problem in terms of transactions arises.

Cryptography was created to secure monetary transactions and provide a control mechanism for this. So, cryptocurrency is a digital currency. Many cryptocurrencies are designed to be produced less and less over time. The reason for this is the creation of market value. The situation is different in the central banks of the states. Because it prints money whenever it wants. However, in the bitcoin market, a maximum of 21 million units are converted.

Cryptocurrencies are a payment system based on cryptography. Although these transactions are not legally supported by the government, they enable mutual digital exchange. These are, in a sense, computer files. The most well-known among crypto currencies is bitcoin. It plays an important role in the popularity and development of this currency around the world. For this reason, when it comes to cryptocurrency, a few of bitcoin and altcoins should be explained in detail. The reasons why this currency, whose development has become widespread especially in recent years, is popular among people should also be investigated. Bitcoin and Blockchain Bitcoin is a virtual currency where transactions are made over the internet and is not affiliated with any central authority or intermediary institutions. Individuals or institutions can use this virtual currency, spend and accept money, just like they do with real money. The number of bitcoins in circulation to date is around 11.8 million. The emergence of Bitcoin was made by someone named Satoshi Nakamoto, who sent a notice to the mail group about cryptography in November 2008. In this declaration, it is defined as a system for electronic transactions between spouses without the need for a third party. It emerged in January 2009 with the publication and production of the first open source bitcoin.

Advantages of Bitcoin

• There is no time and space limitation.
• The person can carry out the transaction whenever he wants, and the transaction is completed easily without the need for places such as banks or ATMs, without a physical location.
• Although the transfer is very fast, it is very easy to store it with a virtual wallet. International transactions are possible not only across the country but also almost anywhere in the world.
• Apart from this, there is no such thing as being affected by the economic problems of countries. There are no fees and commissions as in normal banking transactions because they occur directly, as in the above transactions, without a central authority.
• Additionally, there is no lower limit on payments.

The transaction process above is intended to express the basis of the transaction found in all crypto currencies. The concept of blockchain is the structure that enables these transactions to be carried out. As a database, data is saved in blocks. When a block is full, it moves on to the next block. Blocks are connected to each other. A separate block is created for each cryptocurrency. Because this block is, in a way, like accounting records. Each blockchain has its own rules. These rules have rules about many issues such as the size of the blocks, what to do when the block is full, how to produce a new block, how to store and track it. The more secure the rules of this blockchain are, the higher the interest of people will be. Because reliability and usability are the elements that attract a lot of attention.

Advantages of blockchain technology

• The trust element creates trust for users as it is dependent on multiple nodes and a complex mathematical understanding, rather than being dependent on individuals or institutions.
• In accordance with the blockchain structure, it contains the necessary elements for storing personal data for users.
• Apart from the central control structure, it is a decentralized structure that carries out its own control.
• The operation of the system is not through a few authorities, but can continue to operate thanks to many users.