Cryptocurrency, like any other form of money, is the system by which goods and services are traded in the financial world. A good way to explain it is that it is a way of converting one currency into another. This is done through a process known as ” cryptography”, which includes such methods as transfer of public key information, public key infrastructure (PKI), digitally signed documents, and digital certificates. There are several different forms of cryptography. For instance, Digital Certificate Infrastructure (DCA) is the backbone behind the issuance of many online certificates such as credit cards, and online banking capabilities. Digital Certificate Authority (DCA) is also used for digital signatures, secure remote transactions, mobile computing, and secure remote connections to networks and servers.
Decentralized ledger technology and blockchains make up the underlying principles on which Cryptocurrency is based upon. The core components of the Cryptocurrency system include: a distributed ledger, computers, and a network of peers. A decentralized ledger technology allows for trustless and completely secure peer-to-peer transactions, while ensuring that data and communications can be monitored and recorded at any given moment in time. Blockchains are networks which use matrices and digital proofs to ensure that the integrity of the transactions are protected against hackers and other risks.
One more aspect of Cryptocurrency is that there are no known external causes of risk or losses. This is unlike traditional economies or physical asset classes, such as gold, oil, and silver which typically have to be stored at immense depths of water in order to maintain their value and maintain their safety from loss. With Cryptocurrency however, the storage and transfer of these assets occurs between network nodes, and is not at all susceptible to natural disasters or other forms of damage. While it is unknown how long the future generations will have to spend storing their gold and silver in order to maintain their financial position in the Cryptocurrency age, the future is unknown for now.