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A TOUR AROUND THE WORLD OF DIGITAL CURRENCY

Thomas Carper, US-Senator said and I quote, "Virtual currencies have captured the imagination of some, created fear among others, and confuse the hell out of the rest of us." Cryptocurrency emerged as a side product of another invention. The inventor of the first cryptocurrency, Satoshi Nakamoto didn't have the intention of inventing a currency. According to him, he said he had developed a peer-to-peer electronic cash system.

Despite the several failed attempts by some people to create digital money such as Digicash in the nineteenth century, Satoshi built a decentralized digital cash system without a central entity. This gave birth to the first cryptocurrency, Bitcoin. Basically, we can refer to cryptocurrencies as limited entities which are present in a database that no one can change without fulfilling some conditions.

Each peer has access to the complete history of all transactions. Once a transaction occurs, it is broadcasted almost immediately in the network using a basic p2p –technology. However, confirmation of transactions which can only be done by miners is a critical concept takes a while to be completed. An unconfirmed transaction remains pending and can be forged,but once a transaction is confirmed, it becomes irreversible and unforgeable. Confirmed transactions are part of an immutable record of historical transactions of the blockchain