In simple words, Cryptocurrency is defined as a type of digital currency that exists electronically or virtually and uses cryptography to secure transactions.
The cryptocurrency doesn’t rely on banks or any other central authority to verify these transactions. It doesn’t have a central issuing or regulating authority. It uses a special type of decentralized system to record transactions. Cryptocurrency is a P2P(Peer-to-Peer) system that allows anyone anywhere to send/receive payments.
How Does The Concept Of Cryptocurrency Work?
Let’s see how it works:
Cryptocurrencies make use of distributed public ledger called a blockchain to run. When users transfer the cryptocurrency funds, their transactions are recorded in this public ledger (Blockchain). A blockchain consists of a record of all the updated and held transactions by currency holders. A mining process is used to create units of cryptocurrency.
What Are The Examples Of Cryptocurrency?
Bitcoin(First Cryptocurrency)
The first cryptocurrency was Bitcoin. It was founded in 2009. It was created by Satoshi Nakamoto- which is a pseudonym for an individual or group of people whose identity is still unknown.
Ethereum
It is defined as a blockchain platform that has its own cryptocurrency known as Ether(ETH) or Ethereum. In the year 2013, Ether(ETH) was conceived by Vitalik Buterin.
What Are Some Of The Real-Life Examples Of Cryptocurrency?
Given below are some of the real-life examples of Cryptocurrency:
1. Enable Users Access To Crypto-investing
A 13-year old student named Gajesh Naik of class 8, People’s High School, Panaji has created two decentralized applications on the polygon network that provides users access to crypto-investing:
PolyGaj(GAJ Finance): one-stop decentralized finance (De-Fi) and non-fungible token (NFT) platform
StableGaj: It is a special type of decentralized stablecoin swap that provides stablecoin exchange.
PolyGaj is a DeFi(Decentralized Finance) protocol that is built on the Polygon blockchain. It has accumulated $7 million in cryptocurrency. US billionaire Mark Cuban has also invested in the Polygon blockchain.
To spread awareness about cryptocurrency, Gajesh Naik has made a youtube channel that consists of explanatory videos about crypto. He has gathered around 15.8K subscribers from across the globe.
2. Earning Through Crypto-Mining
Crypto mining is defined as a process using which new units of digital currency are created and introduced to the market. It is the process in which specialized computers validate blockchain transactions for a specific cryptocoin. In return, these specialized computers will receive a mining reward for their computational effort.
Crypto mining offers money-making opportunities. You will be surprised to know that two Indian-American siblings Ishaan(14) and Aanya(9) are earning $30,000 a month from crypto mining. They learn about this new technology because they have a zeal to learn from an early age. They watched instruction videos on Youtube and other platforms.
In an interview with CNBC, the two siblings told CNBC that they initiated their crypto mining journey with Ethereum and now they do mining for 2 types of cryptocurrencies such as Bitcoin and Ravencoin.
3. Crypto-based companies like CoinSwitch Kuber
CoinSwitch Kuber is the largest cryptocurrency platform in India that has accumulated nearly 8 million users since June 2020. It was founded in 2017 by Vimal Sagar Tiwari, Govind Soni, and Ashish Singhal. Initially, back in June 2020, they started as a global aggregator of cryptocurrency exchanges that with time turned out into an exclusive crypto platform .
It provides investors a choice to choose from over 100 digital tokens that are available on the platform. The settlement is carried out in rupees and the interested investors can spend as low as Rs. 100. The interested users have to complete the KYC(know-your-customer) procedures in order to access the pooled liquidity of cryptocurrency in India and to get the most suitable rate.
What Is The Scope Of Cryptocurrency In India?
As per studies, the cryptocurrency adoption of the cryptocurrency market has increased by over 880% between June 2020 to June 2021 worldwide. If we talk about the statistics in India then you will be surprised to know that within a year the nation has experienced a growth of about 400%.
In India, around 15 million people have made an investment in private cryptocurrency holdings. There is a fascination in young people about cryptocurrency adoption. As per Finders, the young generation belonging to the age group of 18 to 34 that consists of more than 40% of users throughout the world.
How AI Is Used To Transform The Cryptocurrency Market?
AI & ML helps investors and traders to make sense of their investing. The cryptocurrencies are based on blockchain technology, AI can be used with blockchain to do the following things such as:
- To get more accurate predictions.
- For doing sentiment research on the crypto markets
- For Automated Trading.
- For superior investment insights.
- For the purpose of market manipulations detection by monitoring multiple signals.
Artificial Intelligence is a very versatile technology that touches each and every industry up to some extent. Thus, in order to keep up with innovative technologies like Cryptocurrency, one has to gain knowledge about Artificial Intelligence. Thus, it is high time to teach young minds about AI from an early age so that when they grow older, they will use the knowledge to their advantage.
Summing Up!
We have discussed cryptocurrency and learned about its scope in India and around the world. Also, we have learned about the power of AI is transforming the cryptocurrency market.
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