What exactly is it? Experts Talk- Part 1/5
One of the most popular terms in the digital world presently is Cryptocurrency. People are shopping with cryptocurrency and the serious investors are investing in it. Still, there is a long- LONG, way to go before Cryptocurrency is widely accepted. But the initial response is encouraging and there has been a steady rise in the percentage of people who love and actively use Cryptocurrencies. However, there are still many concerns, questions, and misconceptions regarding Cryptocurrency. So we decided to meet someone with authority who can simplify the things for us. After finding many names over the net, the one that seems much better than others was Mr. Amit Pandey. He has got experience, expertise and a knack for explaining the things lucidly.
We decided to meet Mr. Amit Pande, a Blockchain expert who has been benefitting the industry for more than 5 years now. Besides, is also working as a Cryptocurrency expert for the technology company https://www.cmswebsiteservices.com that is soon launching the API services for BlockChain and cryptocurrency. He started out his career as a Cryptocurrency teacher when he designed is own unnamed Cryptocurrency beginners course for his students. Later on, he joined https://www.cmswebsiteservices.com as a BlockChain expert and of late he has started actively helping/guiding the company for developing Cryptocurrency API. He has been an active cryptocurrency trader for the last 2 years. It has equipped him with the blend of teaching, professional as well as practical knowledge.
“That’s not possible, believe me!” He says. “Actually I find explaining BlockChain and Cryptocurrency closer to teaching someone how to swim, or how to ride a bicycle. For me, there aren’t any set rules of teaching. I teach once and tell my students to practice again and again, even if they don’t understand the concept. It is during those practice sessions the one come up with a Voila! Or Eureka! He somehow unties a knot and a large portion of the puzzle is solved. So, it is less of theory and more of practice.”
What is Cryptocurrency?
Amit explains “Cryptocurrency is a decentralized peer to peer electronic cash system that does not use a central server or a controlling authority. As opposed to the traditional currency where a ledger is maintained by the central authority, the Cryptocurrency uses public ledger known an s Blockchain. It enables every network member to see the account balance/transactions between different members. However, the transactions only include the public keys of both the parties and the amount.”
So, doesn’t it put the members at the risk?
“Absolutely not”, Amit smiles “No contact details or crucial information like email, phone number or name is revealed. It is mandatory for the sender to sign off each transaction using the private key. Each transaction should be confirmed before it can be a cryptographic puzzle needs to be solved.”
Ok so who solves the puzzle?
“Miners”, he says “Only the miners are entitled to solve it. Once the puzzle is solved the transaction is added to the database by every node of the network. Once confirmed the transaction is irreversible. Any transaction is first broadcasted on the network. The miners get an award each time they solve a cryptographic puzzle. As the intricate cryptography is used to build the consensus hence it is called cryptocurrency.”
Well, half of the things (or more than that!) went over our head!
“Leave the definitions and jargons”, Amit suggests looking at us. “Let me explain the things using examples. I will give you 10 examples and by the time I finish you will understand some of the things. You may have many questions while I am explaining. Just write them down. I will clear them later.” He says and emphasizes “Remember- Theory tells you 20%, Examples 30% but rest 50% you need to learn the old traditional way practice, hit and try or just rack your brains. E=MC2 is not as simple as it might sound to some with a little knowledge of physics.”
Sigh! So, this is another “Theory of Relativity”. Well, let’s brave on. Here are the examples that he used. The first few seemed too simple to explain something tangible but the latter half was really good:
Here are a few basics revisited that may help us to understand the example better:
- The Bitcoin address is entered randomly that is presented as an intricate series of letters and numbers. Private Key it is also similar in format but it is not revealed to the three users.
- While your bitcoin storage is there for everyone to see, they cannot steal your bitcoins as it needs the private keys for opening
- While sending the end needs to use the private key of signing the message. He also has to enter the input (or the source of the transaction) amount and output. A private key is needed to sign a message with input (or the source) total amount and the output
- The receiver then sends the bitcoins to the bitcoin network so that the miners can verify the transaction and the deposit the same it the transaction blog. Eventually, the block will be solved.
- The mathematical equation needs to be solved in order to validate any transaction
- As mining may take some time you need to have patience.
- …………………………………………………………………………………………….To be continued