There is not one person in the financial world that hasn’t heard of cryptocurrency and considered investing in Bitcoin.
Bitcoin was developed back in 2008 and it was originally valued at just $0.0008. In 2010 it saw its first big jump to $0.08 and from there on in, the currency exploded. Had you invested just $1 back in 2010, you would now be sitting on around $750,000 right now.
Despite this, many people are still unsure of how it works. Yes, they know what it is and they know its investment potential, but have no clue as to how it actually works as a currency. It all starts with a technology called Blockchain.
Understanding Blockchain Technology and Software
Bitcoin works on a technology called Blockchain. This is the decentralised LEDGER system where it is created, stored and traded. It works in such a way that it is practically impossible to hack or cheat the system.
As the name suggests, the technology stores the data in blocks and these blocks are then chained together. Each transaction made on the network is stored on a block and these are chained together in chronological order.
Crypto Mining
The process starts with mining the cryptocurrency. As such, crypto mining software is used to create a new cryptocurrency and add to the blockchain. After it is mined, the new cryptocurrency needs to be validated. It is then owned by the mining part as a reward for adding to the blockchain. Mining technology requires a powerful computer processing system in order to find new blocks.
Crypto Custody Software
This is the software that is used to store the cryptocurrency and keep it safe. This relies heavily on private key encryption which ensures the long term privacy of the assets.
Crypto Exchange Platforms
These exchange platforms allow people to trade their cryptocurrency with other physical currencies or digital assets. These exchange platforms offer users complete anonymity, but also allow for total transparency for both parties. They also allow companies to trade internationally and to cut down on or avoid transaction fees altogether.
Cryptocurrency Payment Applications
These allow businesses to accept cryptocurrency payments from customers in return for goods and services. Businesses can use these to accept payments from all across the world and offer complete security due to the nature of blockchain transactions. The crypto payment app allows a customer to make a payment in cryptocurrency which then goes through a payment gateway at a set exchange rate. This will then convert to a more recognised physical currency which will help the business avoid the high volatility associated with cryptocurrencies.
Crypto Wallets
This is where bitcoin owners can securely store their bitcoin or cryptocurrencies. Not only do wallets help keep your cryptocurrency safe, but they also allow customers to receive and trade in cryptocurrencies such as Bitcoin, Ethereum, Bitcoin Cash etc.
The development of crypto software solutions is growing as it becomes more mainstream. These all work together to help investors understand the latest algorithms and generate profit.
