Development of Blockchain-Based Cryptocurrency

Abstract

The first-ever cryptocurrency invented was bitcoin (BTC) in 2008. With this, the first-ever blockchain network was launched all over the globe. The greatest advantage that Blockchain backed cryptocurrencies offer is the security and non-dependency on a third-party organization for trust issues. It allows independent verifiability of transactions while keeping the transactions anonymous but recognized by a virtual ID. Blockchains can also process transactions at a much lower cost than banks and other financial companies. In May 2016, when the Blockchain Revolution went to print, the entire crypto asset market had a value of $9 billion. Fewer than two years later, the crypto asset market was $420 billion in size. The development of cryptocurrency faces legal challenges as well. The currency developed has to develop trust among the parties involved in transactions. The blockchain technology is continuously evolving as new consensus algorithms are being developed, which may prove to be better than the currently used algorithms. Many different ways have been introduced to modify the modern-day currency into digital currency such as BTC. However, the trust remains an important factor to overcome. As the government of any country cannot monitor the use of cryptocurrencies, they are hesitant to legalizing them as a regular mode of exchange. Cryptocurrencies are heavily affected by 342 mobilization amongst its users. In case the demand of cryptocurrency comes down to level zero, then the value of it is also zero.