What is cryptocurrency and its advantages

14 Jun 2023

Cryptocurrency has revolutionized the whole field, it offers us new possibilities, secure and decentralized transactions. In this blog we will briefly tell you about the world of cryptocurrencies, explore what it is, how it works and what it will do for our economic future.

What is cryptocurrency?

Cryptocurrency is a digital or virtual form of currency that uses cryptograms for safe and secure transactions. Unlike their parent currencies issued by governments, cryptocurrencies operate on decentralized networks, on solid blockchains. This centralized nature gives cryptocurrencies unique characteristics and advantages.

How does cryptocurrency work?

To understand how cryptocurrency works, we need to delve into blockchain technology. Blockchain is a public ledger that records all transactions transparently and immutably. A governing transaction is stored in a "block" that is written to previous blocks and by the chain.

Cryptocurrencies use cryptographic algorithms to control transactions and the security of new entities. Examples of popular cryptocurrencies are Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Tether(USDt).

Advantages of cryptocurrency:

Cryptocurrencies have several advantages comparing to traditional financial systems:

1. Cryptocurrencies operate on decentralized networks, as far as centralization is concerned, such as banks. This increases transparency, security and the risk of tampering of the protected controller.

2. Security: Cryptography ensures the integrity and security of transactions, making it notoriously difficult for hackers to manipulate or falsify cryptocurrency transactions.

3. Privacy: transactions on the blockchain are transparent while anonymity is protected. No personal information is associated with transactions, which enhances privacy.

4. Global accessibility: Cryptocurrencies transcend borders and are available to anyone with an internet connection. It can enable you to complete international transactions with reduced fees and faster reports.

Cryptocurrency use cases:

Cryptocurrencies are used in a variety of real-world applications, including:

1. Settlement, at facilities (hotel, restaurant, market), in e-commerce, as CityPay.io’s crypto payment system is integrated

2. Peer-to-Peer Payments: Cryptocurrencies act as targeted send and receive bridges without the need for second intermediaries, making transactions faster and more cost-effective.

3. Investing and Trading: Many people invest in cryptocurrencies as a speculative asset class, aiming for price volatility and potential long-term growth.

4. Computer Contracts and Decentralized Applications (DApps): Platforms, such as Ethereum, support flexible contracts and the creation of DApps, which enable developers to create decentralized applications with software functions.

Cryptocurrencies are becoming more and more popular in the world, due to decentralized and security, CityPay.io our high demand POS terminal, E-mail orders or WEB payment system for companies give a competitive advantage by offering a comfortable and fast payment to a new segment where they will carry out transactions in cryptocurrency and will no longer have to exchange cryptocurrency for fiat.