Cryptocurrency: Will this make the next generation money or just a fad?
According to Indian Government, the functioning of cryptocurrency is under the ban. Using it would be an act of money laundering. Hence, most of all may not be much aware of it in details. Globally, it is scaling heights of becoming accepted, mostly due to the unparalleled success of Bitcoin. For the past few months in India, cryptocurrency has invited interests as well as criticism associated with it. Before diving into the direct content let us quickly take a look at the concept of cryptocurrency.
The inventor of cryptocurrency, Satoshi Nakamoto on 09th January 2009, said; “Announcing the first release of Bitcoin, a new electronic cash system that uses a peer-to-peer network to prevent double-spending. It’s completely decentralized with no server or central authority.”
A cryptocurrency is a designed unit of the digital cash system to work as a medium of exchange that uses cryptography for securing its transactions, to control the creation of additional units, and to verify the transfer of cash. Satoshi Nakamoto found a way to build a decentralized digital cash system which seemed an impossible task to others.
The invention of Bitcoin in late 2008 became the first decentralized cryptocurrency(“A Peer-to-Peer Electronic Cash System“). It also opposes the centralized electronic money and central banking systems. Moreover, several other cryptocurrencies are in creation. These currencies are termed as altcoins, as a blend of an alternative coin. The need for decentralized control for bitcoin’s blockchain transaction database is to play the role of a distributed ledger.
The latest buzz around cryptocurrency revealed that India’s biggest conglomerate, Mukesh Ambani-led Reliance Group will be venturing into the field of cryptocurrencies. According to reports, it is ready to launch its own cryptocurrency called JioCoin.
Akash Ambani being the eldest son of Mukesh Ambani will be leading a team of a 50-members. This team will work on to develop the blockchain for the new virtual currency. Reliance, the tycoon that broke through the barriers of Indian network system and ruled the telecom market with the launch of Jio in 2016 is aiming high. It also helps them to support their own ecosystem including JioMoney with the blockchain-based decentralized currency.
A number of companies like Burger King, Kodak, Telegram, and Bank of England have either ventured or are planning to introduce their own version of bitcoins. Countries like Russia, Singapore, Venezuela South Korea and Sweden are also eager in captivating government-backed electronic currencies.