Cryptocurrency is a familiar word today, and almost everyone has heard about this virtual medium of exchange. But do you also know how it all began? What was the first cryptocurrency, and when was it launched? What are the main advantages of using cryptocurrencies as a payment method?
To learn the answers to these questions and a few more, read on.
How and Why Did It All Start?
The first cryptocurrency, called Bitcoin, was launched in 2009. It was created by the anonymous crypto designer Satoshi Nakamoto
Satoshi wanted to create a digital cash system that was decentralized, similar to a peer-to-peer network for sharing files. The advantage of such a system was obvious: it obviates the need to have a central authority to verify and approve financial transactions.
In the electronic cash system created by Satoshi, every user on the network authenticates and approves the transaction.
How Did Cryptocurrencies Gain Momentum?
Bitcoin, while hugely popular, had some scalability issues. Precisely because of this, Ethereum, which launched in 2015, literally took the crypto world by storm. Compared to Bitcoin, it offered some significant advantages, such as the following:
Apps connected to Ethereum run without downtime and can’t be shut down
There’s no limit in Megabytes
It is relatively easier to mine Ethereum tokens
Startups can use Ethereum for raising funds
- Smart Contracts
Given these benefits, it’s no surprise that Ethereum is the second biggest cryptocurrency in the world, with a market cap of over $21 billion.
What Are the Main Advantages of Cryptocurrencies?
The three main advantages of using cryptocurrencies for payments are as follows:
No Fraud – Because a cryptocurrency can’t be switched to a third party, the risk of fraud is nil when you use it for payment.
No Central Authority – Traditional payment methods require a central authority, such as a bank, to check and approve transactions. On the other hand, in the case of cryptocurrencies, each and every transaction is verified by all the connected users.
Lower Transaction Fees – This payment system has lower transaction fees compared to conventional payment systems.
What Other Cryptocurrencies Are Popular Besides Bitcoin and Ethereum?
The success of Ethereum proved beyond a doubt that the future belongs to virtual currencies. That’s why in a short time after its launch in 2015, many new cryptocurrencies were launched. Out of these, some disappeared without a trace while some others like Litecoin, Dash, and Neo etc became immensely popular.
Why don’t you have a look at this infographic to learn the names of other successful cryptocurrencies?
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