Cryptocurrency has become one of the most popular digital assets in the world. With its fast-paced and digital nature, the adoption of virtual currencies has also grown throughout the past few years. But where would we be without cyber money? Cryptocurrency is not only a digital asset but also a medium of exchange or currency. In other words, it can be used to buy and sell things digitally.
This combination of factors has made the cryptocurrency ecosystem so exciting and, at the same time, so challenging for its early adopters. Today, hundreds of cryptocurrencies are in the market with their purpose and use. This has led to several technological improvements across the cryptocurrency ecosystem and CRYPTO ECONOMY NEWS.
This article will talk about the evolution of cryptocurrency as it exists today. We will look at how developers hope to improve the current crypto ecosystem, including blockchain technology and decentralized applications.
Ethereum – the first and most notable use of blockchain technology
The idea of a cryptocurrency was first introduced by a programmer known as Satoshi Nakamoto, who is widely believed to be an alias for one of the inventors. Although Nakamoto never confirmed their identity, the name source code refers to a new type of digital currency termed “Bitcoin.” And it was released in January 2009, eight months before Ethereum got its blockchain network.
When Ethereum was created, cryptocurrencies were using traditional and centralized technologies such as Visa and Amazon Web Services (AWS). Ethereum used an alternative way to handle the transaction and recordkeeping process, which became known as blockchain technology. It also implemented intelligent contracts not tied to traditional legal agreements because they are coded in code. Each block on the Ethereum Blockchain has a unique ID number linked to all other blocks in real-time within seconds.
This linked moment allows all information on any block and every transaction to be verified by a network of computers automatically through open-source software called Ethereum Virtual Machine (EVM). This software creates intelligent contracts that execute computations using cryptography and blockchain technology. In this sense, smart contracts are the software that makes the Ethereum Blockchain possible.
2017 was an excellent year for Bitcoin and other cryptocurrencies. After years of governmental and financial regulatory warnings, many investors who had never heard of cryptocurrency took interest and bought more than they could afford. By mid-December, many cryptocurrencies had skyrocketed in price to new highs. Many in the financial world became so excited that they thought that cryptocurrencies represent an excellent opportunity to make money at a relatively cheap cost because the price varies with demand and supply.
So cryptocurrency prices increased dramatically in mid-December, making their value seem very stable compared to stock or fiat currencies. This perception caused many people to see Bitcoin as a haven during economic instability or political crisis since it is not connected to any nation-state or central bank but instead operates using blockchain technology and smart contracts executed through computer code.