Crypto transactions can be easily done from one account to another account. For every transaction, transaction ID is created and it will be stored in the blockchain which can be later tracked.
What happens in Crypto Transaction?
The keys that move balances around the block chain utilize using a type of one way cryptography, called public key cryptography. The “hashes” which is a key stored in the block chain use a similar type of cryptography. Meanwhile transaction data sent and stored on the block chain is tokenized which has some points of data but doesn’t contain all the original data.
The key to understanding these layers of encryption which ensure a system like Bitcoin’s is found in one way cryptographic functions. The main idea is that crypto currency uses a type of cryptography that is easy to compute one way, but hard to compute the other way without a “key” which means the created key is not guessed by others.
Cons of Crypto currency
- It is difficult to interpret
- Challenges of market fluctuation
- No security in case of loss
- Cyber security issues
- Price volatility
- Potential shortage of resources
- Potential mismanagement
Pros of Cryptocurrency
- Unparalleled Transparency
- Instant and 24-hour accessibility
- Absolute secrecy
- Massive potential for returns
- Short time horizon
- Increased liquidity
Thus, investing or trading in cryptocurrency is at your own risk. It is always advisable to check and analyse investing and trading in any coins. Also many countries now legalised cryptocurrency and it can be used for transactions.
