Cryptocurrency is a digital finance system that does not involve banks in verifying transactions. It is a peer-to-peer system that allows anyone to send and receive payments anywhere. Cryptocurrency payments exist digitally in an online database describing specific transactions, called a blockchain. A blockchain is similar to a bank’s balance sheet or ledger. However, a crypto blockchain is distributed across digital currency’s entire network participants. Cryptocurrency uses cryptography to verify transactions. The purpose of encryption is to provide reliability and security.
How it started
The first cryptocurrency, Bitcoin, was launched in 2008 by a mysterious anonymous Satoshi Nakamoto. It remains by far the biggest, most influential, and best-known. Since 2009, over $7 trillion worth of Bitcoin has been transferred. Also, Bitcoin has even outperformed global stock indexes, generating a 132% return YTD.
Soon after bitcoin, other cryptocurrencies using their blockchains such as Ethereum and Solana appeared. Ethereum has become a constructor program for all new DeFi apps that bring traditional finance tools to cryptocurrencies.
Cryptocurrency has gone from a payment system to a significant multifunctional financial ecosystem that involves Web3 and Metaverse. In five years, the total market cap has increased by about 5000%.
What about now?
Despite some countries’ new laws, cryptocurrencies remain mostly independent of government agencies. Plus, the abundance of applications and new platforms has made it possible to bring the cryptocurrency market closer to the mainstream and make the technology clearer for most people. Sema has appeared as an app that helps even beginner users to trade and invest.