Many attempts in the past happened to create an online currency, just to name a few:
- Ecash is a sort of cryptographic electronic money that was conceived in 1983 by American cryptographer David Chaum.
- In 1996, the American National Security Agency published a document named “How to Make a Mint: the Cryptography of Anonymous Electronic Cash”
- The best-known crypto, Bitcoin, is a secure, decentralized currency that has become a store of value like gold. It was created back in 2009 by Satoshi Nakamoto
The term “cryptocurrency” is a combination of cryptography and currency.
Let’s explain each term.
1. Definition
Currency: A currency is the standardization of money/value in any form, in use or circulation as a medium of exchange, store of value, and unit of count. Most currencies nowadays are created and owned by Central Banks all around the world.
Cryptography: in simple terms, that is the use of cryptographic techniques to secure transactions between users. The technology used in the cryptocurrency is mainly: Blockchain
Cryptocurrency: A digital currency that is used online as a medium of exchange and where all transactions are verified and recorded in a decentralized system in most cases using blockchain technology.
2. Characteristics
The main things that make a cryptocurrency different from any other currencies or assets are the below:
- Virtual: the currency itself is not tangible, doesn’t have a physical representation
- Not issued by any bank, institution: There is no governing authority or a party looking after the network or the transactions
- Value is ensured by its costing: Supply and Demand are the major factors
- Digital Asset: only available online
3. Comparison between Fiat and Crypto
Fiat money has no intrinsic worth; it only has value because the governments declare it to be legal tender.
Fiat money has an unlimited supply in theory because it can be issued at any time. Most cryptocurrencies will only create a certain number of coins. For example, Bitcoin will have only 21 million in supply and this amount cannot be changed nor replaced. The current circulating supply is 19.24M.
Nowadays, you can use cryptocurrency to buy stuff just like the fiat (USD, EUR, SAR, AED).
4. Sphera Tokens
In SpheraWorld we are working on developing a native cryptocurrency that will be the powerhouse of the platform. The token will have a limited supply and will be given to the early adopters who join SpheraWorld. It will be based on the Hedera technology explained in the last article.
The token will have multiple utilities and benefits for its holders. More details will be communicated soon.
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