Cryptocurrency is an alternative to the traditional currency the entire globe is using. It is a form of logarithmic cash data that was primarily designed for secure online payment, transfer and transactions that was sealed with anonymity.
The crypto world is correlated with cryptography, also known as the art of writing or solving codes. Altcoins uses cryptography to convert distinct information into a code that cannot easily be cracked even by the most experienced hacker. Those codes were used to track online transaction that requires secrecy and utmost security.
Programmers and developers who have the ability to put mathematical theory into computer codes are the ones who are creating blockchain. At first, the basic logic for the creation of digital coins is to create a secure, but decentralized online peer-to-peer fund transfer without the use of third-party payment system like Visa, Paypal, MasterCard that needs interconnection with financial authorities.
In essence, the entry of a token in a decentralized consensus-databases are called cryptocurrencies because the process of keeping consensus data in databases is highly encrypted using strong and effective mathematical codes that was made recognizable only by machines like computers and supercomputers.
What are the transactional properties of a good altcoin?
- It is a must that an online transaction should not be reversed after confirmation. Nobody is ever entitled to do reversals after the confirmation of your transaction or payment. No higher entity has the authority to do it and definitely no hacker can ever overwrite what was already been confirmed.
- Every transaction should be anonymous, no accounts or transaction should be traceable to a real-person identity online. If a particular person needs to transfer funds to a peer online, the altcoin blockchain must protect the identity of the one who transfer and the one who receives the fund. That is the very reason why there were random generated 30-character codes for every Bitcoin user. Those addresses were virtual and should give plain users a hard time detecting the real persona of the receiver.
- Every cryptocurrency transaction should be in a global scope. The transaction should not be in a particular region alone. Everyone who uses that altcoin should be able to send or transact in any part of world, no question about it.
- Electronic transfers using cryptocurrencies should be fast. There were no such thing as instant transaction using cryptocurrencies but at least they have minimal time to process everything under their blockchain. The transfer should happen fast and shouldn’t be taking days or more, if that is the case then avoid using that coin.
- Transaction for cryptocurrencies should be secure. Since the codes in every blockchain are known to be highly encrypted by mathematical codes, there should be no security breach on your transaction especially if you are transferring a good sum of coins.
- Everybody is allowed to access and make transfers when using cryptocurrencies. No government, no financial entities and no other regulating body are entitled to regulate the transfers and transaction made under any coins. That is a major issue with different government across the globe, but this feature is actually a promising one.