Cryptocurrency, Decentralized Financial System and Mining.
Fundamental difference between Cryptocurrency and the conventional financial system
We are using conventional financial system for many years. But now it is the world or era of Technology. In this technological advantage world, we have some other system which is very much convenient compared with the conventional financial system. The digital currency or cryptocurrency is the the modern and best alternative of conventional financial system. I am going to share the fundamental differences between this to then hopefully you will understand why this one is very convenient for this modern world. Source: https://pixabay.com/ The fundamental difference is the intermediaries. Conditional financial system must have a central entity for the transaction. Most of the cases bank is the intermediaries and through this channel we transfer money from one person to another person or organization to another organization or in many ways. But in cryptocurrency there is no intermediaries. It is peer to peer-based transfer system which don't need any intermediaries. As there is a absence of a party obviously it is very much convenient, easy operation, less time consuming, less hassle, less fee (even no fee), no strict regulation, No Country boundary, no timing etc. Most of the cases the intermediary is takes fees from us for this kind of transaction. But here year the computer system which is decentralized throughout the world is controlling the transaction and the fees are automatically goes to those transaction ledger control in computers and in that way the sender and receiver don't need to incur any additional fees for that.
Importance of Decentralized System
When it is centralized, we can easily find from some instances of this world that the owner is the regulatory Party Can manipulate the user's write anytime on the basis of their interest. For example, if we just talk about YouTube, many of the users are banned without any notice or explanation. So, the centralized parties can do anything as they have the ownership of that platform or organization. In financial system this is nothing exceptional. I have a lot of examples around me hope was being harassed and head to Inka number of fees without any provision from several banks. This is the main problem of centralized financial system or organization. source But in the centralized system there is no one who can manipulate the system or harass a user. As it is decentralized so the transactions and the laser are not being maintained by any single entity rather it is circulated to the decentralized computers throughout the world. So, a proper system will be developed and all of its users have equal rights and responsibility to follow this systems and guidelines. So, when someone will follow all the system there is no chance of being attacked by any of the central entity that is the beauty of decentralized system. And for this reason, to protect the rights and responsibilities of the users decentralized system is very much needed.
Difficulty in Mining Currency
To be a Miner of cryptocurrency anyone needs to be expert on this because if it is not profitable then he or she can incur a huge amount of loss for setup the mining. There are many countries where the price of electricity is much higher, so for those reason it is not profitable to mine cryptocurrency. If anyone don't have proper knowledge and pricing and costing about cryptocurrency and its mining system then he will not be able to be a miner. And another reason is many countries are restricting cryptocurrency to be mined so the population of those countries are not able to mine cryptocurrency. The third reason I must mention is the adaptability and lack of knowledge. About 95% people or even more than that people are not aware about mining and this time is new to about more than 95% people. So, as they don't know about the issues and what happening with these currencies, so how can we think about mining by them. source
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This is Sayful
Ex Banker Part time blogger By Profession Lecturer Fasinated by Nature and Cricket Day dreamer and a round pig in square hole Write on Textiles, Online Money Making, Agriculture & Technology
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