A Cryptocurrency is an online version of money, a digital asset to be precise. The name is derived from the Cryptography, which is used to encrypt transactions and control the production of the currency. It is a strictly monitored process, as it uses the Blockchain Technology.
To put it very simply, Blockchain technology is a distributed database that is used to used to manage & maintain a growing list of data blocks, using a P2P network collectively. These data blocks may be situated in different locations and not connected to the same Processor. A database is a collection of records. A distributed database is one which may be located in different locations and not be attached to a common Processor – but it may be located in the same or different physical locations and dispersed over a computer network. In a Blockchain, once a piece of data is recorded, it cannot normally be edited or changed.
Though neglected earlier, banks and financial institutions and companies are getting increasingly aware of its importance. Rather, they have a fear of losing their market of ‘digital cash‘ to the new currency.
While the security and ease of exchange make it an ideal medium of monetary exchange for the future, few know about Cryptocurrencies, and it is believed that these are unsafe. Although a recent surge in the price of Bitcoins and simultaneous boasting of the same on social media generated a lot of interest, it could still be years before it enters the mainstream.