Cryptocurrency And Blockchain Demystified

By Author: Paul M
Total Articles: 2
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Cryptocurrency and blockchain overview

The subject issue of cryptocurrency and blockchain remain highly controversial. Cryptocurrencies have come to stay and despite the well fact of cryptocurrencies volatility they are still considered a notable form of investment asset. "Evil" some though may call it, as they are reputable for facilitating criminal activities and serve as safe haven for criminals and money launderers, it has found its way in the hearts of many and it's global embrace is quite overwhelming.

Bitcoin, ethereum, ripple, and USDT are all types of cryptocurrency and the underlying technology with which cryptocurrencies operate is known as the blockchain. Hence in this article we will attempt to demystify cryptocurrency and blockchain (it's complex underlying technology) and will also look at issues surrounding cryptocurrencies and blockchain.

What is Cryptocurrency?

Cryptocurrencies are digital currencies, but unlike other forms of digital currency such eNaira cryptocurrencies are decentralized and secured by cryptography, making it nearly impossible ...
... to counterfeit. Aside from cryptocurrencies being an investment instrument, they can also serve as exchange for goods and services both online and physical stores, but they do not possess intrinsic value hence they are not redeemable for another commodity, such as gold.

Cryptocurrencies are not issued by any central authority and do have backing from the government, for this reason they are not considered as legal tender, although a few countries are nurturing the idea after the recent adoption of bitcoin as legal tender in El Salvador who became the first country to adopt cryptocurrency as legal tender. However it's decentralized nature brings a vast array of advantages to cryptocurrencies, such as crypto holders being in total control over their money and not having a single point of failure as they do not have a single point of entry, and much well promoting transparency.

Cryptocurrencies provide a fast and convenient way to carry out transactions, eliminating middle men and reducing the cost of transactions. Also cryptocurrency transactions do not require disclosure of identity and have caused most to believe that cryptocurrency guarantee's their anonymity, however that is not completely true as transactions can actually be traced back to the entity (although it is quite difficult but not completely impossible) by law enforcement agencies. What cryptocurrency actually offers is pseudonymity, which is a near-anonymous state.

The benefits of cryptocurrency and blockchain are enormous, today there several exchange platforms where users can buy and sell cryptocurrency and we would take a look at some reliable exchange platforms where crypto trader, investors and enthusiast can buy and sell bitcoin or any other cryptocurrency they wish to own.

Reliable Cryptocurrency Exchange Platforms

There are many platforms to buy and sell cryptocurrency in Nigeria today. But the concern is how to buy and sell bitcoin and other cryptocurrency from an exchange without hitches. A reliable exchange platform allows for the successful exchange of cryptocurrencies (Bitcoin, Ethereum, Lite coin, Ripple, etc.) or exchanging cryptocurrencies for fiat currency. Hence we will look at some reliable exchange platforms where you can buy and sell cryptocurrencies.

1. Coinbase:

Coinbase is a well-known cryptocurrency exchange that makes it easy to buy, sell, and exchange cryptocurrency. Coinbase makes buying bitcoin as easy as buying a stock through an online brokerage, but look out for the fees and poor customer service. Coinbase also offers a cryptocurrency trading and investing platform that offers users the ability to buy, sell, and exchange over 100 tradable cryptocurrencies such as Bitcoin, Ethereum, USDT and Dogecoin.

2. Nairadirect:

Nairadirect not only trades in buying and selling of bitcoin. A presentable and secured environment for business transactions is their number one priority. They have implemented all safety measures so you don't lose your investment. Another notable thing about Nairadirect is that they credit your wallet as soon as payment is confirmed. Therefore, your transaction with the company is not only secured but also timely.

3. Exchangeindeed:

Exchangeindeed is another secured platform just like Nariadirect. It is very safe for transactions, however, it specializes only in the buying and selling of the most popular cryptocurrencies bitcoin, ethereum, USDT. Exchangeindeed has been in operation since 2009, which means that the business has been in operation for over a decade.

4. BitPesa:

BitPesa exchange platform is another good one because you can get all the privacy you need. It is suitable for both individuals and institutions, however, the platform isn't all free, you may be required to pay a few charges while carrying out transactions with them. To buy and sell bitcoin in Nigeria with a safe platform should be the first criteria in selecting an exchange platform. There are so many exchange platforms available in Nigeria, Africa, and all over the world.

What is a Blockchain?

The blockchain despite the buzz still eludes the comprehension of many people. Simply put the blockchain is a digital ledger of transactions that is distributed across the entire network of computer systems on a blockchain. The blockchain stores information in digital format and plays a vital role in cryptocurrencies existence. The blockchain allows for information to be recorded and distributed, however it is impossible to edit, delete or destroy information stored on the blockchain, hence making it a fixed ledger.

How does the blockchain work?

It is quite similar to a typical database with one major difference being how data stored on the blockchain is structured. These data are stored in groups known as blocks with a storage capacity which when exhausted, the block is then linked to another, hence the term "Blockchain". Although the concept of blockchain predates its widespread use in bitcoin and other cryptocurrencies, however this technology gained global recognition through its use in the creation of cryptocurrencies.

Issues surrounding cryptocurrencies and blockchain

Despite the confidentiality that the blockchain offers its users protecting them from hacks and privacy infringement, there are still issues that come with cryptocurrencies and blockchain. With the confidentiality blockchain offers comes with its use in illegal activities, hence the potential for an increased activity on the dark web.
Another issue to look at is government regulations on cryptocurrencies and blockchain which varies by jurisdiction, hence making the future of cryptocurrencies and blockchain uncertain as many are concerned that the government might some day make it illegal to own cryptocurrencies or participate in their networks. Also the significant cost associated with the blockchain is something to worry about as the technology is not free, even though it allows users to save money on less transaction fees.

Parting thoughts

The blockchain has been in existence for quite some time, but with cryptocurrencies running on the blockchain, it is finally making a name for itself. Now with the numerous practical applications of the blockchain, the blockchain stands to make business and government operations more secure, accurate, efficient and reduced cost of transaction with the reduction of intermediaries.

With big companies like Walmart, Amazon and the likes embracing this technology the issues of regulations are becoming less of a concern instead the question of when governments will come to terms that cryptocurrencies have come to stay. Also with policies put in place by exchange platforms with regards to customers identity, the issues of illegal activities will further dwindle and we all look towards the next decades which will prove to be an important period of growth for blockchains.

Paul is a seasoned writer for Exchangeindeed a safe and secure exchange platform where users can buy and sell bitcoin in Nigeria