How Cryptography Enabled the Crypto Market

How Cryptography Enabled the Crypto Market
Photo : Image by WorldSpectrum from Pixabay

Who would have thought that financial transactions would have evolved online? Given the delicate nature of moving money from one account to another, it was tough to shift the platform from traditional to virtual. Learn how crypto technology has revolutionised it all from banking to trading with crypto exchanges.

The Origin

Perhaps you have heard of the science behind the safe and secure financial transactions undertaken online.  The key-word is cryptography which pertains to communication techniques employed to ensure security. It guarantees privacy between the two parties communicating that no stranger would be able to intervene in the exchange of information.

According to Kapersky, the word was derived from the Greek term kryptos. It simply translates to the word "hidden", which contemplates keeping messages hidden from people other than the designated recipient. Upon sending, the text is converted into ciphertext and will only assume its original form when it reaches the receiver. That is how the process works in cryptography.

This technology has empowered the online community to interact with each other knowing that the environment is safe and secure. It is only when there is a reasonable degree of privacy that people become comfortable in dealing with others.  For whatever it is worth, it has made the internet a better place to thrive financially.

Internet Banking

With the advent of cryptography, funding crypto accounts can be done easily. Money transfer has evolved from traditional banking and the use of automated teller machines to internet banking in mobile devices. Encryption and decryption introduced the use of a one-time pin (OTP) to authorise money transfer at one touch. This is personal banking at its finest, done anytime and anywhere.

With all this, funding of crypto wallets is undertaken instantly. Simply log in to your online banking app, enter your credentials, and type the amount to get started. Then, you will be asked to provide the OTP sent via email or SMS as an authorisation. That pin is your ticket to complete the online financial transaction.

Once you have completed the process, you can expect the funds to be credited to your crypto wallet. The amount shall correspond to its digital coin equivalent based on the current trading prices. It is recommended to check on the price history before trading so that you can assess whether it is the right time to buy or sell. You may want to visit the Crypto Engine trading platform and use the easy steps to sign up.

Crypto Trading

Blockchain technology, which runs cryptocurrencies, is characterised by cryptographic algorithms. It basically facilitates a decentralised way of generating monetary equivalents called digital coins and transferring them from one account to another. This results in crypto trading in which an investor could sell when prices are high and buy when prices are low.

In trading cryptocurrencies, you might want to take some baby steps before that leap of faith into risky waters. You can always learn the ropes by checking out the daddy of all cryptocurrencies, the Bitcoin.

The best thing about blockchain technology is the streamlined operation less the costs. Since there is no central authority, the transaction is simple, fast, and most importantly, cheap. All these with the security brought about by data encryption and decryption techniques.

Updates and Upgrades

Of course, there is more with the ever-evolving crypto technology. Bitcoin has just announced its upgrade coined as the Taproot. It is expected to bring not only more privacy but also more efficiency. With its promising potential, Bitcoin might set new records by November.

The upgrade is still undergoing further tests. As much as crypto investors are advised to exercise caution, crypto creators are also the same before treading new waters. It is for this reason that Bitcoin is still taking its time.

This latest update will pose a challenge to other cryptocurrencies. It is supposed to make the market even more competitive through the introduction of innovations that would improve services. Soon, the others will follow to stay in the competition. There is no room to retreat as the crypto market grows globally.

Conclusion

From its development, cryptography has paved the way for the emergence and continuance of the crypto market. The crypto algorithms brought the blockchain technology that powered cryptocurrency operations.  What is more interesting is that this technology is still in progress.

© 2021 iTech Post All rights reserved. Do not reproduce without permission.

Tags

More from iTechPost