DISCUSSION ABOUT CRYPTO CURRENCY EVOLUTION OF CRYPTO CURRENCIES Crypto currency existed as a theoretical construct a long time before the first digital alternative currencies debuted

DISCUSSION ABOUT CRYPTO CURRENCY
EVOLUTION OF CRYPTO CURRENCIES
Crypto currency existed as a theoretical construct a long time before the first digital alternative currencies debuted. In the early days, crypto currency supports the shared goal of applying the cutting edge mathematical and computer science principles to solve what they perceived as practical shortcomings of the fiat currencies.
The foundation of crypto currency was in the early 80s when an American cryptographer, David Chaum came up with a “binding” algorithm that remains central to the modern web based encryption. By the late 1980s he founded DigiCash which was a for profit company that produced numerous units of currency based in the binding algorithm. DigiCash was no decentralized unlike Bitcoin and most of the other modern crypto currencies. After the DigiCash was introduced much of the research and also investment in electronic financial transactions shifted to a more conventional way. This was achieved through digital intermediaries such as the PayPal.
WHAT IS CRYPTO CURRENCY
Crypto currency is a virtual or digital money designed as a medium of exchange. This uses cryptography in order to verify transactions and to control the new creation of new units of a particular currency. The usage of crypto currency exploded when Bitcoin was released. Though exact active currency numbers fluctuate and individual currencies’ values are highly volatile, the overall market value of all active crypto currencies is generally trending upward. At any given time, hundreds of crypto currencies trade actively.Here are the crypto currencies that are marked as high market capitalization:
1. Bitcoin. This was released in 2009.

2. Litecoin. The Litecoin was released in 2011This uses some of the basic structure as Bitcoin. However Litecoin includes a higher programmed supply limit and also shorter target blockchain creation time.
3. Ripple. This was released in 2012. This type of crypto currency is noted for the ‘consensus ledger’ system that speeds up the transaction conformation and blockchain creation times. on confirmation and blockchain creation times.

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4. Ethereum. The Ethereum aunched in 2015. This makes more networthy improvements on Bitcoin’s basic architechture. Ethereum utilizes smart contracts that enforce the performance of a transaction. It also compel the parties not to withdraw from their agreements and also contain mechanisms for refuds where the party should not violate the agreement.
What is Bitcoin?
This is a digital and a money system that is used globally. Bitcoin is widely regarded as the first modern crypto currency and the first publicly used means of exchange to combine decentralized control, user anonymity and also record keeping through blockchain. The Bitcoin was initially introduced by Satoshi Nakamoto whose identity was anonymous. He introduced the Bitcoin to public in the early 2009 and enthusiastic supporters began to exchange and mine the currency. Moreover, this also allows people to send and receive money through the internet. Moreover, Bitcoin allows making payments initially therefore makes it much easier and cheaper as this form of money is not subjected to regulation.
According to Sarah (Meiklejon and Danezis, 2016), Bitcoin is a purely online virtual currency, unbacked by either physical commodities or sovereign obligation. Instead, it relies on a combination of cryptographic protection and a peer-to peer protocol for witnessing settlements.

HOW DOES CRYPTO CURRENCY WORK?
There are certain steps or concepts which needs to be understood on how crypto currency work. The concepts are:

1. Blockchain: This is known as the master ledger that records and stores all initial transactions and activities which validate the ownership of all the units of currency at any given point of time. Identical copies of blckchain are stored in every node of the crypto currency’s network software. A transaction that is related to crypto currency is not finalized until it is added to the blockchain. The blockchain also prevents from double spending or manipulation of crypto currency code which may allow the same currency units to be duplicated and sent to numerous receipts.

2. Public Ledgers: All confirmed transactions from the start of a crypto currency’s creation are stored in a public ledger. The coin owners identities are encrypted and the system uses other cryptographic techniques to ensure the legitimacy of the record keeping. The ledgers make sure that the ‘digital wallets’ can calculate accurate spendable balance. New transactions can be checked to make sure that each transaction uses the coins that are currently owned by the spender.

3. Wallets: The users of crypto currency have ‘wallets’ that gives them temporary ownership of their units. Wallets lessen the risk of the theft for units that are not being utilized. These wallets can be stored on the cloud or any internal hard drive and also external storage device.

4. Transactions: A transfer of funds between two digital wallets is called a transaction. These transactions get submitted to public ledgers and awaits confirmation. The wallets use an encrypted electronic signature when the transactions are made. This signature acts as a proof that the transactions are made from the right owner.

5. Mining: This is the process of confirming the transactions and also updating them to the public ledger. The miner has to go through and solve a complex computation problem in order to fulfill this process. The first miner who is to solve the puzzle adds a block of transaction to the ledger. The transactions, blocks and also the public block chain ledger works together and also makes sure that no one is able to change or add a block at will. When a block is added to the ledger all the co relating transactions are permanent. This also adds a small transaction fee to the miner’s wallet. This process is what gives the coin its values and also known as proof-of-work system.

6. Private keys: Anyone who is a crypto currency holder has a private key that authenticates their identity and also allows them to exchange units. The users have the choice to create their own private key. Once they have a key they can obtain and spend the crypto currency. Without this particular key they can’t use the crypto currency system.
WHAT DIFFERENCE DOES CRYPTO CURRENCY MSKE COMPARED TO THE REGULAR MONEY?

1. First of all digital money allows the users to have complete anonymity. Unlike the traditional currency or the debit cards where the user needs to provide their personal information. The banks and the businesses can use this information to detect the activities of the users. However the crypto currency transactions ensure that no personal information is required therefore due to high privacy, the rate of theft is also lower in the crypto currency system.

2. The traditional money that is used by the people now is unlimited. The government or the authority that is responsible to supply the money is allowed to produce the money whenever necessary therefore, there is unlimited supply of money in the economy. On the other hand, the crypto currency is more limited that the present money. The supply of the crypto currency has a maximum limit therefore no one is allowed to supply more than the limit.

3. The present money is controlled and centralized by the law and the banks. The banks and the government can influence the money supply and also the users of money. The transactions that are completed using the traditional currency can be influenced. However crypto currency is more decentralized. The money and the transactions that are involved in crypto currency are not influenced and controlled by any single authority hence not even the government..

OPINIONS ABOUT CRYPTO CURRENCY
There are various questions and theories that are arising in regard of the crypto currency. Most importantly the future of crypto currency, especially the Bitcoin is quite debatable. Those who are in favors of Bitcoin claims that tis system of money will allow the funds to be transferred easily between the parties involved. The transfer of money can be done with less or minimal processing fees. This means that the users of crypto currency or the Bitcoin can avoid the steep fees charged by most of the banks. Moreover, many people who are in favor of crypto currency say that the crypto currency market has emerged in the past years. The digital money has become very powerful and therefore, banning it would be very costly to the countries.
However, there are few arguments which are against crypto currency as well. It is considered that the crypto currency is quite violate and may lead to financial issues in the countries. The crypto currency or the Bitcoin might lead to issues in the financial sector such as money laundering or financially illegal activities. According to (Tymoigne 2015) for example, is not enthusiastic over crypto currency use, providing reasons why he believes Bitcoins are not a viable electronic currency. He notes that Bitcoins are illiquid and have shown high price volatility, and that the discounted cash value of a Bitcoin is zero. He further observes the currency lacks a central issuer, and that there is no financial or economic basis for its creation. Moreover some of the researchers’ doubt that the crypto currency may become mainstream and can take over the regular money as the block chain will have a huge impact on the different types of industries.

A WORLD OF CRYPTO CURRENCIES
Even though, this money has appeared in to the market back in 2009 there are countries that are against this currency while some support it. Some of the countries have started using crypto currency and are also have become global advocates for this, while others have banned crypto currency completely due to various reasons. Here are some countries who are in favor of crypto currency and some who are against the digital money.
Countries in favor of crypto currency:
• United Kingdom: The UK Financial Authority stated that they are in favour of crypto currency therefore it is also advancing the regulatory framework in order to make crypto currency more Bit-coin friendly.
• Japan: This is one country which has a huge trend of Bitcoin. Back in 2014, the authorities in Japan has stated that the Bitcoin must be self-regulated. Presently Japan is also striving to ensure the safest transactions in Bitcoin. Japan also eliminated the possibility of double taxation on trading of Bitcoins.
• Switzerland: The Swiss are also moving towards the Bitcoin slowly and steadily. The government of Switzerland has also classified the digital currency as a form of foreign currency.
Countries against crypto currency:
• Iceland: As the government of Iceland has the concerns of capital fight they have banned Bitcoiin in the country.
• Bolivia: The government of Bolivia has banned Bitcoin as they believe that that the digital currency will lead to tax evasion and monetary instability of the country.
• Bangladesh: The Bangladesh Bank issued a warning against conducting any activity and transactions in crypto currency. It also reports that usage of crypto currency might lead to punishments up to 12 years in jail.

WHY SHOULD BUSINESSES USE CRYPTO CURRENCY?
When we talk about crypto currency, there are certain benefits of using crypto currency in the business world. Even though, the crypto currency is not being used globally, businesses should consider using it in their day to day activities. Here are dew reasons why businesses should use them:
1. First of all, when crypto currency is used, it will minimize the theft rate. As crypto currency do not require the users to acquire and enter the personal information. This is considered more secure than credit card transactions. It also offers more secure experience on both ends of the transactions which are made.

2. The crypto currency functions like digital transactions of cash. This system of money makes sure that there are no payment disputes or no chargebacks. Therefore the flexibility of crypto currency is good compared to other forms of money. As crypto currencies such as the Bitcoin is based on the internet transactions the challenges associated are lower compared to other forms of money.

3. If a business is to use crypto currency, it means that there is less processing time, Most of the businesses use bank transactions which requires up to 3 to 5 business days in order to be complete. On the other hand crypto currency takes only a portion of time and will be done in few minutes.

4. If a business is to use crypto currency, then the cost of the companies are most likely to reduce. As this money system is decentralized. It does not require verification from banks for the transactions that are made. Therefore, businesses fees will be eliminated.

5. Last but not least, crypto currency also means that companies can avoid frauds. The transactions are final and no changes can be made as the transactions are added to the block chain. The system verifies the funds and does not allow anyone to spend more than what they own. Both parties in the transaction needs to approve the transactions hence, there are less chances of disputes and frauds.

REFERENCES
• Meiklejon.S and Danezis.G, (2016), Centrally Banked Cryptocurrencies online Available at:
http://www0.cs.ucl.ac.uk/staff/G.Danezis/papers/ndss16currencies.pdf Viewed on May 13 2018
• Meiklejohn. S 2t al (2016) A Fistful of Bitcoins: Characterizing Payments Among Men with No Names Online Available at:
https://cseweb.ucsd.edu/~smeiklejohn/files/imc13.pdf Viewed on May 15 2018
• Tarver, E. (2018). Cryptocurrency ; How It’s Impacting Small Businesses. online Fit Small Business. Available at:
https://fitsmallbusiness.com/cryptocurrency-small-business/ Viewed on May 15 2018.
• Bitcoinist.com. (2018). 6 Reasons Your Business Should Be Accepting Bitcoin. online Available at: http://bitcoinist.com/6-reasons-business-accept-bitcoin/ Viewed on May 16 2018.
• CryptoCurrency Facts. (2018). How Does Cryptocurrency Work? – CryptoCurrency Facts. online Available at:
https://cryptocurrencyfacts.com/how-does-cryptocurrency-work-2/ Viewed on May 18 2018.
• Cointelegraph.com. (2018). online Available at: https://cointelegraph.com/bitcoin-for-beginners/what-are-cryptocurrencies#history Accessed 17 May 2018.
• Tom Crypto. (2018). 5 Reasons Small Businesses Should Accept Cryptocurrency – Tom Crypto. online Available at: http://tomcrypto.com/5-reasons-small-businesses-accept-cryptocurrency/ Accessed 17 May 2018.