8 Key Facts About Cryptocurrencies & Their Use in Ecommerce

Cryptocurrency is a digital or virtual currency secured by cryptography. It is decentralized, meaning it is not governed by any other body and is operated through a distributed ledger enforced by a dispersed network of computers. Cryptocurrency is a rapidly evolving technology, and with it comes a range of interesting facts that are important to understand. In this article, we explore 8 key facts about cryptocurrencies including their security, mining, and potential for use in the ecommerce landscape.^[0]

Cryptocurrencies are secured through cryptography, a complex process of encoding that makes it difficult to counterfeit or manipulate. This process is powered by blockchain technology which is a distributed ledger monitored by computers.^[1] Ethereum is unique in that it is more than just a coin – it also allows users to perform smart contracts, formalized agreements between buyers and sellers.^[0]

Decentralized cryptocurrencies allow straightforward peer-to-peer money exchanges online and are becoming increasingly popular because they do not involve banks or other traditional financial institutions to facilitate their trade.^[2] Furthermore, businesses can take advantage of cryptocurrency to save money on transaction fees while providing a secure payment option for their customers. Blockchain technology can be utilized to create permanent ledgers, enabling users to monitor their transactions in real time.

However, there are certain challenges associated with the use of cryptocurrency. Security, privacy, and control are all important issues that need to be addressed. Additionally, cryptocurrency is extremely volatile and prices are unpredictable, so users must exercise caution when investing in it.^[3]

Cryptocurrency is created through a process called mining which requires specialized computers to solve complex math equations.^[4] These computers consume a lot of electricity to stay running and cool.^[4] Mining is a business and the process of making certain cryptocurrency networks work.^[5]

Application-specific integrated circuits (ASICs) are chipsets designed to process a specific task and are used to mine cryptocurrency.^[6] They offer an improvement in power consumption and speed over GPUs which have been the most common hardware to date.^[6]

Cryptocurrency can be purchased through online platforms known as Crypto Exchanges, and it is stored in a Crypto Wallet. Additionally, users can make a nice profit off of crypto staking, the process of contributing to the security and operability of a blockchain network by pledging tokens to a ‘validator’ who processes transactions.

Overall, cryptocurrency is changing the way businesses store and manage their finances and is becoming increasingly popular worldwide.^[7]

0. “Exploring Cryptocurrency Technology: 8 Facts to Learn About …” www.tekedia.com, 13 Feb. 2023, https://www.tekedia.com/exploring-cryptocurrency-technology-8-facts-to-learn-about/

1. “FBI: More than $1 billion lost in cryptocurrency scams as popularity …” denvergazette.com, 13 Feb. 2023, https://denvergazette.com/news/crime/fbi-more-than-1-billion-lost-in-cryptocurrency-scams-as-popularity-increases/article_5807978c-a32b-11ed-a7f4-c313b881fb62.html

2. “Digital Currencies as National Threat and Opportunity > Joint Chiefs …” www.jcs.mil, 13 Feb. 2023, https://www.jcs.mil/JKO/Latest-News/JKO-Customer-Spotlights/Article/3204717/digital-currencies-as-national-threat-and-opportunity/

3. “What is Cryptocurrency and what are its benefits? | Payments” www.telemediaonline.co.uk, 13 Feb. 2023, https://www.telemediaonline.co.uk/what-is-cryptocurrency-what-are-its-benefits/

4. “Can cryptocurrency become more environmentally friendly? | Fierce …” www.fierceelectronics.com, 13 Feb. 2023, https://www.fierceelectronics.com/electronics/can-cryptocurrency-become-more-environmentally-friendly

5. “Cryptocurrency Market is likely to reach $12.10 billion by” www.globenewswire.com, 13 Feb. 2023, https://www.globenewswire.com/en/news-release/2023/02/07/2603472/0/en/Cryptocurrency-Market-is-likely-to-reach-12-10-billion-by-2030-Globally-at-a-CAGR-of-11-9.html

6. “Cryptocurrency: An insider’s guide (free PDF) | TechRepublic” www.techrepublic.com, 13 Feb. 2023, https://www.techrepublic.com/resource-library/whitepapers/cryptocurrency-an-insider-s-guide-free-pdf-copy1/

7. “The Most Profitable Ways to Stake Cryptocurrency – Fintech News” www.fintechnews.org, 13 Feb. 2023, https://www.fintechnews.org/the-most-profitable-ways-to-stake-cryptocurrency/