Money transactions that do not bow down to the rules of currency, government restrictions, or physical attributes of cash. And all transacted online. That may sound like a complete dream, right? Well, this information will help you understand the basics of it, from how it works to what it entails.
So, first things first, the definition of it. It is internet-based, which means that the transaction happens online. The whole purpose of this is to decentralize money, thus achieving transparency in sales since all steps can be traced.
Now, why was transparency so important when establishing this money exchange medium? Governments have controlled financial transactions and institutions since time immemorial, thus affecting the free flow of money. This new system switches things up by giving the power of your money to you. Any central authority does not control it.
Another significant advantage of this is that there are minimal transaction fees since traditional government-controlled systems are highly taxed. Transfers can be done using either private or public keys between two individuals or parties.
There are also a lot of restrictions when it comes to transacting money between long distances, or across different financial platforms. This system conveniently solves this problem, since all you need to have is access to the internet for you to send and receive funds through it.
A lot of banks and governments also have tried to understand how it works, to offer their clients these services. But it would be more advisable, after reading this information, for you to sign up to an actual blockchain course to have your proper knowledge of how it works. Blockchain refers to a ledger technology that is distributed and serves as a sort of database for all financial transactions carried out online.
Now the one key of this is to have no server between the transactions. Bitcoin by Satoshi Nakamoto was the first of this kind, so cryptorocket was a sort of after-thought to it. A way to fill the void that came after bitcoin, where there was no proper way to digitize cash completely.
Another aim of this was to prevent double-spending on one entity’s side. Another one is to achieve a complete consensus from all parties involved in the exchange. Otherwise, the whole system would crumble to bits.
Strong cryptography is used to facilitate these transactions, which includes verifying the exchanges and controlling the addition of extra units.
How safe is it to venture in
It should be the next question that might cross your mind, whether cryptorocket is a safe way to invest your finances? Or whether even the transactions themselves are secure? Since there is no government control, and for decades, that is the body we have trusted, somewhat, to ensure that our money is safe.
Well, just like any other financial choice that you would want to make. As earlier mentioned, it is wise to do your research first and determine whether it is the right fit for you and your money.