“Mobile was Internet 2.0. It changed everything. Crypto is Internet 3.0”
We all came across the news about cryptocurrency tax calculation. Firstly, we should know what cryptocurrency is.
Since time immemorial, currency has been a very important part of our lives in the caveman era. They use the barter system, now the barter system involves goods and services being exchanged among each other. So now we have a situation where a caveman is exchanging seven apples and getting oranges in return. Now the barter system fell out of use because it had some glaring flaws. These flaws include having people’s requirements coincide, for example say ,you have five apples and your friend has five oranges. You want some of his oranges now, until and unless your friend has a requirement for the apples that you own, he’ll not be ready to make an exchange for it .There’s no common measure of value now since there’s no common measure in terms of which value of a commodity can be expressed. There’s a problem when you must decide how many apples you are ready to trade for one orange or a mango. Not all codes can be divided or subdivided. For example, you can divide a live animal into different smaller units. The goods cannot be transported easily. Now unlike our modern currency fits in your wallet or your mobile phone, the goods that you own cannot be taken with you everywhere you go. After realizing that the barter system didn’t work very well currency went through a few iterations.
In 110 BC an official currency was minted in thousand 250 AD gold plated Florence was introduced and this was used across Europe and from 1680 to 1980, paper currency gained widespread popularity and was used across the world. This is how modern currency as we know came into existence. Modern currency included paper currency and coins, credit cards and digital wallets. For example you have Apple pay ,Amazon pay, Pal and so on, all of this was controlled by banks and governments. Now this means that there was a centralized regulatory authority that limited how paper currency and credit cards worked. Now imagine the scenario of doing an online transaction. Here you’re thanking your friend for paying for your lunch, now this transaction takes place successfully but there are several ways where this could have gone wrong they could have been a technical issue at the bank for example the systems could have been down, the machines weren’t working properly and so on, that means there’s a central point of failure which is the bank. The users accounts could have gotten hacked or the transfer limits for that account were exceeded, this is why the future of currency lies with cryptocurrency.
A cryptocurrency is a digital or virtual currency that is meant to be a medium of exchange. Now cryptocurrency is quite similar to real-world currency just that it does not have any physical embodiment. It also uses cryptography to work the way it does. Some of the features of cryptocurrency are that there’s a limit to how many units can exist with Bitcoin, this limit exists at 21 million.
After this no more bitcoins will be produced. You can easily verify the transfer of funds, the hashing algorithms that Bitcoin uses makes it very easy for users to determine whether a transaction is valid or not. They operate independent of a bank or a central authority. They work in a decentralized manner. Now new units can be added only after certain conditions are met. For example for Bitcoin only after block has been added to the blockchain will the miner be rewarded with bitcoins and this is the only way new bitcoins can be generated.
I have always been against Glorifying Over Work and therefore, in the year 2021, I have decided to launch this campaign “Balancing Life”and talk about this wrong practice, that we have been following since last few years. I will be talking to and interviewing around 1 lakh people in the coming 2021 and publish their interview regarding their opinion on glamourising Over Work.
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