Cryptocurrency is a fairly new, modern way of transferring value over the internet. It's simple and complicated at the same time but here, at Crypto Lemon, we focus on providing a safe environment for your Cryptocurrency’s safekeeping so it's only right that we explain what it is.
At its core, a cryptocurrency exists to allow any individual to transfer value directly to a recipient anywhere in the world, without needing to rely on a trusted third party in the middle to facilitate the exchange.Before crypto currency, any attempt to send value apart from handling cash, was to go through a bank or a third party, for example PayPal. The groundbreaking solution made possible by cryptocurrencie's seemingly simple function introduces possibilities for a great variety of solutions and improvements in areas of payments, law, security, business processes, and much more. Here are just a few of the incredible cryptocurrency applications that will be quite helpful to society in case we allow them to grow.
Direct digital payments
A lot of people think that making payments online is a part of everyday life and a given, when you want to exchange value online. But this is not the reality for everybody, not even close. For instance, not everyone has access to a bank account or a credit card that they can use to engage in online commerce. Furthermore, our current system, which relies on third parties to facilitate exchange, is only as good as the trust that we can place in them. Such providers could conceivably go offline due to technical or cybersecurity difficulties, or governments could push them to prevent certain transactions, or they could mismanage or improperly direct user funds. The list of presumptions is quite long but the point was made. Whatever the hypothetical, the argument is that users must bestow a considerable amount of trust in the third party to be a responsible and faithful keeper of those funds, assuming that individuals have access to those services in the first place. Cryptocurrencies remove the need to rely on this trusted third party to make a transaction. In effect, a cryptocurrency replaces a third party like Bank of Scotland or PayPal with the network itself, which is managed by a distributed web of computers all across the world. This means that Sarrah can pay George directly over the web, whenever, wherever and however she wants, without the need to add a third party to the Sarrah-George value exchange, a third party that can be inconvenient or expensive. This also means that people without access to banking services can now take part in digital commerce. Cryptocurrency allows for direct digital exchange. A phenomenon only achievable through their use. To make a direct exchange using normal Fiat currency, individuals will have to meet in person to exchange which can lead to problematic or dangerous situations. To make the same payment digitally, the individual will have to rely on an industry available, trusted third-party, which is costly and at times unattainable. There is no way to combine direct exchange and digital exchange using a traditional sovereign currency, which is why cryptocurrencies are so unique and value-generating.
Security and Smart-contracts
Cryptocurrency has a ton of other great applications apart from digital commerce and exchange. For example, transfers can only be made when a user cryptographically approves a specific transaction—an action known as “signing with a private key.” This means that the user who holds the private key, and only that user, can control where and when their money is spent. This adds a lot of security value to the argument in favor of Cryptocurrency.
Cryptocurrency proves its worth in crucial environments where citizens cannot trust that institutions will be responsible guards of their hard-earned money. Consider the tragic cases of countries like Venezuela or the Ukraine, where individuals’ property and savings can be confiscated by authorities through law or inflation, or irreversibly lost due to an ongoing war conflict that encompasses all aspects of private ownership and consumer banking.
With cryptocurrency, more Venezuelans have an alternative: They can opt to purchase or mine a secure store of value that cannot be confiscated or inflated away by their government because they alone control their private keys.
In the case of Ukraine, Cryptocurrencies can allow for worldwide donations to arrive on time and aid the war effort of the oppressed. It allows the citizens escaping the warzone, a way to flee with their money converted to a digital store of value, borderless and secure!
(Indeed, cryptocurrencies are especially popular in Venezuela and the Ukraine for precisely this reason)
While our examples so far have focused on simple currency storage and transfers between parties, cryptocurrencies also include the scripting capabilities that allow for more complex transactions to occur.
These kinds of transactions are known as “smart contracts” and they work because all of the elements of the exchange taking place are entirely digitized. Smart contracts can be deployed at any time that a set of digital promises can be enforced by a protocol through which the parties to the promises operate. There are a wide range of hypothetical and currently-used applications in the fields of finance, law, identity and registration, rentals, and even supply chain management. Upon reviewing the majority of cryptocurrency benefits it's clear to see that these innovations can yield benefits that traditional sovereign currencies never could. It is never a bad thing to wait to get involved with a new technology until you feel that you really understand it—especially when that technology can also be a kind of financial investment. The great thing about cryptocurrencies is that they are entirely voluntary: If a person feels uncomfortable using them, they are in no way obligated to get involved.
Once you decide to get involved, Crypto Lemon's got your back. Open a free account here and manage your digital assets securely.
What is Cryptocurrency?
