These days, cryptocurrency is all the rage. While Bitcoin is the most well-known cryptocurrency, did you know others named after the famous internet dog and Kanye West? Let’s dive into the fascinating facts about the world’s most hyped cryptocurrency. The term Cryptoccurency in Nigeria refers to the level of cryptocurrency use, societal acceptability, and regulation in the country.
The global cryptocurrency market is booming:
Although you may have heard of Bitcoin, Ethereum, and Binance coins, there were over 4,000 cryptocurrencies as of January 2021. This number is increasing at an alarming rate every day. Every day, new cryptocurrencies get produced, and the unfortunate fact is that many of them will fail within a few months. Cryptoccurency in Nigeria placed a ban on cryptocurrency trades.
A cryptocurrency gets created by anybody:
Anyone can dance, and anyone can generate cryptocurrency. Anyone can create their own coin or token. But there is a distinction. While new money necessitates the creation of a new blockchain, a new token gets generated on an existing blockchain such as Ethereum.
There is crypto-mania everywhere:
Have you been following the ups and downs of Bitcoin, Ethereum, and other cryptocurrencies lately? You’ve also probably seen the Dogecoin memes make the rounds on social media. Cryptocurrencies are making headlines. Superior returns, among other things, have gotten a lot of attention. The crypto sector has expanded dramatically in recent years. In India, around 12-15 crypto exchanges operate, with daily trade volume estimates ranging from Rs 500 to Rs 1,500 crore.
Two Bitcoin crypto facts you didn’t know:
Proof of Work developed to combat spam.:
Have you ever wondered how the Bitcoin network’s Proof of Work consensus method came to be? In the broadest meaning, “Proof of Work” necessitates a computer or computer user doing challenging assignments necessitates computations to meet the established standards. Not unexpectedly, this notion gets developed to prevent email spammers from sending out a disproportionate number of emails to a large number of people at once. The original concept depends on the assumption that spammers waste significant computational resources to transmit their spam emails. The requirement to complete “work” and confirm completion via a goodwill token would dissuade a spam sender from sending such emails in the first place.
Best contracts and DApps gets supported by Bitcoin:
One of the reasons the best contracts were established on the Ethereum platform rather than the Bitcoin network, as you learned in lesson 11 of the Bitpanda Academy Intermediate course, was because Bitcoin was insufficient in terms of Turing completeness and had limited scripting capabilities. Still, things are changing, and the Lightning Network’s best contract capability is now maturing into a framework with enormous potential to rectify the Bitcoin network’s initial weakness, coupled with the Bitcoin Taproot upgrade that occurred in November 2021. The Lightning Network, which envisions a second-layer solution to grow the Bitcoin network, is a peer-to-peer network of payment channels supported by routing nodes. To summarise, second-layer solutions are programs or protocols linked to the blockchain of a network, although many actions take place in the environment.
Many Bitcoin and Ether users are unaware that the Lightning Network gets used for purposes more than payments. The Lightning Network includes its contract programming language that allows DApps or Lightning Network Apps (“Lapps”) to be written directly on Lightning nodes. To elaborate, Lapps, like DApps, are just groupings of smart contracts developed for a specific purpose, like running a game or supporting a point-of-sale.