Let me first introduce you to how the cryptocurrency came into the market and
how it attracts investors.
When we talk about cryptocurrency, it’s digital or virtual currency its not available in the form of INR, Dollar or some country currency form its available digitally and virtually in your account. It works as a medium of exchange. Let me clarify you:
According to the latest exchange rate right now:
1 BitCoin = 9625.680 US Dollar and in INR
So, if anyone wants to buy cryptocurrency they can simply pay their relevant amount and get that virtual coin in their account. If in future the prices of that coin get the increase they can simply sell it to someone by exchange the money or commodities without any third-party authentication. It uses cryptocurrency technology to secure and verify all digital transactions and also control the creation of a new unit of cryptocurrency. Originally, cryptocurrencies are having entries in a database that is why no one can exchange or mine more unless specific conditions are fulfilled.
At 90’s tech boom there have been many attempts at creating digital currency through systems like Flooz, Beenz, or DigiCash and tried their best to emerge in the market but unfortunately they got failed in it. There were so many causes available for their failure such as fraud, financial problems, and even the rasping of company employees, their business partners, and their bosses.
Remarkably, all those systems decided to utilize a trusted Third-party Approach, meaning that the companies or banks behind them are verified, well authorized, and facilitate the transactions. But for Long, while these companies were under loss in the field of digital cash system.
Then, in 2009, an innominate programmer or a group of techie under the guidance of an alias Satoshi Nakamoto introduced Bitcoin. Santoshi introduced their new invention as a ‘peer-to-peer electronic cash system’. It completely works under the favour peer-to-peer network for file sharing called as decentralized.
When we talk about the decentralized network like Bitcoin, every single user wants to participate and to do this job. This all work via block chain method –it is a public ledger of all transaction which happened within the network and available for everyone. Therefore, every person who involves in this network
can see every account’s balance.
Every transaction is present in the form of a file that consists of the sender’s and receiver’s public key (address key) and the amount of coin transferred. The most essential part, the transactions also need to be signed off by the sender with their private key. These all are basics cryptography, but as per those all transactions will broadcast on the network, need to be confirmed first.
So, Not to worry that everyone can see your balance in that network, they cannot able to misuse anyone’s balance only the owner of that particular account can access their own money no one else because all transactions are cryptographic and send with some private key.