Cryptocurrencies can actually be used to purchase real-world goods and services. And many forward-thinking companies globally and locally have already started taking advantage of this for tax purposes and otherwise.
If you’d ask what’s the difference between a cryptocurrency, a digital currency, and a virtual currency? The answer would be not much, but also a lot.
Cryptocurrency is both digital and virtual currency that’s created based on some cryptographic algorithm. No one “mints” this currency; they solve cryptographic algorithms using hardware and electricity to get the representation of one unit of value, typically called a “coin”. Bitcoin and Litecoin are all cryptocurrencies.
Cryptocurrency production is based on an algorithm, there is a network of nodes that validate transactions and does not need any trusted party (trustless) to verify anything.
Cryptocurrencies are a variety of digital currencies. Cryptocurrency is an asset used as a means of exchanging. It is considered reliable because it’s based on cryptography. One of the cryptography’s primary objectives is communications and how to make them secure.
It creates and analyses the algorithms and protocols so no information is changed or interrupted during the conversation by third parties. Cryptography is a mix of a large number of different sciences, with mathematics as the basic. It’s math that attaches the severity and reliability to algorithms and protocols.
Cryptocurrencies use Blockchain and a decentralised ledger. It means that no supervisory authority controls all the actions in the network. This comes at the expanse of all the users.