Wants To Know How Crypto, Block-Chain Work? This Information Is For You
Elementary:
Crypto currencies are digital currencies that you cannot see but you have it. It is a digital currency. It is online currency. It is not in your bank account. It is not in your wallet. It is not your purse or local wallet. It is not inside your ward-rope. It is not anywhere near you.
There is a different between a Crypto Currency and a Hard Currency. Crypto Currency is digitized why a Hard Currency is Fiat. Fiat Currency is not digitized. It is not online. Our fiat currency which is simply the hard currency is centralized. In other words, there is a body that is in charge of it.
You may like: 2023 Presidency: Wike Unveils How He Will Address Leadership Deficit In Nigeria If Voted Into Power
For example, the Central Bank of Nigeria controls Nigerian Naira. The United States of America has their Central Bank. Hard Currency has an organized body that regulates its circulation. The regulatory bodies determine how much that goes into the economy.
With this measure, the policy makers can cause inflation or deflation depending on the country’s economic status.
Read Also: Osinachi’s Husband To Face Full Weight Of Law As FCT Police Commences Investigation
Crypto Currency is decentralized. This means that nobody controls it. Nobody is in charge of it. Central Bank of Nigeria cannot it. Nobody controls Bitcoin anywhere in the world. That is the reason some countries are afraid of it.
Nigeria as a country wants a currency it can control. Nigeria is one of the countries afraid of Crypto Currency despite its relevance. Though, anybody anywhere can use Crypto Currency to do havoc that people will not know about. Terrorist can transfer money through crypto in and out of the country that Nigeria economy would not able to control.
How Does Crypto Currency Work?
A quite number of people do not believe that crypto is safe because it is digitized. They think it will be hacked. They think people can steal it the same way our bank accounts are hacked because it is online.
How safe is Crypto Currency?
Crypto Currency works under a technology called Block-chain Technology. Block-chain Technology is the type of technology where whatever it is that you saved in it is not saved in one place. For example, in Central Bank, every information that they have in in making the naira is one place.
You may also like: How Sixty Seconds Pleasure Drives Man To Life Imprisonment
There is database where they keep it. So if anything should happen to CBN today and that database is destroyed, the economy is gone. Both the codes and other information used in printing the currency are gone.
Crypto currency is not like that. Moreover, the block chain technology made it impossible for hackers to penetrate. For that of the bank, their code is in one database. Anybody who can crack it would get the code and start printing money on his own.
Several times we heard of bank soft wares are hacked into, and hackers start withdrawing. It has happened many to banks.
To be continued …