The bitcoin domination over all other digital currencies has never been more eminent than today. There are some predictions though that the market share of bitcoin will drop significantly in the next few years even though these predictions are just suggestions for now. Cryptocurrencies are yet to play a very important role in the coming future of money.
One of them, in particular, has the brightest future of all and that would be the best digital asset of today, bitcoin. This new digital cryptocurrency market is far more complex than it seems. There are countless studies that are dealing with the whole cryptocurrency industry and they examine the future and role of bitcoin in particular. They are also dealing with the evolution of the broader cryptocurrency market.
The one conclusion they made so far is that it is still changing and maturing. This will give them a valuable insight on how this market might change in the future and more importantly, what those change will mean for the current economic systems that we still use. One of the biggest challenges that appeared with cryptocurrency is unauthorized copying and how to prevent it.
The mechanisms of prevention
In order to find the best solution, there are two mechanisms that protect cryptocurrencies from unauthorized copying. The first one is a public record where every transaction made is recorded and stored. There are numerous copies stored that are used for automatic comparison and updates in order to prevent double spending. Double spending is basically when the same bitcoin is used to buy two different things, which is nothing more than a scam.
The second mechanism is the protective cryptography that keeps the ledger itself protected. Every transaction is collected, as well as all the updates, and added to the existing ledger. Each ledger is encrypted and frozen and the next version includes the encrypted copy of the previous one. You would have to be a computer mage in order to generate a number that would game the system.
These new ledger versions ,also known as blocks, are extremely hard to copy. And that is what makes sure that the system is always secure and protected. There is literally no way how you could copy the ledger. There could be a way for super hackers but since it would take a tremendous effort to do it. The hackers are choosing the other options which are way easier.
So, in a way, the cryptography is by itself a way of protection. It’s making the whole growth of cryptocurrency industry possible otherwise, there would be a mess all over the place and anyone with a bit of computer knowledge could start making incredible amounts of money. It could plunge the world into economic chaos. To prevent this chaos from ever taking place, these mechanisms were devised to keep everything under control. The governments are not in charge of this digital wealth as there’s no way how to control it and prevail.