In the world of cryptocurrency

Before the start

Cryptocurrency or cryptocurrency. Buzzword is a very popular word in English. As the days go by, its popularity is increasing. Not just the return of words, but reality. Bitcoin is the most popular cryptocurrency in the world.

The current value of Bitcoin is ৬ 36,341 (according to Coinbase on June 1, 2021). Bangladeshi rupees, the value of which stands at 30 lakh 60 thousand 97 rupees! However, after the tweet of Elon Musk, the price of Bitcoin is on the decline. However, the interest of the people has not decreased.

What is this bitcoin? What is cryptocurrency? If you want to know, go back a little and first understand, what is currency?

1: The story of the coin is fairly familiar to us. From the very beginning of civilization, man has realized that he cannot produce everything he needs alone. To be exchanged.

Let’s think of a village. One farmer may cultivate paddy, another may cultivate fish in a pond. Rice is broken and rice is cooked. The first farmer wants to eat fish with rice. Again the second farmer wants to eat fish with rice. So the two exchanged, a fish instead of a kilo of rice. Similarly other farmers cultivate potato, patal and various vegetables. You can’t keep pace with just such things. An ideal interchangeable object is therefore needed for exchange. Thus begins the currency. In exchange for money everyone can collect the necessary things, which we call transactions.

At present the government controls the money. The amount of money that will be in the market in a country is decided by the government of that country. It also fixes what can be bought with this money. It would be illegal to buy anything other than those things with that money. The government also takes care of whether someone is buying something illegal or not. In this case, the banks help the government.

At present, every ordinary transaction is monitored by big companies, banks and the government. Even if they can’t steal your balance, they can find out what you are buying and why you are spending money. In other words, everything is under the control of the government. Out of this control, cryptocurrency originated for transactions like one’s own, avoiding everyone’s eyes.

There are currently more than a thousand cryptocurrencies on the market. Etherium, Lightcoin, Ripple, Stellar, Dodge Coin are some of them. And, the most popular is undoubtedly Bitcoin.

People have long dreamed of such a digital currency. Which will act as a cache, leaving no trace behind. This is the biggest advantage of cash. You can buy anything you want, you can make any transaction, no one can easily find you by holding the mark. The problem with digital currency or balance, such as credit card balance, is that the news of your transaction will be on the bank’s server. You can be easily tracked by that sign. This is how the idea of ​​cryptocurrency came about. Like cash, it can be spent anonymously, instantaneously, but can be transacted via the Internet, all over the world.

It has a big problem. If the control is not in anyone’s hands, then who will ensure that the two parties are giving the right thing in the transaction? This problem has plagued many computer scientists and engineers. It also has a name – the Byzantine general problem.

Here is the story: A group of Byzantine generals surrounded a city. To win the war, everyone must attack together. And at least you can’t attack. Because, if one does not attack, many other soldiers will die. Just as we don’t trust anyone online, they don’t trust anyone. Because, in favor of attack, one may not attack in the end. The way then?

Victory is guaranteed if everyone attacks together, but if anyone betrays, the battle will be lost

There is only one way – one has to decide to attack. That one has to take responsibility for the rest. We have to make sure that everyone abides by the decision. If you make some purchases with a credit card, the bank will take care of your payments. Again, if one takes this responsibility, the control of money can go into his hands. This means that people have to go back to the previous point in the circle to solve the problem of trust that people have thought of cryptocurrency to avoid. Satoshi Nakamoto emerged like a ghost when everyone was struggling with this problem.

2: Who is this Satoshi Nakamoto? Even today no one knows the answer to this question. People are looking for him a lot. But could not find. Some say Nakamoto is not one, but a group of people. There have been various speculations about this. Dorian Satoshi Nakamoto is the man who comes up with a picture of Satoshi Nakamoto on Google. An article about him was first published in Newsweek on March 7, 2014 – The Face Behind Bitcoin. If you do Bengali, the people behind Bitcoin stand. Author Leah McGrath Goodman.

Dorian is a Japanese-American. Lives in California. But he was born in Beppu, Japan. His name at birth was Satoshi Nakamoto. Goodman shows that at the age of 23, Dorian changed his name to “Dorian Prentice Satoshi Nakamuto” in 1983, although he usually writes “Dorian S.” Nakamuto ‘.

He studied physics at Cal Poly University in Ponoma, California. He later joined the Classifieds Defense Project as a Systems Engineer. At the end of the project, he worked for a technology and economic information service company as a computer engineer. Goodman claims that Dorian confessed to him, “I am no longer associated with Osbe. And, I do not want to discuss this. The control of everything is now in the hands of man. I have no relation to Osbe anymore.”

With the publication of this article, the whole world fell in love. Asked later about this to Dorian, he said he thought Goodman had asked him about the classified defense project. That is why he gave such an answer. On March 7, 2014, a man by the pseudonym Satoshi Nakamuto sent a short message from his account on the Pitupi Foundation forum, “I am not Dorian Nakamuto.”

Image Source: p2pfoundation.ning.com

3: This unknown man with a pseudonym solved the Byzantine general problem in 2006 – blockchain. Blockchain is basically a distributed open laser. Simply put, open halakhata made with some blocks. Any transaction is immediately recorded in this book. It’s like having a halakhata in the office. However, this blockchain halakhata is open to everyone on the internet.

The Byzantine general said as a problem, everyone will immediately see when a general decides. Therefore, no one can sit without attacking if they want to. If you don’t attack, the rest will know it immediately.

It is regularly updated by volunteers. Volunteers are paid through cryptocurrency, not an organization, but the whole system.

To better understand the matter, let us consider an example. Suppose you send someone a bitcoin. Your bitcoin and that person’s address will be taken in a block, then inserted into a hash. Simplified, hash is a kind of encryption. It protects the transaction as well as ensures its authenticity. However, the block will have the address of the previous block in the chain or halkhata. The moment the block is added to the previous block, the transaction will be completed. In reality, all transaction information at a given moment is entered into a block, and the transaction is completed as soon as the block is added to the chain. Everyone knows that a transaction has taken place, but no one knows anything about the transactions. In this way block after block is formed by adding block after block.

The first experimental use of blockchain is called Bitcoin, a currency that no one has control over!

4:

Bitcoin is produced through mining. Simply put, after creating a new block by solving some algorithms, when the blockchain system confirms its authenticity, a new bitcoin is created. This method is called bitcoin mining.

Under the current blockchain system, 21 million bitcoins can be mined, which will take approximately 2040. Then new bitcoins can no longer be created. Due to the limited amount, the price of Bitcoin was increasing day by day and its use was also increasing. Many large companies have also started trading in cryptocurrencies.

A few days ago, on February 8 this year, it was reported that Elon Musk’s Tesla Inc. had bought য়ে 1.5 billion bitcoin. According to Tesla, all their products, electric cars, solar panels, etc. can be bought with Bitcoin. At the same time, the price of Bitcoin goes up a lot. Shortly afterwards, on April 26, Elon Musk tweeted. There he said,

Tesla will no longer sell any products on Bitcoin. We are concerned about the amount of fossil fuels being consumed in bitcoin mining and transactions, and the rate at which the use of fossil fuels is increasing day by day. Especially coal. The type of greenhouse gas emissions from coal burning is the most frightening of all fossil fuels.

Great as a cryptocurrency idea. And in our opinion, its future is also quite promising. But there is no way to move towards this future at the cost of ruining the environment.

Tesla will not sell any bitcoin. If Bitcoin Mining can move towards Sustainable Energy, we will start using Bitcoin again. We are also looking for other cryptocurrencies that consume 1 percent or less of Bitcoin’s energy per transaction.

Image Source: Twitter

Elon Musk here refers to the use of fossil fuels in bitcoin mining, which means that the amount of people who jump into bitcoin mining together consumes a lot of extra electricity. And this electricity is made by burning fossil fuels. And more and more people are getting up and down with it, and the consumption of electricity and the use of fossil fuels is increasing every moment. Tesla itself wants to reduce the cost of fossil fuels as much as possible. That’s why they are selling solar panels as well as solar roofs. Besides, it is undeniable that they are selling electric cars.

The debate over how appropriate Elon Musk’s tweet is is not stopping. In a tweet, Shangpeng Zhao, CEO of Binance Cryptocurrency Exchange, wrote:

When you drive using electricity, it is environmentally friendly. And when you manage the world’s most efficient economic network by consuming electricity, it becomes a threat to the environment.

Needless to say, Bitcoin and other cryptocurrencies have been severely damaged by Musk’s tweets. According to a May 13 CNN report, Bitcoin has fallen 12 percent. At the same time, the price of Etherium has dropped by 14 percent and the price of Elon Musk’s own cryptocurrency dose coin has dropped by 20 percent.

At the moment, the prices of Bitcoin and other cryptocurrencies are fluctuating rapidly. For example, at the time of writing, the price of Bitcoin has dropped. At the beginning of the writing, the price of Bitcoin was 3,080,98 rupees, but at the end of writing, it has become 3,07,534 rupees. In other words, the price has dropped to about 12 thousand rupees! Even so, the price of Bitcoin has risen by almost 6 percent today compared to yesterday!

The prices of Bitcoin and other cryptocurrencies have fallen sharply in the past. But cryptocurrency has overcome that push. Almost all economists and cryptocurrency analysts agree that currency free trading, which gives everyone the opportunity to buy and sell as they see fit, can be discarded so easily.

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