Cryptocurrency a word we often hear in today's economic world. What is it? How is it evolved and what advantages it has over normal currencies.
Before diving into the details of cryptocurrency lets take a look at the economy that we live in. The currency that we use in our daily life is managed, printed and distributed by the governments through various banks. What is the problem with that ? Bank transactions are not open. Only the entities (person or organisations) involved and the bank has access to transaction details. Possibility of corruption is high there. Plenty of examples we have. Take the
PNB case for instance. Illegal money transfer in huge quantities can’t be facilitated without the help from inside the banks. Massive financial leaks shakes the economy of a country.
Cryptocurrency is a solution. For a transparent economy what we need is a transparent ledger. Cryptocurrency is founded on this principle. The ledger is transparent, distributed and tamper proof.

Litecoin, Ethereum, Bitcoin, Monerio, Ripple, etc. are some cryptocurrencies available in the market. Take bitcoin for instance. One of the main technology (among may other) used to realize bitcoin is Blockchain.
Blockchain: Each bitcoin transaction is entered into a publicly distributed ledger. And all the transactions are verified and authenticated by cryptographic algorithms. The Ledger is distributed and is synchronized on multiple servers spread geographically apart.
The ledger which has enough entries (transactions) is called a block. It is then passed through an SHA algorithm.

SHA ( hash of previous block + current block + n ) = 0000000…0001010101101010…..0010101100101011
where ‘n’ is a big number which makes the first specific number of the result as zeros. The only way to find ‘n’ is sequentially checking one by one. This is the job of miners. They uses their IT infrastructure to find out this number and attach the total hash to the block. For their work they will get paid by some fraction of bitcoins from the issuers involved in the transactions on that block.

This block is then attached to the existing distributed and solved chain of blocks, hence the name blockchain. Once attached the transactions in that block in finished. The figure below gives a better idea on how blockchain is realised.

Since it is a distributed ledger anyone ( with proper access ) can trace back to all of the transactions that took place since inception. The cryptographic signatures makes the data tamper proof. Each hash calculation involved previous hash and therefore tampering this chain of information is impractical.
Cryptocurrency is the future. We are on the initial stages of an entirely new kind of economy. Latest trends in this space like IOTA confirms a bright future for it. Though with restrictions many
countries legalised cryptocurrencies.