proof of stake, and Ethereum challenges are discussed. Token systems and

decentralized file storage, which are applications of Bitcoin, are

enumerated. A comparison of Bitcoin and Ethereum is also presented.

After reading this chapter, you will thoroughly understand the concepts

involved in cryptocurrency and take your learning further by j oining

various blockchain communities and visiting Bitcoin forums on Reddit,

crypto vlogs on YouTube, and blockchain news on Coindesk. You will be

able to conceptually grasp the technicalities of cryptocurrency and its usage

in contemporary times, helping you to take this knowledge ahead in your

academic j ourney and profession as well.

Evolution of money

The need to facilitate the exchange of goods and services led to the

evolution of money.

Money in the form of commodity, metallic, paper, and the bank is trailed as

the evolution of money, being an important invention in contemporary

times having undergone a process of historical evolution.

Money is the entity that stores wealth and savings and makes transactions.

We know that during the old days, money never existed, and the barter

system was in place. Eventually, physical coins came into existence, and it

was in the form of leather and different metal, including silver, gold, and so

on. After the paper currency came into existence. The banking system

infused the credit money concept through cheque and demand draft. With

system networking, plastic money, i.e., credit card and debit card, came as a

supplement to paper currency.

Money has finally become high-tech today due to many innovations and

technological advancements that act like a symbol of the commercial

structure we operate in.

E-money is impersonal and virtual, always pre-paid. Stored on a computer

system or a smart card chip is a coded digital message which has a value

allocated to it by the private issuer of any form of e-money. A fixed

reimbursement value is guaranteed by the issuer.

Virtual money in the form of Google Pay and Paytm exists.

Cryptocurrency is one more addition to the form of money.