What is Cryptocurrency?
First, let’s talk about what cryptocurrency is. Cryptocurrency is a digital currency which is designed as a medium of money exchange. To verify and secure transactions, it uses cryptography. Cryptography controls or secures the new unit creations of a particular cryptocurrency. Fundamentally, the cryptocurrency is the entries that are secured. So the entries are not allowed to be changed unless specific conditions are met.
Cryptocurrencies are Becoming More Prominent
An example of a cryptocurrency is Bitcoin. Bitcoin is a network of peer-to-peer payments. A complete history of all transactions are available to every member. This means they have access to the balance of every account on the network.
A transaction in cryptocurrency is nothing but a record file, which is encrypted. The sender protects the file with a private key-code. It is then broadcast to the network. Immediately, everybody on the network is aware of the transaction. But exchange will not be complete until it is confirmed. This is the critical and main concept in cryptocurrencies. Once it is confirmed, it can no longer be reversed. It becomes an absolute record of the transaction. It is then kept in the historical database i.e. a block-chain.
Why Cryptocurrencies are Used in Palestine
A small, emerging community of users is mounting in the West Bank and Gaza Strip. The Palestinian territories have started using Bitcoin.
According to local users, there are around 20 unofficial offices. These offices are dealing in cryptocurrencies. For them, it is quicker, cheaper, and most importantly safer. It even helps censorship-resistance.
Palestine is an economically and politically secluded part of the world. Hence, Cryptocurrency is becoming an integral part of Palestinian lives. This is because it is unique in terms of security and adaptation.
Palestine doesn’t have any national currency. So they use foreign currencies. So they don’t face hyperinflation like other countries. For example, Turkey, Iran, and Venezuela deal with hyperinflation a lot. These countries have a limited supply of digital currency.
Palestine is a place with no banks. No international payment gateways like Paypal are available. Bank accounts of supporters from the West are blocked. So cryptocurrency has become the obvious choice. Anyone can conduct peer-to-peer transactions. Therefore, it solves the restricted economical accessibility of Palestine.