What is Cryptocurrency

What is Cryptocurrency

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What is Cryptocurrency?

Cryptocurrency is a digital and virtual currency which means there’s no physical currency or coin or bill. It is a new form of digital asset based on a network that is distributed across a large number of computers. Cryptocurrency is secured by cryptography that to provide secure online transactions which makes it nearly impossible to counterfeit or double-spend. Cryptocurrencies can be used to buy goods and services and it works using a technology called Blockchain. Blockchain is a decentralized technology spread across many computers that manage and record transactions.

Cryptocurrency is not controlled by any central authority and government. It means cryptocurrency stored online does not have the same protections as money in a bank account. If you store your cryptocurrency in a digital wallet provided by a company, and the company goes out of business or is hacked, the government may not be able to step and help get your money back as it would with money stored in banks or credit unions.

The History of Cryptocurrency:

Cryptocurrency is simply decentralizing of electronic money that emerged as a side product of another invention. Although the concept of cryptocurrency has come in the 1990s but it came in limelight in 2009 when Bitcoin was invented. In the meantime, various versions of cryptocurrencies came and failed. Satoshi Nakamoto (now also known as Craig Steven Wright), the unknown inventor of Bitcoin, the first and still most important cryptocurrency, never intended to invent a currency. The vision of Bitcoin was to create a decentralized currency system that did not require the involvement of banks or any other intermediaries. Satoshi said he developed “A Peer-to-Peer Electronic Cash System” and that was the birth of Cryptocurrency.

How Cryptocurrencies works:

Cryptocurrency is a decentralized currency system where you do not have the server so every single entity of the network to do this job. Every peer in the network needs to have a list with all transactions to check if future transactions are valid or an attempt to double spend. You can understand with this example.

As cryptocurrency is a Peer-to-Peer Electronic Cash System – transactions are sent between peers using software called “Cryptocurrency Wallets.” The person creating the transaction uses the wallet software to transfer balances from one account (a public address) to another. To transfer funds, knowledge of a password (a private key) associated with the account is needed. Transactions made between peers are encrypted and then broadcast to the cryptocurrency’s network and queued up to be added to the public ledger. Transactions are then recorded on the public ledger via a process called “mining”. All users of a given cryptocurrency have access to the ledger if they choose to access it. The transaction amounts are public, but who sent the transaction is encrypted (transactions are pseudo-anonymous). Each transaction leads back to a unique set of keys. Whoever owns a set of keys, owns the amount of cryptocurrency associated with those keys (just like whoever owns a bank account owns the money in it). Many transactions are added to a ledger at once. These “blocks” of transactions are added sequentially by miners. That is why the ledger and the technology behind it are called “block” “chain.” It is a “chain” of “blocks” of transactions.

List of Cryptocurrency:

Cryptocurrency Market Capitalization
Bitcoin (BTC) $ 303.1 Billion
Ethereum (ETH) $ 14.14 Billion
Ripple (XRP) $ 11.7 Billion
Litecoin (LTC) $ 4.98 Billion
Bitcoin Cash (BCH) $ 4.1 Billion
Tether (USDT) $ 4.1 Billion
EOS (EOS) $ 2.9 Billion
Binance Coin (BNB) $ 2.4 Billion
Bitcoin SV (BSV) $ 1.5 Billion
Stellar (XLM) $ 1.2 Billion

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