What is cryptocurrency and how does it work : (What is Cryptocurrency, What is Blockchain, How Cryptocurrencies Work, Features of Cryptocurrencies)
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| What is cryptocurrency and how does it work |
Also Read....What Is Bitcoin how to buy?
What is Cryptocurrency
Cryptocurrency is a virtual currency i.e. it is a digital currency which is used to buy goods or services. It is decentralized digital money which is based on blockchain.
What is Blockchain
Blockchain is a digital ledger by which records can be kept safe. Blockchain technology consists of many blocks and they contain data and they are interconnected.
How cryptocurrency works
Cryptocurrency is based on Blockchain and the data of transactions in cryptocurrencies is kept in blocks and their security is done by Cryptocurrency Mining and those who do the work of mining cryptocurrencies. They are called Minors
Features of cryptocurrency
- Cryptocurrency is a form of digital asset
- It is based on decentralization that means it is not controlled by any one person, that is, it is not controlled by any one person.
- Cryptocurrencies can be exchanged
- It is virtual i.e. it is available online only
- It has transparency as most of its code is open source
History of Cryptocurrency
In 1983, David Chaum, an American cryptographer, thought of a cryptographic electronic currency called eCash and in 1995 he created it and later named it DigiCash, a software for cryptographic electronic payments. It is needed with the help of which many main tasks are done.
In 2009 the first decentralized cryptocurrency was created by developer Satoshi Nakamoto and named Bitcoin. It uses the SHA-256 cryptographic hash function.
Total Cryptocurrency
According to a report by Statista, there are about 6000 cryptocurrencies in the whole world in October 2021 and this has increased a lot compared to the previous years, their number was around 66 in 2013 and about 506 in 2014, 562 in 2015, about 644 in 2016, 2017. About 1335 in 2018, about 1658 in 2018, about 2817 in 2019
Famous Cryptocurrency
- Bitcoin
- Ethereum
- Binance Coin
- Litecoin
What is bitcoin
Bitcoin is a cryptocurrency. This cryptocurrency was conceived in 2009 by an unknown person and later this person's name is Satoshi Nakamoto. There is no bank or intermediary relationship between bitcoin transactions. It is a digital currency. Bitcoin can be bought or sold through a bitcoin exchange.
What is Ethereum
Ethereum is a cryptocurrency that was conceived by a programmer, Vitalik Buterin, in 2013. It was released or live on July 30, 2015. Vitalik Buterin is also the co-founder of Bitcoin Magazine. The code for this cryptocurrency is Go, Rust, C hashes, C plus plus and Java, were written in Python
What is Binance Coin
Binance Coin is a cryptocurrency that was launched by the Binance cryptocurrency exchange in July 2017 40% coins, 10% coins were distributed to the investor
What is Litecoin
Litecoin is a cryptocurrency. This coin was created by Charlie Lee and it was released on 7 October 2011. Litecoin is based on the open source code of bitcoin. Only about 84 million Litecoins can be created.
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