Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), EOS, Stellar (XLM) and a lot more are a few examples of cryptocurrencies. If the term is still new to you, then let me give you an quick idea on what is cryptocurrency.
Cryptocurrency is a form of digital money or a digital currency. Yes, it is definitely the new monetary way being used for transacting, paying and compensating.
Today, people may still find this as an odd thing to use. Just like how credit cards started before, Cryptocurrencies are also in the state of trying to convince people that it is usual. Though, a year or so from now, you will never know most of the people you know are using cryptocurrencies like BTC, ETH and a lot more.
This blog today will give you a few information about cryptocurrencies. You can also check piyasacilar, a website showing the different cryptocurrencies and their values. But today, lets discuss what is cryptocurrency?
Cryptocurrencies: What Is It?
Again, cryptocurrency is a decentralized digital money. It’s a virtual currency designed to work as a medium of exchange. It is incorporated with cryptography to secure and verify transactions. It also control the creation of new units of a particular cryptocurrency.
Not only that, these digital moneys are also limited in entries in a database which makes it harder for anyone to chance unless specific conditions are fulfilled. With that said, it is guaranteed that using Bitcoins, Ethereum’s, and all those kinds of cryptocurrencies are safe and sound and highly secured.
How Does Cryptocurrencies Work?
Now, cryptocurrencies is consists of three bodies to work. These are…
- The public ledgers. All transactions are stored in a public ledger. The identities of the coin owners are encrypted and they system uses other cryptographic techniques to make sure the legitimate record keeping. This ledger also ensure that it can calculate an accurate spendable balance.
- A transfer of funds between two digital wallets is called a transaction. That transaction will be submitted to the public ledger then awaits for the confirmation. Wallets are then used as encrypted electronic signature once the transaction is made.
- This is basically the process of confirming transaction and adding them to the ledger. For a transaction to be added to the ledger, the user, or otherwise called miner, must first solve an increasingly-complex computational problem, or it’s basically like a mathematical problem to verify the transaction is really legitimate.
For other more information concerning cryptocurrencies, or their values, you can head on to piyasacilar at www.piyasacilar.com.