Cryptocurrency
Crypto + Currency
Crypto - Hidden or Secret
Currency - A system of money
Below is a list of six things that every cryptocurrency must be in order for it to be called a cryptocurrency.
- Digital : Cryptocurrency only exists on computers.
- Decentralized : Cryptocurrencies don’t have a central computer or server. They are distributed across a network of (typically) thousands of computers.
- Peer-to-Peer : Cryptocurrencies are passed from person to person online. Users don’t deal with each other through banks, PayPal or Facebook. They deal with each other directly.
- Pseudonymous : This means that you don’t have to give any personal information to own and use cryptocurrency. There are no rules about who can own or use cryptocurrencies.
- Trustless : No trusted third parties means that users don’t have to trust the system for it to work. Users are in complete control of their money and information at all times.
- Encrypted : Each user has special codes that stop their information from being accessed by other users. This is called cryptography and it’s nearly impossible to hack.
- Global : Cryptocurrencies can be sent all over the world easily. Cryptocurrencies are currencies without borders.
Check Out Cryptocurrency Introduction Video By The Hindu On Our Telegram Channel
Now you have a basic knowledge of cryptocurrency. Now I am going to explain basic terms of cryptocurrency.
CRYPTOGRAPHY
Simply it is a art of encoding and decoding.
It is a method of storing and transmitting data in a particular form so that only those for whom it is intended can read and process it.
MINING
When users do tranjections through cryptocurrency then all miners get a cryptographic equation to solve (through computers) and the first miner to solve it will gain a cryptocurrency which is not in market i.e. it is called mining.
This process involves validating data blocks and adding transaction records to a public record (ledger) known as a blockchain.
Mine your BITCOIN online without investment :- Link
BLOCKCHAIN
Blockchain is a system of recording information in a way that makes it difficult or impossible to change, hack, or cheat the system.
MINERS
Miners are computers which solve the complex mathematical equation first and mine new cryptocurrency as its reward.
WALLET
Cryptocurrency wallets are software programs that store public and private keys and enable users to send and receive digital currency and monitor their balance.
Part 2 :- Link
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