Cryptocurrency Fundamentals

 

Cryptocurrency has been there for a long time in the financial ecosystem. You should be aware that they have been around since 2009. The first cryptocurrency to have made an entry into our lives was Bitcoin. Then Ethereum followed suit. But what are they? You can call them basic mediums of exchange. They are virtual assets, too. They demonstrate some of the characteristics of a currency, but you cannot touch them. Some of the most popular cryptocurrencies in the market today are Bitcoins, Ethereum, Ripple, and Dogecoin. 

How Do They Work?

These are digital currencies, which banks, the government, or central banks cannot issue. There is a unique architecture behind each cryptocurrency, which is called cryptography. This ensures that the currency is not counterfeited. Encryption algorithms go behind all the expenditures so there are no chances of fraud as well. You will come across numerous other cryptocurrencies on a particular blockchain. 

Cryptocurrencies are mainly based on blockchain technology. This is a decentralized technology that organizes and records transactions, across a network of computers. You cannot delete or alter transactions, and that is what dissuades hackers from hacking the network or your currency. You need to undergo a two-stage authentication system to facilitate the transactions. The blockchain is automatically updated as you add new digital currencies.  Read More...

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