Cryptocurrency || What is Cryptocurrency ??

What is cryptocurrency?

Basically Cryptocurrency is a digital or a virtual currency that uses cryptography for security and it will be operated on a decentralized network of computers.

Cryptocurrencies are based on blockchain technology.

Some of popular cryptocurrencies are Ethereum, Ripple, Litecoin, Bitcoin and many others.

 

• Here are some key features of cryptocurrencies :-

1) Decentralization :

Most of the cryptocurrencies are operate on decentralized networks, it means there is no central authority or government to controlling the currency. This can be achieved through blockchain technology.

 

2) Blockchain Technology :

Cryptocurrencies depends on blockchain, which is a distributed log that records all the transactions across a network of computers.

This technology establish transparency, security, and immutability of transaction records.

 

3) Transparency : 

All transactions are publicly available on the blockchain.

 

4) Cryptography :

Cryptocurrencies use cryptographic approach to control the creation of new units of currencies.

 

5) Security : 

Cryptography protects transactions from fraud and theft.

 

6) Volatility :

The prices of cyptocurrency can be highly volatile.

Component such as market demand and technological advancements can influence prices.

 

• Popular types of cryptocurrency :-

1) Bitcoin : The first and most well-known cryptocurrency.

2) Ethereum : A platform for decentralized applications.

3) Ripple : A cryptocurrency designed for cross-border payments.

4) Tether : A stablecoin pegged to the US dollar.

5) Litecoin : A faster and cheaper alternative to Bitcoin.

 

• How cryptocurrency will works :-

1) Transactions : End users can initiate transactions using cryptocurrency wallets.

2) Verification : Transactions are verified by network nodes using cryptography.

3) Blockchain : Verified transactions are added to blocks on the blockchain.

4) Completion : Transactions are considered complete and permanent.