Understanding Cryptocurrency: A Beginner's Guide
Cryptocurrency is an electronic type of currency used for online services which employs the use of cryptography to ensure the authenticity of the currency so that a coin cannot be used more than once. It works on a system known as blockchain, which is a distributed system present on several computers that helps in managing and registering transactions. #1 What is Cryptocurrency? Definition: Money of electronic nature that is safeguarded by use of mathematics. Key Feature: Democratization, it is not owned or operated by a central top and has no government affiliation. #2 How Does It Work? Blockchain Technology: Recording of transactions is done in a public database of a specific kind known as blockchain to enhance on security and transparency. Mining: The deed of confirming transactions and compiling them to the block, which at times involves solving of arithmetic problems. #3 Types of Cryptocurrencies: Bitcoin (BTC): The first one that wa...