Cryptocurrency meaning – Cryptocurrency is a digital or virtual currency that uses cryptography for security and is decentralized, meaning it’s not controlled by any government or financial institution. It’s a digital asset designed to work as a medium of exchange, using cryptography to secure and verify transactions.
What is Cryptocurrency- Cryptocurrency is a digital payment system that doesn’t rely on banks to verify transactions. It’s a digital asset designed to work as a medium of exchange, using cryptography to secure and verify transactions. It’s a peer-to-peer system that can enable anyone anywhere to send and receive payments. When you transfer cryptocurrency funds, the transactions are recorded in a public ledger. Cryptocurrency is stored in digital wallets.
The first and most well-known cryptocurrency is Bitcoin, launched in 2009 by an anonymous individual or group using the pseudonym Satoshi Nakamoto. Much of the interest in cryptocurrencies is to trade for profit, with speculators at times driving prices skyward.
How does it work?
Cryptocurrencies use a decentralized technology called blockchain to record transactions. A blockchain is a public ledger that contains a record of all transactions made on a particular cryptocurrency network.
New cryptocurrency coins or tokens are created through a process called mining, which involves solving complex mathematical problems.
The verified transaction is recorded on the blockchain, which updates the ledger and ensures that the transaction is permanent and tamper-proof. The cryptocurrency is transferred from the sender’s digital wallet to the recipient’s digital wallet.
Cryptocurrencies are traded on online exchanges, where users can buy, sell, or exchange cryptocurrencies for other digital assets or traditional currency. cryptocurrencies and applications of blockchain technology are still emerging in financial terms, and more uses are expected in the future. Since the launch of Bitcoin, hundreds of other cryptocurrencies, known as altcoins, have been created, each with its own unique features and uses.
For Example:
There are thousands of cryptocurrencies. Some of the best known include:
Bitcoin: – Founded in 2009 by Satoshi Nakamoto, Bitcoin was the first cryptocurrency and is still the most commonly traded. It has the limited supply of 21 million coins. Often used for decentralized finance (DeFi) applications
Ethereum: – Developed in 2015, Ethereum is a blockchain platform with its own cryptocurrency, called Ether (ETH) or Ethereum. It is the most popular cryptocurrency after Bitcoin. Often used for Decentralized finance (DeFi) applications.
Litecoin: – Created in 2011 by Charlie Lee, this currency is most similar to bitcoin but has moved more quickly to develop new innovations, including faster payments and processes to allow more transactions.
Ripple: – Created in 2012 by Chris Larsen and Jed McCaleb, Ripple can be used to track different kinds of transactions, not just cryptocurrency. The company behind it has worked with various banks and financial institutions.
Non-Bitcoin cryptocurrencies are collectively known as “altcoins” to distinguish them from the original.