Everything about cryptocurrency
Cryptocurrency is digital currency. That means there are no physical coins or bills, everything is online. You can transfer cryptocurrency to someone online without an intermediary, such as a bank. Bitcoin and Ether are well known cryptocurrencies or digital money, but new cryptocurrencies continue to be created.
People can use cryptocurrencies for quick payments and avoid transaction fees. Some may obtain cryptocurrencies and digital money as an investment, hoping that their value will increase. You can buy cryptocurrencies with a credit card or, in some cases, obtain them through a process called “mining.” The digital money/cryptocurrency is stored in a digital wallet, either online, on your computer, or on other hardware.
Cryptocurrency mining is carried out using high-powered computers that solve complex computational mathematical problems. These issues are too complicated so they cannot be solved by hand and are complex enough to tax even the most incredibly powerful computers.
When someone sends bitcoins anywhere, it’s called a transaction. Transactions made in the store or online are documented by banks, point of sale systems and physical receipts. Bitcoin miners accomplish the same thing by grouping transactions into “blocks” and adding them to a public ledger called a blockchain. The nodes then keep records of those blocks so they can be verified in the future.
When bitcoin miners add a new block of transactions to the blockchain, part of their job is to make sure those transactions are accurate. In particular, bitcoin miners ensure that bitcoin does not double, a unique quirk of digital currencies called “double-spending.” With printed coins, counterfeiting is always a problem. But generally, once you spend $ 20 at the store, that account is in the employee’s hands. However, with digital currency it is a different story.
The most common types of cryptocurrencies
Bitcoin Possibly the “Kleenex” or “Coca Cola” of all cryptocurrencies, since its name is the most recognizable and the one most associated with the cryptocurrency system.
Litecoin, launched in 2011, was one of the first cryptocurrencies to follow in the footsteps of Bitcoin and is often referred to as “silver to Bitcoin’s gold.” It was created by Charlie Lee, an MIT graduate and former Google engineer. Litecoin is based on an open source global payment network that is not controlled by any central authority and uses “scrypt” as proof of work, which can be decoded with the help of consumer grade CPUs.
The first Bitcoin alternative on our list, Ethereum, is a decentralized software platform that allows you to build and run smart contracts and decentralized applications without downtime, fraud, control, or third-party interference. The goal behind Ethereum is to create a decentralized set of financial products that anyone in the world can have free access to, regardless of their nationality, ethnicity or religion. This aspect makes the implications for those in some countries more compelling, as those without state infrastructure and state IDs may have access to bank accounts, loans, insurance, or a variety of other financial products.More about Ethereum
Polkadot is a unique proof-of-stake cryptocurrency that aims to provide interoperability between other blockchains. Its protocol is designed to connect permissionless and permissionless blockchains, as well as oracles to allow systems to work together under one roof.
Tether was one of the earliest and most popular of a group of so-called stablecoins. Tether and other stablecoins try to smooth out price fluctuations to attract users who might otherwise be cautious. The price of Tether is directly linked to the price of the US dollar.