What is Cryptocurrency?
Cryptocurrency isn’t a new word to the public, as it’s one of the most mentioned word in the technology platform. Both the literate and illiterate mention the word but that doesn’t mean everyone really knows what it is
What is Cryptocurrency?
Why do people look at you strangely when they heard you haven’t invest in Cryptocurrency
You also see people so glad and joyous because they invest in Cryptocurrency
What is this Cryptocurrency?
Cryptocurrency is a digital cash (just like a regular currency as your Naira, Dollar, Euro, Cedes, Pounds and many other currency) and each individual currency coin is fundamentally just a collection of numbers and letters (just like physical money).
Cryptocurrency wallet is like a bank account number, just that your identity isn’t attach to the Crptocurrency wallet like Bank account number as no personal information is required, so if currency is in your Crptocurrency wallet no one can access or monitor it like your money in bank that CBN has access to, it’s owned by you and only you have access to it. No one can shut down or block your crypto currency wallet because only you have total access to it at all time.
But then there’s a disadvantage
If you lose your crypto wallet and no recovery phrase, you lose your account forever. Instead of bank and government keeping track of one’s bills and bank account, the records are stored across computers connected to a cryptocurrency network. This transaction and account balances are public and can be viewed by anyone using a block chain explorer. Also computers earn cryptocurrency for processing a transaction on a cryptocurrency network, this makes devices to join the network to earn cryptocurrency and the connections of computer devices is what makes it secure because there is no single point of failure, and this is called decentralization
Note If you’ve any question to this point, click https://twitter.com/dolucof and ask me your questions.
Decentralization is the use of protected and a privacy system to access the web, click on https://www.linkedin.com/posts/faith-olufunso-3b8418218_blockchain-centralization-socialmedia-activity-6892539409359548416-5cXX to read more on that.
Decentralization is the opposite of centralized setups of government and bank. Just as there are hundreds of regular currency, so are there thousands of cryptocurrency.
And not all cryptocurrency are to be used for day to day transactions, some are not.
Broadly speaking there are two types of cryptocurrency
That is the COIN and TOKEN.
Cryptocurrency coin belongs to cryptocurrency network that were built from the ground up and are given to computers when they process transaction of a CCN for example is BTC. Bitcoin (BTC) is given to computer to process transaction of a BTC Network.
There are just dozens of Crypto currency coin and tens of thousands of crypto currency token, because crypto currency coin are so hard to make from scratch.
NFTs is a common name, and with the full name Non fungible token you should be aware it’s a token.
Lots of things are to be said under crypto currency, just follow me to keep posted, as I would drop the continuation of this article soon “What is Cryptocurrency 2"
I remain Olufunso Faith, a writer and Crypto enthusiast.