What is Cryptocurrency? [A Complete Detailed Cryptocurrency Guide]
What is Cryptocurrency?
Cryptocurrency is a virtually encrypted currency which is backed by the security of cryptography.
The basic purpose of Cryptocurrency is to facilitate the easy transaction of money from one party to another and to keep a keen eye on the generation of currency units.
Cryptocurrency is one of those financial terms which aims to reduce the involvement of financial institutes in the transaction process.
You all must be aware of the fact that banks and financial intermediaries charge a huge amount of money before conducting any sort of monetary transaction. Cryptocurrency was introduced to solve the very similar problem.
Who Introduced Cryptocurrency and Why?
It won’t be wrong to state that originators of Cryptocurrency are still widely unknown however, some sources believe that foundations of cryptocurrency were established by Satoshi Nakamoto in 2008.
Now if we talk about the need of Cryptocurrency and how it aims to facilitate its users then, it is quite interesting to see that origin of cryptocurrency is directly connected with the digital cash system
Read Complete Guide Here : what is cryptocurrency
Key Concepts of Cryptocurrency
It is highly important to understand that the word cryptocurrency itself is a huge phenomenon, which is further divided into different units.
For getting information about some of the key concepts of cryptocurrency, continue to read on.
In literal terms, cryptography is basically the way of writing computer based codes, however, when it comes to the contextual meaning then, cryptography refers to the process of key encryption (public and private) which is used to monitor the procedure of coin creation and their transaction verification of cryptocurrency.
What is Cryptocurrency Hash?
If you are interested in the working of cryptocurrency work system then, you must have heard about the cryptocurrency hashes and their working mechanism.
Well, if you are still confused about its working then, read on!
Cryptocurrency hashes are basically the computerized mathematical algorithms that aim to extract the data of a certain size as input which is further processed with the help of valid operations and then, a fixed output is generated for the meaningful use.
It is important to understand that the major function of cryptocurrency hashes is to gain information about the passwords and store them accordingly. Because of the very same concept, the working of cryptocurrency hash is not just limited to mathematical algorithms however, it also aims to impact the security of the stored data.
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If you read the above explanation with keen interest then, you might ask the
question that what’s the difference between cryptocurrency and Bitcoin?
Well, to be honest, there is no big difference between the two terms because
Bitcoin is the first ever cryptocurrency which was launched in the year 2009.
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It won’t be wrong to call the Altcoin as the successful sister of Bitcoin because
more or less they both perform the similar kind of work.
However, according to the officials of Altcoin, this system is better than the Bitcoin
because it is stronger in nature and aims to add extra security to the entire
Check it out Complete : Altcoin
Now if we talk about another famous cryptocurrency by-product named as
Litecoin then, it is quite interesting to see that operations of Litecoin are backed
by the scrypt rather than SHA-256.
It is pretty evident that SHA-256 is quite famous amongst the cryptocurrency
users, however, in 2011, developers planned to give a try to the oldest platform
named as scrypt.
More At : Litecoin
Now it’s time to throw light on the working of the Ripplecoin, which consists of the
similar platform as of the Bitcoin.
Ripplecoin was basically launched into the market in 2011. At that time. Bitcoin and Litecoin were popular amongst the masses however, Ripplecoin was introduced with the different vision.
The basic purpose behind the launch was to equip users with an open source
network which is further backed by the SHA-256. Moreover, the developers had
the vision of introducing the PayPal for the digital currencies and they actually
become successful in convincing the people that Ripplecoin can work as the
Read More : Ripplecoin