The main motive of this blog is to help the beginners, who are new to this cryptocurrency space.
To show them basics of it and get used to this crypto world.
So,before jumping to crypto lets us know that What are they? ,History & How they work?
What are they???
=> Cryptocurrency are the digital money with blended with cryptography having monetary value.
=> Cryptography is used to secure the transactions and to control the creation of new coins.
=> Unlike centralized banking system, where governments control the value of a currency like USD through the process of printing fiat money, government has no control over cryptocurrencies as they are fully decentralized.
=> Most cryptocurrency are designed in such a way that their production decrease over time (Bitcoin).
History of Cryptocurrency:
=> The first cryptocurrency was Bitcoin. Bitcoin was created in 2009 by a pseudonymous developer named Satoshi Nakamoto.
=> Satoshi described it as a ‘peer-to-peer electronic cash system.’ It is completely decentralized, meaning there are no servers involved and no central controlling authority. The concept closely resembles peer-to-peer networks for file sharing.
How they work??
=> They work on BLOCKCHAIN .
=> A public ledger of all transaction that ever happened within the network, available to everyone. Therefore, everyone in the network can see every account’s balance.
=> Every transaction is a file that consists of the sender’s and recipient’s public keys (wallet addresses) and the amount of coins transferred. The transaction also needs to be signed off by the sender with their private key. All of this is just basic cryptography. Eventually, the transaction is broadcasted in the network, but it needs to be confirmed first.
=> Only miners(people with powerful computers or ASICs) can confirm transactions by solving a cryptographic puzzle. They take transactions, mark them as legitimate and spread them across the network. Afterwards, every node of the network adds it to its database. Once the transaction is confirmed it becomes unforgeable and irreversible and a miner receives a reward, plus the transaction fees.
Guys these are just brief description about the cryptocurrency .If you want detailed information about it please refer to the link below for detailed understanding
Cryptocurrency Guide- link 1
Cryptocurrency Guide- link 2
Cryptocurrency Guide- link 3
Hope it helped
HAPPY LEARNING
Next article will be about basic terminology in crypto world .So Stay Tuned
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