What is crypto currency and How its Woking ?
cryptocurrency or crypto currency is a digital asset designed to work as a medium of exchange that uses cryptography to secure its transactions, to control the creation of additional units, and to verify the transfer of assets. currency associated with the internet that uses cryptography, the process of converting legible information into an uncrackable code, to track purchases and transfers. What is crypto currency and How its Woking
Cryptocurrencies are a type of digital currencies, alternative currencies and virtual currencies.Bitcoin was the first decentralized cryptocurrency. Cryptocurrency is a form of digital money that is designed to be secure and, in many cases, anonymous.
A cryptocurrency wallet stores the public and private “keys” or “addresses” which can be used to receive or spend the cryptocurrency.With the public key, it is possible for others to send currency to the wallet. Cryptocurrencies are used primarily outside existing banking and governmental institutions and are exchanged over the Internet.
Decentralized cryptocurrency is produced by the entire cryptocurrency system collectively, at a rate which is defined when the system is created and which is publicly known. In centralized banking and economic systems such as the Federal Reserve System, The validity of each cryptocurrency’s coins is provided by a blockchain
A blockchain is a continuously growing list of records, called blocks, which are linked and secured using cryptography. Each block typically contains a hash pointer as a link to a previous block, a timestamp and transaction data. By design, blockchains are inherently resistant to modification of the data. It is “an open, distributed ledger that can record transactions between two parties efficiently and in a verifiable and permanent way”. The block time is the average time it takes for the network to generate one extra block in the blockchain. cryptocurrency networks mining is a validation of transactions. For this effort, successful miners obtain new cryptocurrency as a reward.
Cryptocurrency is also used in controversial settings in the form of online black markets, such as Silk Road. (Silk Road is a online black market and the first modern darknet market, best known as a platform for selling illegal drugs )
History : In 1983 the American cryptographer David Chaum conceived an anonymous cryptographic electronic money called ecash.