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What is cryptocurrency?

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Written by   157
7 months ago

Hi all.I'm writing about crytocurrency.So let's start:-

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What Is a Cryptocurrency?

A cryptocurrency is a digital or virtual currency that is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend. Many cryptocurrencies are decentralized networks based on blockchain technology—a distributed ledger enforced by a disparate network of computers.

A defining feature of cryptocurrencies is that they are generally not issued by any central authority, rendering them theoretically immune to government interference or manipulation

A cryptocurrency is a new form of digital asset based on a network that is distributed across a large number of computers. This decentralized structure allows them to exist outside the control of governments and central authorities.

The word “cryptocurrency” is derived from the encryption techniques which are used to secure the network.Blockchains, which are organizational methods for ensuring the integrity of transactional data, is an essential component of many cryptocurrencies.Many experts believe that blockchain and related technology will disrupt many industries, including finance and law.

Cryptocurrencies face criticism for a number of reasons, including their use for illegal activities, exchange rate volatility, and vulnerabilities of the infrastructure underlying them. However, they also have been praised for their portability, divisibility, inflation resistance, and transparency.
Understanding Cryptocurrencies

Cryptocurrencies are systems that allow for the secure payments online which are denominated in terms of virtual "tokens," which are represented by ledger entries internal to the system. "Crypto" refers to the various encryption algorithms and cryptographic techniques that safeguard these entries, such as elliptical curve encryption, public-private key pairs, and hashing functions.

Types of Cryptocurrency:-

The first blockchain-based cryptocurrency was Bitcoin, which still remains the most popular and most valuable. Today, there are thousands of alternate cryptocurrencies with various functions and specifications. Some of these are clones or forks of Bitcoin, while others are new currencies that were built from scratch.


Bitcoin was launched in 2009 by an individual or group known by the pseudonym "Satoshi Nakamoto."
As of Nov. 2019, there were over 18 million bitcoins in circulation with a total market value of around $146 billion.

Some of the competing cryptocurrencies spawned by Bitcoin’s success, known as "altcoins," include Litecoin, Peercoin, and Namecoin, as well as Ethereum, Cardano, and EOS. Today, the aggregate value of all the cryptocurrencies in existence is around $214 billion—Bitcoin currently represents more than 68% of the total value.


Special Considerations:-

Central to the appeal and functionality of Bitcoin and other cryptocurrencies is blockchain technology, which is used to keep an online ledger of all the transactions that have ever been conducted, thus providing a data structure for this ledger that is quite secure and is shared and agreed upon by the entire network of individual node, or computer maintaining a copy of the ledger. Every new block generated must be verified by each node before being confirmed, making it almost impossible to forge transaction histories.

Many experts see blockchain technology as having serious potential for uses like online voting and crowdfunding, and major financial institutions such as JPMorgan Chase (JPM) see the potential to lower transaction costs by streamlining payment processing.4 However, because cryptocurrencies are virtual and are not stored on a central database, a digital cryptocurrency
Advantages and Disadvantages of CryptocurrencyAdvantages

Cryptocurrencies hold the promise of making it easier to transfer funds directly between two parties, without the need for a trusted third party like a bank or credit card company. These transfers are instead secured by the use of public keys and private keys and different forms of incentive systems, like Proof of Work or Proof of Stake.

 In modern cryptocurrency systems, a user's "wallet," or account address, has a public key, while the private key is known only to the owner and is used to sign transactions. Fund transfers are completed with minimal processing fees, allowing users to avoid the steep fees charged by banks and financial institutions for wire transfers.

Disadvantages :-

The semi-anonymous nature of cryptocurrency transactions makes them well-suited for a host of illegal activities, such as money laundering and tax evasion. However, cryptocurrency advocates often highly value their anonymity, citing benefits of privacy like protection for whistleblowers or activists living under repressive governments. Some cryptocurrencies are more private than others.

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Written by   157
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Comments

Crypto currency help us always, thanks for this article brother

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7 months ago

Most welcome brother 😍☺☺💜

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7 months ago

Informative article dear😍😍Though i don't have enough knowledge about the cryptocurrency.. But now it benefited for me. Thanks dear

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7 months ago

thank you so much my dear😍☺

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7 months ago

most welcome🥰

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7 months ago

my pleasure 😍

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7 months ago

Good topic. I really have not enough knowledge about cryptocurrency. Throughout your article, I can know about cryptocurrency. Thanks dear brother for sharing with us 💕💕

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7 months ago

thank you so much dear apu😍

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7 months ago

Nice brother

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7 months ago

thank you

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7 months ago

i don't know much about cryptography but reading your article i know very things about this thanks brother for sharing💝

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7 months ago

Good job dear this article is very informative keep it up dear

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7 months ago

Very informative article dear.Through this article I learn so many things.. it's a great article for me .hope you are shine this platform.I am Newbie here keep supporting me 😊😟💝

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7 months ago

it's a great achievement for me dear☺💜💜

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7 months ago

Very informative article bro

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7 months ago

thanks brother☺💜💜

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7 months ago

wow... cryptocurrency article is very info type

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7 months ago

thanks dear☺

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7 months ago

👍👍👍

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7 months ago