I am now starting to learn about cryptocurrency. It's difficult to start when you have nothing ideas about what you're trying to work out. Basics information I think is the best way to start learning.
What is Cryptocurrency? The basic question, they said, but for me, that is completely a tough one.
Cryptocurrency is an exchange medium based on the Internet that uses cryptographic functions to carry out financial transactions. To achieve decentralization, accountability, and immutability, cryptocurrencies exploit blockchain technology.
The foundation of a new form of the Internet was created by blockchain technology. The tech community has now found other possible applications for the technology, initially invented for the digital currency, Bitcoin blockchain.
The blockchain is an easy but ingenious way to transfer information in a fully automated and stable way from A to B. By forming a block, one party to a transaction initiates the process. Thousands, maybe millions, of computers spread across the net are checked by this block. A checked block is attached to a chain that is stored around the net, creating a unique record with a unique history, not just a unique record. Falsifying a single record would suggest falsifying the whole I
Blockchains can not only save on credit card transaction fees for the railway operator, they can transfer the entire ticketing process to the blockchain.
The most significant characteristic of a cryptocurrency is that it is not regulated by any central authority: the decentralized existence of the blockchain potentially renders cryptocurrencies immune to the old methods of control and intervention by the government.
Governance is becoming increasingly indispensable for any kind of institution, organization, or service, especially as it grows.
To be important to the present need, the governance style also needs to continue to change, but this is far easier said than done.
Initially, considering the limited user base, the blockchain used to be a governance-free framework. But better management calls for good governance as the scale and complexity have increased.
Cryptocurrency can be sent directly between two parties via the use of private and public keys. With minimal transaction fees, these transactions can be made, allowing users to escape the high fees paid by conventional financial institutions. It has become a global phenomenon that most individuals know about.
How does it work?
Cryptocurrency is an exchange medium based on the Internet that uses cryptographic functions to execute financial transactions. To achieve decentralization, accountability, and immutability, cryptocurrencies exploit blockchain technology. A cryptocurrency such as Bitcoin consists of a peer network. Each peer has a record of all transactions' complete history and thus of every account's balance.
The transaction is almost instantly known to the entire network. But it is only confirmed after a specific period.
Confirmation of cryptocurrencies is a crucial idea. Cryptocurrencies are all about validation, you might say.
Is pending and can be forged so long as a transaction is unconfirmed. It is set in stone when a transaction is authenticated. It is no longer forgeable, it can not be changed, it is part of the so-called blockchain, the immutable record of past transactions. Transactions can only be verified by miners. This is their role inside a network of cryptocurrencies. They take transactions, label them as legal, and distribute them across the network. Every node has to add it to its database after a transaction is validated by a miner. The blockchain has been part of it. For this work, the miners are compensated with a crypto-currency token.
Cryptocurrency mining
Essentially, anyone can be a miner. Because there is no power for a decentralized network to delegate this mission, a cryptocurrency requires some sort of structure to prevent it from being manipulated by one dominant group. Imagine having thousands of peers and spreading forged transactions with someone. It would break the system immediately. Satoshi set the rule that to qualify for this mission, the miners need to spend some work on their computers. They have to find a hash that connects the new block with its predecessor, a result of a cryptographic feature. It's called Proof-of-Work. It is based on the SHA 256 Hash algorithm for Bitcoin. Bitcoins can be generated only if a cryptographic puzzle is solved by miners. Since this puzzle's complexity increases the amount of computer power expended by the entire miner, there is only a particular amount of cryptocurrency token that can be generated in a given amount of time. This is part of the agreement that no network peer will break down.
A transaction can't be reversed after confirmation. Neither transactions nor accounts are linked to identities in the real world. On so-called addresses, which randomly tend to be chains of about 30 characters, you earn Bitcoins. Although the transaction flow can typically be analyzed, it is not generally possible to associate users' real-world identities with those addresses. Transactions are almost immediately propagated on the network and are confirmed in a few minutes. Since they arise in a global computer network, they are oblivious to your physical position. Cryptocurrency can be sent only to the private key holders. Solid cryptography and the magic of large numbers make this scheme difficult to crack.
Those aspects above must understand first before proceeding to the next step. And this is currently my schedule today. My reason why I do a study of cryptocurrency because I will try to trade. Trading without any idea of cryptocurrency isn't right to do.
Good one