Cryptocurrency was first introduced 10 yrs later by the japanese american physicist ”Satoshi Nakamoto” who developed the bitcoin’s,authored the bitcoin white paper, and created and deployed bitcoin’s original reference implementation.His goal was to invent something that many people failed to create before digital cash .
HOW CRYPTOCURRENCY WORKS ?
Cryptocurrency is an internet-based medium of exchange which uses cryptographical functions to conduct financial transactions. Cryptocurrencies leverage blockchain technology to gain decentralization, transparency, and immutability.
The most important feature of a cryptocurrency is that it is not controlled by any central authority.The decentralized nature of the blockchain makes cryptocurrencies theoretically immune to the old ways of government control and interference.
Cryptocurrencies can be sent directly between two parties via the use of private and public keys. These transfers can be done with minimal processing fees, allowing users to avoid the steep fees charged by traditional financial institutions
WHAT IS BLOCKCHAIN ?
At first the blockchain might seem complex but in reality, it’s very simple. The blockchain is just another type of database for recording transactions – once a transaction occurs, it is copied to all of the computers in a participating network and this is sometimes referred to as a ‘distributed ledger’.
Data is stored in ‘blocks’, and there are two main features about ‘blocks’ to know:
- Content: mainly a list of instruction statements and digital assets (such as transactions made) and the amounts and addresses of the parties to those transactions.
- Header: metadata, such as unique block reference number, the time the block was created, and a link back to the previous block .
- Given the latest block, it is possible to access all previous blocks which are linked together through a chain (blockchain). As participants in the network grow it becomes harder for malicious actors to overcome the verification processes that are completed by the community (Deloitte corporation, 2016).
WHAT ARE THE MINERS ?
Mining is a way to create bitcoins. A core motivation to mine is the ability to stay anonymous. If you solve a block (a lot of computing power is necessary to achieve this, but once solved, you are remunerated with bitcoins) and use Tor (anonymous browser) it is possible to obtain bitcoins while remaining completely anonymous (Sterry, 2012).
Bitcoin can be simplified into three things: first, is the set of rules (protocol) that dictates how the network should be operated; second is the software that actualizes the protocol; the third point is the large network of computers that run the software that enables the protocol. Essentially, this is a chain of computers that serve as the fundamental basis of the system. That activity of the third point is what is called mining. The process of mining involves verifying transactions, collecting transaction fees, preventing double-spending, and creating the currency supply. Mining is also a computational protection for the system since a large amount of processing power is being piled on top of past transactions. Miners verify transactions by assessing them against previous transactions. Transactions cannot spend bitcoins that were spent before or do not exist. They must adhere to the rules defined by the protocol
Mining and blockchain are the keys that enable a cryptocurrency and both of these are just at the beginning stages.
CRYPTO CURRENCY LIST:
While Bitcoin remains by far the most famous cryptocurrency and most other cryptocurrencies have zero non-speculative impact, investors and users should keep an eye on several cryptocurrencies. Here we present the most popular cryptocurrencies of today.
Amongs all bitcoin’s remains the most famous cryptocurrency, and After seven years in existence, Bitcoin’s price has increased from zero to more than 650 Dollar, and its transaction volume reached more than 200.000 daily transactions.