Africa's #1 Performance Marketing Community

POSTS
1491
TOPICS
267
MEMBERS
149240

An Overview Of How Crypto Currency Works

March 29, 2023

Cryptocurrency is a digital payment system that operates without the need for traditional banking institutions to validate transactions. It facilitates peer-to-peer payments globally, making it accessible to anyone with an internet connection. Instead of being physical currency, cryptocurrency is solely represented as digital records in an online database that records specific transactions. These transactions are publicly recorded in a ledger, and the cryptocurrency is stored in digital wallets.

The name "cryptocurrency" is derived from the use of advanced encryption techniques to verify and secure transactions. This encryption ensures the safety and protection of the data exchanged between wallets and the public ledger.

Bitcoin was the first cryptocurrency and was established in 2009, and it remains the most well-known today. Cryptocurrency's potential for high-profit trading attracts significant interest from investors, and this has led to occasional price surges driven by speculation.

HOW IT WORKS

Cryptocurrencies run on a distributed public ledger called blockchain, a record of all transactions updated and held by currency holders.

Units of cryptocurrency are created through a process called mining, which involves using computer power to solve complicated mathematical problems that generate coins. Users can also buy the currencies from brokers, then store and spend them using cryptographic wallets.

If you own cryptocurrency, you don’t own anything tangible. What you own is a key that allows you to move a record or a unit of measure from one person to another without a trusted third party.

Although Bitcoin has been around since 2009, cryptocurrencies and applications of blockchain technology are still emerging in financial terms, and more uses are expected in the future. Transactions including bonds, stocks, and other financial assets could eventually be traded using the technology.

EXAMPLES OF CRYPTOCURRENCY

There are thousands of cryptocurrencies. Some of the best known include:

Bitcoin:

Founded in 2009, Bitcoin was the first cryptocurrency and is still the most commonly traded. The currency was developed by Satoshi Nakamoto – widely believed to be a pseudonym for an individual or group of people whose precise identity remains unknown.

Ethereum:

Developed in 2015, Ethereum is a blockchain platform with its own cryptocurrency, called Ether (ETH) or Ethereum. It is the most popular cryptocurrency after Bitcoin.

Litecoin:

This currency is most similar to bitcoin but has moved more quickly to develop new innovations, including faster payments and processes to allow more transactions.

Ripple:

Ripple is a distributed ledger system that was founded in 2012. Ripple can be used to track different kinds of transactions, not just cryptocurrency. The company behind it has worked with various banks and financial institutions.


Apr 14, 2023 at 10:49 PM
I'm really interested in cryptocurrency
Apr 21, 2023 at 10:31 PM
Pls, I want to learn about abbitrage.
Aug 13, 2023 at 07:14 AM
Insight
Aug 14, 2023 at 01:18 PM
Pls I am interested