What is Cryptocurrency?
Cryptocurrency can be designated as a method of payment that can be exchanged online for services and goods.
It is a purely internet-based or virtual medium of currency exchange working on the system of cryptography or the cryptographical functions to initiate financial transactions.
- It is a decentralized medium of currency that uses Cryptography for verification and facilitation of every transaction.
- For obtaining decentralization, immutability, and transparency, cryptocurrency’s primary functions on Blockchain technology.
- Moreover, they are immune to the traditional methods and manner of government interference and control.
- The most appealing feature of Blockchain technology is security.
- Blockchain can be defined as a shared public ledger having all the transactions within a network to date.
- Every individual on the network has access to every transaction that occurs along with viewing the balances of other individuals.
- Various companies across the world have issued their currencies, known as tokens.
- The currency is issued by the companies can be specifically traded for the goods and services offered or provided by the company.
- The transaction of cryptocurrencies between two parties can be initiated through private and public keys.
- Moreover, comma cryptocurrency transactions can be completed with minimal processing fees as opposed to the fee charged by other financial institutions.
Bitcoin was introduced as the First cryptocurrency in 2009. However, various attempts before that were made to create a digital currency.
Read more for a better understanding of the basics of cryptocurrency.