What is Cryptocurrency?
Secure. Fast. Convenient. Simple. Cryptocurrency is a digital asset designed to work as a medium of exchange. It’s designed to make transactions secure.
Unlike regular money, the digital assets have no physical presence and differs from regular transactions by using decentralised control as opposed to central banking systems.
Normally in banking, corporate boards or governments control the supply of money by printing units of money or demanding additions to digital banking ledgers. However, in the world of cryptocurrency, the production of currency is generally capped. For example Litecoin consists of 84 million units, as opposed to Bitcoins 21 million.
The same is true of "altcoins" (alternative coins to bitcoin) - similar currencies which have been launched in Bitcoin's wake. These include Ethereum and Ripple, and their objective is to connect different payment systems together.
What is Bitcoin?
The most searched question on google in 2014
Bitcoin is the first decentralized peer-to-peer payment network that is powered by its users with no central authority or middlemen. In 2008, Satoshi Nakamoto envisioned people spending money without friction, intermediaries, regulation or the need to know or trust other parties, and thus Bitcoin came into the world.
What is Blockchain?
It is a database that is validated by a wider community, rather than a central authority. Individuals involved with the blockchain verify that its collection of records is correct, rather then relying on a single entity, such as a bank or government. Each “block” represents a number of transactional records, and the “chain” component links them all together with a hash function.
What is Crypto Mining?
Cryptocurrency mining includes two functions:
- Adding transactions to the blockchain (securing and verifying)
- Releasing new currency
Mining Bitcoin and other cryptocurrencies involves a computer solving a difficult mathematical problem with a 64-digit solution. For each problem solved, one block of Bitcoin is processed and the miner is rewarded with new Bitcoin.