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What is cryptocurrency: everything you need to know!

This introduction explains the most important thing about crypto-currencies. After reading it, you’ll know more than most people. Today, crypto-currencies have become a worldwide phenomenon known to most people. Although this phenomenon is still a little geek and misunderstood by the general public, banks, governments and many companies are aware of its importance. Click here for cryptocurrency exchange.

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What are crypto-currencies, concretely?

If you remove all the excitement around crypto-currencies and reduce them to a simple definition, you will find that they are only limited entries in a database that no one can modify without fulfilling certain conditions. It may seem trivial, but believe it or not, you are exactly defining a currency. Visit this site for cryptocurrency exchange.

Take the money from your bank account: what are other than entries in a database that can only be changed under specific conditions? You can even take coins and physical notes. What are they other than limited entries in a public physical database that can only be changed if you meet the requirement of physically owning coins and notes? Money is nothing more than a verified entry into a kind of database of accounts, balances and transactions.

How do miners create coins and confirm transactions?

Let’s look at the mechanism that governs crypto-currency databases. A cryptocurrency like Bitcoin consists of a peer-to-peer network. Each pair has a record of the complete history of all transactions and therefore the balance of each account.

An example for you

A transaction is a file that says “Bob gives X Bitcoins to Alice” and that is signed by Bob’s private key. It’s basic cryptography with public key, nothing special. Once signed, a transaction is broadcast over the network and sent from one peer to another. This is the basic peer-to-peer technology .Nothing special at all, again.