Crypto currency Introduction
Posted By Kishor Kumar Singh | 31-Dec-2018
What are cryptocurrencies?
Cryptocurrencies are digital currencies which we can use to digitally transfer money to another person safely, without having, use of the intermediaries or trusted third parties, like a bank or Visa, let's suppose, to verify that you have sent the money and also the cash is currently now not yours. In addition, it works it much faster at a fraction of the cost as a result of it will away with excess and pricey dealing fees.
Why 'cryptocurrencies' we should use?
The main important part of using this is that provides us with the security, unlike the real currency. It is in the Encryption form (hence the name cryptocurrency).
What is the blockchain?
It is the chain where all the transactions are kept just like we kept our money in the bank. Thousands of computers around the world are connected along to show this ledger.
They get refresh and keep updating in the few minutes all these are linked together in this way is called the blockchain. You can trust it because each transaction has been verified again and again by all the computers (the blockchain).
How does this work?
Imagine I send you ten bucks and you send the ten bucks to some other person. Somehow somebody must keep track of those transactions, to avoid forgeries or anyone claiming they haven’t received the money. In the past, Central Banks or banks have unbroken details of the dealing on one thing referred to as a ledger. This is based on a centralized system. With Bitcoin, currently the main digital currency, the entire system was turned on its head. Instead of a centralized system dominant the ledger, currently, thousands of computers, all around the world, each keeps a copy of this Ledger. Every single transaction is kept there, from the beginning to the present day. This is a decentralized system, called the ‘blockchain’.Please note that cash in itself doesn't have any intrinsic price – it's solely because we have a tendency to believe that it's the price that it values something. Money is just a tracking system – we have a tendency to track what we have a tendency to own and what we have a tendency to owe. This is called a ledger. no matter type of cash exists, we have a tendency to provides it price owing to its utility as a ledger (or trailing system of UN agency owes what). That’s what the blockchain is –
a giant decentralized ledger.