What Is Crypto-Currency
Crypto-currency is a kind of digital currency which was built with a cryptographic protocol that makes transactions secure and also incredibly difficult to fake. One of the most important features of cryptocurrency is that it is not at all controlled by any kind of central authority. The decentralized nature of blockchain makes cryptocurrency theoretically immune to all the old ways of government controlling and interference as well.
Cryptocurrency has been known to make it easier to conduct any kind of transactions, for transfers which are simplified through the use of private and public keys for security and privacy purposes. These transfers can surely be done with minimal processing fees and also it allows users to avoid the steep fees which are charged by traditional financial institutions. Today cryptocurrency is known globally to most people, at least those who haven’t been living under a rock. While some people think it is geeky and do not understand it, banks, governments, and most companies are very aware of its significance. Beyond the noise and the press releases with the overwhelming majority of people having very limited knowledge about it and it being what it is, they usually fail to understand the concepts.
Cryptocurrency initially emerged as a kind of side product of another invention. Satoshi Nakamoto was the inventor of Bitcoin, the first and also still most important cryptocurrency. While announcing Bitcoin in the year 2008, Satoshi said he developed Bitcoin because he wanted to introduce a peer to peer electronic cash system. After seeing that all centralized attempts failed, Satoshi tried to actually build a digital cash system without a central entity.
His initial goal was to invent something that most people failed to create themselves; Bitcoin was indeed a happy unintended accomplishment. To realize digital cash, you should have a payment network with accounts and sufficient balances, and also these accounts must have the ability to carry out transactions. It is also a simple thing, and it is very easy to understand.
If and when you take away all the noise surrounding cryptocurrencies and ultimately reduce it to a simple definition, you will find it just to be a database that no one can change without accurately fulfilling certain specific conditions. Only miners will be able to confirm transactions. This is exactly what their job is in a cryptocurrency network. They take all the transactions and stamp them as legitimate and then spread them in the network. After said transaction is confirmed by the miner, every node has to add up to its database, and it has become a part of the blockchain. For this particular job, the miners will surely get rewarded with a token of cryptocurrency itself, most of the time with, Bitcoin. The miner’s activities are some of the single most important part of the entire cryptocurrency system.