All about Cryptocurrency
The term crypto is defined as a digital asset that can be used as a medium of exchange, in simple words it can be defined as digital money. This currency can be used as traditional currency but can be used digitally as it doesn’t exist physically. These cryptocurrencies don’t have and are not held by any central authority to maintain as it is based on a decentralized network.
Cryptocurrencies work on decentralized distribution which is commonly based on blockchain by maintaining the ledger about the exchange of currency. Cryptocurrencies are mined rather than printed as the traditional currencies. Bitcoin is released in 2009 as the first decentralized cryptocurrency paving a way for many more cryptocurrencies to get into circulation.
What is blockchain and how does it work?
As the name indicates a blockchain consists of the data or records which are stored in the form of blocks, these blocks include the hash called the cryptographic hash from the block that is from the previous block, timestamp and the data of transactions. These blocks are linked using cryptography resulting in a chain of blocks. These chains can be expanded according to the requirement with the addition of new record blocks.
A cryptographic hash is a function of a mathematical algorithm, this is used to convert the input given by the user to transform into bit size and store the data. Once the hash is created it is impossible to get the input from the generated hash in reverse computation, the only way to get the input from the generated hash is by using brute force and checking for a match. Even with a slight modification in the word the whole hash value makes it hard to predict. The main objective of the timestamp is to validate the transaction data’s presence during the publication of the block into their respective hash.
Some of the popular cryptocurrencies
Bitcoin (BTC): The first-ever cryptocurrency that came into existence, which started the whole cryptocurrency frenzy.
Ethereum (ETH): The first alternative cryptocurrency of bitcoin was founded in the year 2013. The main feature of this cryptocurrency is that it has smart contract functionality.
Litecoin (LTC): One of the first launched cryptocurrencies which are often referred to as the “Silver to Bitcoin’s Gold”. This crypto is based on the global payment network.
These are the most popular cryptocurrencies that are out there in the market. In recent years many altcoins are being introduced into the market with the integration of various techniques. This is due to the open-source code of Bitcoin which with slight modifications anyone can create their cryptocurrency.
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