We have heard a lot about cryptocurrency lately, we hear a lot of words like Bitcoin, Blockchain, Dogecoin, Etherium, NFT, etc. but do you know what it all means and how it works?
What In the World Might Cryptocurrency Be?
There is nothing like money for the development of human civilization. In those days you exchanged goods, but if you were not satisfied with this type of exchange, money was used. In the early days, coins were made from precious metals, including gold and silver, and used to buy things they needed.
The government started controlling money because it believed that there would always be a system, paper money was also used in place of metal coins, although paper money was not as valuable as metal coins, it was recognized in the system put in place by the government called paper money made more valuable than metal coins.
This means that the paper money is evidence that the government recognized your assets, but over time developed society has made its own benevolent political rules. Money to buy goods.
Our money is only limited to digits. When you buy something similar, the digits on your bank account are reduced and the digits are paid out to the person you bought good from.
So human civilization has gone through several phases and has come to use cryptocurrencies in search of its own convenience. In today’s cryptocurrency world, people are starting to consider cryptocurrency to be the most convenient medium. Cryptocurrency is a medium of exchange that is virtual The Bitcoin logo is like a coin.
However, cryptocurrencies do not contain coins or paper money, they exchange your digital assets, but their basic concept is the same as sending and receiving money from one bank account to another decrease, so does the cryptocurrency.
The only difference is that in banking transactions, different banks have their own separate accounting records, while in cryptocurrencies, each transaction has the same large record called the ledger.
Why Do We Even Need To Use Cryptocurrencies?
Recently, people all over the world have been tracking cryptocurrency. In fact, virtual trading has its advantages over other trading systems. The first benefit is that the cryptocurrency has decentralized the trading system. The record of every cryptocurrency transaction is kept in the same large ledger, which also contains many copies.
The ladger is available to everyone connected to the cryptocurrency network. In addition, a person’s business records go into all ledgers, which is easy to find out that someone has misused them.
You’ve probably heard of cryptocurrency or bitcoin mining. Bitcoin can only be mined after solving a complex problem with a powerful computer that can be captured and placed in a Bitcoin wallet, a process also known as mining.
There are millions of people involved in Bitcoin mining around the world right now, and if you use your computer skills in Bitcoin mining, you can earn extra bitcoins. However, Bitcoin is one of the types of cryptocurrency.
Because of the decentralization system in cryptocurrencies, it cannot be easily hacked. For example, if you use different numbers to hack the ledger on one of the computers on the cryptocurrency network, you will be in trouble as soon as it differs from the numbers on the other computers.
So when cryptocurrency is highly organized, people’s attraction for security has increased and it seems that people are drawn to it as it promotes transparent business.
The second reason is that people no longer need cumbersome banking operations because everything in cryptocurrencies is under the control of everyone on their network. If you need to do international business, you can do it in a short amount of time without paying a bill. Interest rate, interest, and other transaction fees
The most interesting thing is that the cryptocurrency is called a cryptocurrency because it is protected by cryptography, for example, Bitcoin, like other cryptocurrencies, uses blockchain.
Blockchain is a secure layer that manages the records in the laser as blocks, i.e. if you have made a transaction using Bitcoin, this transaction is recorded as a block in the ledger. The block records who has given whom how much Bitcoin.
What Types Does Cryptocurrency Have?
There are currently around 4,000 types of cryptocurrencies worldwide, each with its own unique characteristics. Among the second largest cryptocurrencies in the world, Ethereum trades faster than Bitcoin.
Similarly, a cryptocurrency called Cardano is considered technically superior to other cryptocurrencies, while the cryptocurrency Lightcoin has used a new algorithm. All cryptocurrencies have their own unique properties.
Despite the popularity of cryptocurrency in the market and its strong security, many people still do not believe in it. Many hesitate to invest in cryptocurrency