A cryptocurrency is a digital asset nor like physical currency, it’s a complete form of virtual that’s why sometimes cryptocurrencies called virtual currency also.
The main difference between cryptocurrency and normal currency is it’s completely decentralized blockchain-based.
With the algorithm of cryptography, the cryptocurrencies are created with the help of blockchain technology.
Decentralized means no one controls the network. It’s like a set of people who are in the network are capable of approving the transactions whenever it’s happening.
Normally its peer to peer or node to node transactions verified by any set of nodes and peers in the network.
It needs a public and private key to make any transactions. If a person want to make a transaction they have to send the public to the sender. The public key is like an account number of banks and the private key is like a pin number or password for the bank account.
All cryptocurrency transactions are stored in a ledger so anyone can see any transactions in the ledger this is the beauty of blockchain technology and its called hyperledger.
So here no central authority to ensure transactions always any node will be active the transaction will be done with the help of that active node.
So talk about cryptocurrency further bitcoin is a first-ever cryptocurrency invented by an anonymous person called Satoshi Nakamoto.
Bitcoin was launched in the year 2009 at that time bitcoin price was around cents in USD. First people don’t believe in and thought bitcoin as a scam.But by 2012 bitcoin belief got stronger all over the world and the price boomed to almost 300USD.
Later it reached almost 19000$ per bitcoin. And day after day lot of new cryptocurrencies were introduced by many organizations since they believe cryptocurrency is future.
Below are some of the top alternative cryptocurrencies for bitcoin and that’s why its also called altcoins in cryptocurrency slang.
- Bitcoin cash
- Ethereum classic
and more than 3000 + cryptocurrencies live market now. Every cryptocurrency has its own advantages and disadvantages.
Cryptocurrencies like bitcoin are unable. Mining is nothing but verifying transactions. For eg: if anyone wants to send bitcoins to another person they will send by their public address and it been verified in the bitcoin blockchain and whoever verified that transactions is called miners and they will get a reward for every transaction and that is called the block reward.
This applies the same for all other cryptocurrency mining also.
So now you may have got overall ideas of what is a cryptocurrency and its functions and everything. Give your queries or feedback as a comment below. I will look after that and will give my best answers. Thank you