A cryptocurrency sometimes also known as crypto-currency or crypto, is any form of currency that exists digitally or virtually and uses cryptography to secure transactions. Cryptocurrencies don’t have any type of central issuing or regulating authority, instead, a decentralized system is used to record transactions and issue new units.
Cryptocurrencies work on a distributed public ledger called blockchain, a record of all transactions updated and held by currency holders.
Units of cryptocurrency are created because of a process called mining, which means using computer power to solve complicated mathematical problems that generate coins. Users can also purchase the currencies from brokers, then store and spend those using cryptographic wallets.
If you have a cryptocurrency, you don’t own anything in tangible form. What you own is a key that allows you to move a record or a unit of measure from one person to another without any trusted third party.
Although Bitcoin is there around since 2009, cryptocurrencies and applications of blockchain technology are still emerging in financial terms, and more uses are expected in upcoming time. Transactions consist of bonds, stocks, and other financial assets that can eventually be traded with the help of this technology.
Cryptocurrency examples are as follows –
There are n numbers of cryptocurrencies. One of the best-known include:
Founded in 2009, Bitcoin was the first cryptocurrency and is still the most commonly traded. The currency was founded by Satoshi Nakamoto – widely believed to be a pseudonym for an individual or group of people whose precise identity is still unknown.