cryptocurrency
What is cryptocurrency-Cryptocurrency?
Cryptocurrency is a digital asset product formed as a transaction medium in an
encrypted secure peer-to-peer economic system. Use encryption technology to
verify and protect transactions and control the creation of other units.
Different from the centralized banking system
we know, most of the cryptocurrency is carried out in a decentralized form, and
distributed in a distributed manner. Computer system networks (also called
nodes) running around the world.
Anyone who owns the Internet or a weak radio
Signals can be easily traded with people all
over the world by clicking a button.
Compared with Kuaguo Bank transfer, the
transfer fee of cryptocurrency is lower, and the transaction is irreversible,
which is different from the refund transaction allowed by credit card
companies.
The issuance and management structure of
cryptocurrency units is determined based on programming machine algorithms and
encrypted evidence. These are regarded as a set of custom rules, also known as
agreements. Used to define how it works in the cryptocurrency world.
The decentralized mechanism means that
cryptocurrency cannot be controlled by a single individual, and transactions
between users cannot be conducted without relying on a third-party
intermediary. However, there are also some private companies and fund
management companies that develop decentralized cryptocurrency technologies
with varying degrees of attributes. According to the network structure and node
distribution, some cryptocurrencies are more centralized than others.
The core of cryptocurrency is built on a
technology called blockchain. It is composed of multiple encrypted and secure
blocks linked together.
Each block contains the details of all recent
transactions and a list of records before the block transaction.
The blockchain is responsible for keeping all
confirmed transactions and permanent records as a decentralized data ledger.
The ledger is distributed on all nodes in the network and has the ability to
prevent modification.
The first decentralized cryptocurrency-Bitcoin
was created in 2009 by anonymous developer Satoshi Nakamoto. Its main purpose
is to establish an independent and decentralized digital payment system using
computer authentication and encryption security.
Like most cryptocurrencies, the supply of
Bitcoin is also limited, which means that the system will no longer
automatically generate Bitcoin after reaching the maximum supply value demand.
Usually, when a new cryptocurrency is released, the established maximum supply
information is reported separately.
Outside of Bitcoin, there are now more than a
thousand different cryptocurrencies-also known as altcoins or tokens. The
attributes and uses are also different.
If you want to learn more about cryptocurrency
and the technology behind it, stay tuned with us