Unless you’ve been living under a rock for the past few years, at least you’ve heard of cryptocurrency. This new form of currency has become increasingly popular, but for most, a lot about it is still a myth. Bitcoin and other cryptocurrencies are regularly smeared across news titles, mapping a wild ride of extreme highs and lows.
The way people work, connect, shop and even pay for products has been changed by technology. Consumers can pay for goods at digital registers with the quick wave of a smartphone. A modern payment method has now emerged: the blockchain or the cryptocurrency.
What is Cryptocurrency?
Cryptocurrency is a digital currency that uses a highly advanced encryption algorithm called ‘cryptography’ to protect and validate transactions and monitor the development of new currency units. This currency is a sort of digital asset.
Since it uses encryption to validate transactions, the crypto received its name. Cryptocurrencies are commonly designed using blockchain technology.
What is Bitcoin?
Although there have been numerous attempts since the tech bubble of the 1990’s to build cryptocurrencies, Bitcoin is the first to achieve widespread public notoriety. The purchase and issuance of Bitcoin is collectively controlled by the network using open source peer-to-peer technology, essentially cutting out the mediator.
Since it became available to the general public in 2009, Bitcoin has strongly controlled the crypto market. Cryptocurrencies like Bitcoin and Ethereum are more dynamic than standard fiat currencies.
Difference between cryptocurrency and bitcoin
The discrepancy between cryptocurrency and Bitcoin is one factor that confuses many individuals who read regarding cryptocurrency. The umbrella term for this modern type of digital currency is Cryptocurrency. In cryptocurrencies, Bitcoin is the most valuable and well-known brand name, but it is just one of several.
How transaction is performed?
A cryptocurrency such as Bitcoin comprises of a peer network. Each peer has a history of all transactions as well as of every account’s balance.
A transaction is a file that says, “Bob provides Alice with X Bitcoin” and is signed by the private key of Bob. It is simple cryptography of a public key, nothing special at all. A transaction will be shown on the network after it has been signed.
Is Cryptocurrency safe?
It depends on what secure means to you. It is very stable as far as encryption goes. This currency is secured and the technology of the blockchain makes it so that it can not be falsified or double-spent.