Blockchain-related topics are extremely famous and cryptocurrencies is one of those. In today’s article, we will look into explaining the plain language of blockchain and cryptocurrency.
It is rather challenging to explain the cutting edge technologies with simple words but getting a clearer picture of it will definitely help in the future. So, what is a cryptocurrency? From the word itself, it is a combination of cryptography and currency.
What is cryptography? Cryptography is the process of converting ordinary plain text into unintelligible text and vice-versa. Modern cryptography deals with confidentiality — information cannot be understood by anyone, integrity — information cannot be altered, and authentication — sender and receiver can confirm each other. All in all, cryptocurrency is a medium of exchange value(just like ordinary money) that exists in the digital world and relies on encryption, which makes transactions secure.
Cryptocurrency is an alternative form of payment to cash, credit cards, and checks. How it works is that the technology allows you to send it directly to others without going through a 3rd party like a bank. So cryptocurrencies works like virtual accounting systems. They keep a record of all transactions. The transactions are bundled into blocks, which are cryptographically signed. With this technology, there are plenty of cases for this. You are now able to send money back to your family without incurring hefty international fees if you’re working in a different country. Merchants no longer have to worry about payment fraud or invalid checks because people can only spend what they have.The most famous cryptocurrency is, of course, Bitcoin, which made everyone curious about crypto and has become the standard for cryptocurrencies.
Summing up, cryptocurrency is a new way of online paying that makes transactions secure. It also helps to get rid of intermediaries represented by banks, which significantly reduce the commission fee. The main feature of cryptocurrencies — security — is provided by Blockchain technology — a network of computers having an identical copy of the database and changing its records by a common agreement based on pure mathematics.
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Source: MeetnGreet Me