Saturday, November 27, 2021
HomeFinanceUnderstand what cryptocurrency is in one minute

Understand what cryptocurrency is in one minute

Cryptocurrency is a transaction medium that uses cryptography principles to ensure transaction security and control the creation of transaction units. It is a digital currency (or virtual currency). The most specific cryptocurrency is Bitcoin (the first decentralized cryptocurrency), which was born in 2009.

By definition, cryptocurrency is a virtual currency, but it is different from general virtual currency. Virtual currency refers to any currency not printed on paper or metal and only exists in the virtual world. It can only circulate in one direction. That is, it cannot be liquidated, nor can it be transferred. Common virtual currencies include Q coins and online game coins.

The cryptocurrency is fundamentally different from these virtual currencies. For example, a centralized organization cannot control it, cryptocurrency can purchase certain goods and services, and exchange them with legal currencies in both directions. Therefore, some people believe that virtual currencies only refer to Q coins and do not include Bitcoin.

The main characteristics of cryptocurrency:

Feature 1: Distributed storage, decentralization

It is straightforward to understand decentralization. That is to say, all the data information of currency is not recorded in one or a few computers but distributed in all computing networks. However, if you want to modify the data information, you must at least get the records of 51% of the computers in the corresponding computing network.

The way of information storage is no longer single or multiple servers but a network. Information tampering is difficult.

Feature 2: Transparent encryption, deregulation

Regulators can see and estimate the approximate current market stock, but they cannot see the flow of funds settlement.

Therefore, BTC payment is a prevalent method on the black market. The payment and settlement between hackers are safe and concealed, and money flow is entirely unregulated.

Feature 3: Open and shared, open-source technology

Many technologies related to blockchain are open source. After making a branch, a lot of various coins appeared. At Xunlei, everyone issues a virtual currency at every turn, and the stock price can double in a few days. It also shows that this technology is open and easy to operate.

At present, there are significant differences in the positioning of digital currency in the industry. The more recognized definition is: digital currency is a currency presented in digital form, rather than physical currency such as banknotes and coins, and is a currency that exists in the digital world. , Which assumes the functions of a similar entity currency, and can also support instant transactions, is essentially just an informatization process of the existing legal currency. Digital currencies include encrypted currencies and central bank digital currencies.

As the name suggests, Central Bank Digital Currency , the digital currency issued by the Central Bank of the People's Republic of China, is simply the electronic version of the renminbi. Compared with cryptocurrency, the most significant advantage (difference) of central bank digital currency is government endorsement. The cryptocurrency is created based on a particular encryption algorithm and is not issued by any centralized organization. In theory, there is no regulatory agency to supervise, and the risk is relatively greater.

Syandita Malakar
Hi guys this is Syandita. I started Business Module Hub to help you all to post updated articles on technologies, gadgets. Although I love to write about travel, food, fashion and so on. I quite love reading the articles of Business Module Hub it always update me about the new technologies and the inventions. Hope you will find Business Module Hub interesting in various way and help you accordingly. Keep blogging and stay connected....!
- Advertisment -

Covid Cases

All countries
Total confirmed cases
Updated on November 27, 2021 1:47 am

Most Popular

All Categories

Business Module Hub