What is Cryptocurrency?

A cryptocurrency is a digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets. Cryptocurrencies are a kind of alternative currency, which have limits or restrictions pertaining to their creation.

How Are Cryptocurrencies Created?

Cryptocurrencies are a sequence of encrypted bits transmitted and stored over a network. These digital currencies are developed using different cryptographic functions and have different values based on their creation date, the number of users, the extent of the network and transaction volumes.

What Is BlockChain?

Blockchain is a system of recording information in a way that makes it difficult or impossible to change, hack, or cheat the system. A blockchain is essentially a digital ledger of transactions that is duplicated and distributed across the entire network of computer systems on the blockchain.

Blockchain does not store any of its information in a central location. Instead, the blockchain is copied and spread across a network of computers. Whenever a new block is added to the blockchain, every computer on the network updates its blockchain to reflect the change.

How does a blockchain work - Simply Explained


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