Nites on Cryptocurrency by Garhwal Sir

Cryptocurrency

 In simplistic terms, Cryptocurrency is a digitised asset spread through multiple

computers in a shared network. The decentralised nature of this network shields them

from any control from government regulatory bodies.

 The term “cryptocurrency in itself is derived from the encryption techniques used to

secure the network.

 As per computer experts, any system that falls under the category of cryptocurrency

must meet the following requirements.

Blockchain Technology

 Blockchain is an innovative distributed ledger technology that was first introduced in the

design and development of cryptocurrency, Bitcoin in 2009 by Satoshi Nakamoto.

 This technology eliminates the requirement of a central entity / third party to validate

the transactions over the peer-to-peer network

 Blockchain uses a unique data structure where verification data related to the

transactional records is cryptographically secured against tampering and stored in

blocks.

Absence of any centralised authority and is maintained through distributed networks

 The system maintains records of cryptocurrency units and who owns them.

 The system decides whether new units can be created and in case it does, decided the

origin and the ownership terms.

 Ownership of cryptocurrency units can be proved exclusively cryptographically.

The system allows transactions to be performed in which ownership of the

cryptographic units is changed.

 The competing cryptocurrencies that were created as a result of Bitcoin’s success are

known as altcoins.

Some of the well known altcoins are as follows:

 Litecoin

 Peercoin

 Namecoin

 Ethereum

 Cardana

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