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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