Skip to main content

What exactly is Cryptocurrency ?

A cryptocurrency is a digital or virtual currency that is meant to be a medium of exchange.

cryptocurrency

Some other features of cryptocurrency:

  • There's a limit to how many units can exist
  • Easily verify the transfer of funds
  • Operating independent of a bank
  • Allows new units to be added only after certain conditions are met

What makes Cryptocurrencies special ?

  • Little to no transaction costs
  • 24/7 access to money
  • No limits on purchase and withdrawals
  • Freedom for anyone to use
  • International transactions are faster

What's the Cryptography ?

Cryptography is a method of using encryption and decryption to secure communication in the presence of third parties with ill intent

Cryptography usually requires a computational algorithm (like SHA256), a public key (that the users shares with everyone) and a private key (which acts like a digital signature of the user)
Cryptography explain
A normal bitcoin transaction:

Transaction details ➡ SHA256 ➡ Passed through a signature algorithm with the user's private key ➡ Digitally signed output ➡ Distributing the output across the network with sender's public key ➡ verification and being added to block

A normal Bitcoin transaction first you have the transaction details, now this details who you want to send it to and how much bitcoins you want to send then it's passed through a hashing algorithm for Bitcoin we use SHA256 algorithm the output that you obtain is passed through a signature algorithm with the users private key, now this is used to uniquely identify the user this output is then distributed across the network for people to verify this is done by using the sender's public key the people who verify the transaction to check whether it's valid or not unknown as minus, now after this is done the transaction and several others are added to the blockchain where it cannot be changed again.

There are two major cryptocurrencies (among the many) in the market: Bitcoin and Ether

Bitcoin

Bitcoin is a form of digital currency and is decentralized without a central bank. It uses blockchain to perform transactions on a peer-to-peer network.

Ether

Ether is a currency that's accepted in the Ethereum network. Ethereum works on blockchain technology to create an open source platform to build and deploy decentralized applications.

Cryptocurrency: Bitcoin and Ether

The similarities between Bitcoin and Ether (unit of currency powered by Ethereum) are:

most valuable
They're the biggest and most valuable cryptocurrencies

Blockchain
Both of them use blockchain and mine currency using proof of work

widely used across the world
Widely used across the world

Labels:

Comments

  1. L Ganesh3 June 2022 at 17:58

    Nice and good article. It is very useful for me to learn and understand easily. Thanks for sharing
    Learn Devops Online
    Devops Online Training in Hyderabad

    ReplyDelete

Post a Comment

Popular posts from this blog

Let us understand DevOps

What Will You Learn ? DevOps is a set of practices that combines software development (Dev) and IT operations (Ops) This article will get you started with the fundamentals of DevOps and understanding how to use it in real projects Understanding what DevOps is and why it's needed along with the basic terminologies Getting started with DevOps and understanding its architecture and lifecycle Introduction to Git and it's basic commands Introduction to Docker, Docker container and it's related concepts Getting started with Jenkins and understanding how to integrate it with Github Basics of Selenium and Nagios Who is the target audience ? Students and industry professionals who wish to get hands-on something called DevOps Users who wish to learn how to integrate the processes between software development IT teams and manage various projects Benefits Improved operational support and faster fixes Good processes across IT and teams, including automation Increased team flexibility an...
8 comments
Read more

What is Hard Disk? Definition, functions and types.

In this article, you will know what is Hard Disk and what are these types? Hard disks are also often called Disk drive or "Hard Disk Drive (HDD)". Just as a library is required to handle books in the library, the same computer also needs a similar place in which it can store digital data .  Computers use two types of storage devices to store and process digital content (Document, Image, Videos, Software, Operating system, Program). In which Hard Disk is a secondary memory device. It keeps the data stored permanently. Whereas the primary memory device (RAM) serves to process the program of the computer . It is also called temporary memory. Hard Disk is seen as an important component of a computer because no computer will work without it. In this post we will tell you what is a hard disk in a computer ? In which you will get to know a lot about Hard Disk. So let's first know, what is called a hard disk and then we will talk about other aspects of it. What is hard disk ...
4 comments
Read more

What is an NFT? (Non Fungible Token) NFT's explained

Guys, You must have heard the words NFT or Blockchain recently. That is, Jack Dorsey is selling his first tweet, a lot of people are selling digital art paintings. These are being sold through NFTs. Here, I'm talking about the NFT, not NEFT that is used in banking transactions. Because NFT has emerged as an important word in the realm of technology.  It is quite unique but still not many people know about this. So, let's dive deep into the NFT or the Non Fungible Tokens. And if you enjoy reading this article then do share it with others. You might feel odd to talk about NFT, but if you look at Blockchain implementation of which was Cryptocurrency or Bitcoin, just like that NFT is it's second implementation. And the profit of this implementation is you can sell unique, expensive, valuable, rare and one of a kind things.  What's the meaning of one of a kind? Its pretty simple, there's only one piece of a certain thing existing in the world. It means, the value of a ...
Post a Comment
Read more