What is cryptocurrency ?

Cryptocurrency is a fully digital, encrypted, virtual currency that can be used in barter transactions. For some, it is the currency of the future. Cryptography is used to verify and securely perform swap transactions. It has no physical counterpart.

In fact, money spent and transferred by debit and credit cards is also a virtual currency, because only system information changes as a result of these operations. Cryptocurrency has the same principle of operation. However, it is based on a decentralized system that is not managed by any body or government, which makes the system more secure.

History of cryptocurrencies

Bitcoin, the first cryptocurrency, was developed in early 2009 by a person or people codenamed Satoshi Nakamoto. Although not developed by Satoshi Nakamato, it was shared by an unknown person (s) as an open source program. This network works on a platform with a concept similar to file-sharing platforms with end-to-end encryption.

Security of cryptocurrencies

In order to operate in a decentralized, ie distributed network, each part of the system must be approved. These operations are carried out through the blockchain, so each operation can be seen by anyone.

All transfer operations are carried out by specifying the sender's and recipient's wallet addresses and the amount to be sent. The exchange or shipment operation must be approved by the sender and then by the system. Once the transaction is confirmed, it cannot be returned.

How is cryptocurrency produced ? What is cryptocurrency mining ?

The production of cryptocurrencies is carried out through a distributed system like their own. Cryptocurrencies have a production limit, so the more cryptocurrencies are produced, the more difficult the operations that need to be solved to produce cryptocurrencies.

The production process is carried out by mining. This is done with operations based on solving mathematical problems. In other words, if you have processing power and an internet connection, you can mine.

What are the advantages of cryptocurrencies ?

1. It is not affected by the economic situation of the countries as it does not depend on any central bank;

2. It is not possible to freeze or confiscate the account.