What Are Cryptocurrencies?

What Are Cryptocurrencies?

In this article, we are going to simplify cryptocurrencies and what you need to know about the viable future of money.

Cryptocurrency

Cryptocurrencies can simply be remarked as a digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds operating independently of a central bank.

It is also a secure digital means of monetary transactions that makes exchanging secure and anonymous it is also fondly known as a general name for all digital currency like bitcoin,ethereum, e.t.c.

How Does It Work?

Just like bitcoin, cryptocurrencies are created on the cryptography framework which is the art of writing or solving codes, and it is also in conjunction with the internet.

Nobody created cryptocurrency because it isn’t a “singular coin” but a general sobriquet used to describe digital currencies on the cryptographic network.

However, the first Cryptocurrency “BITCOIN” was created by Satoshi Nakamoto in 2009, before the emergence of Ethereum by Vitalik Buterin and so many other Cryptocurrencies that we have today that are now known as Altcoins.

Altcoins which stands for Alternate digital currencies or Alternate Coins to Bitcoin are coins other than bitcoin, it is the generic name for other cryptocurrencies that isn’t Bitcoin.

How Crypto works

Cryptocurrencies are created on the cryptography code framework and are backed by the math code and not under the control of any banking institution or government.

The currencies are based on software and can not be touched or seen unlike fiat, they are completely digital coins and unidentified coin transactions and cannot be printed like paper money.