A brief overview of Cryptocurrency and its working

A brief overview of Cryptocurrency and its working
June 05 07:20 2018 Print This Article

The world is now getting acquainted with cryptocurrency with its rising popularity and consumers. Since its inception in the year 2009, it has come a long way and what started with a single currency has now been added with 800 of them. With the increasing currency, the consumer rate has increased drastically, but many of us are still unaware of how exactly the world of cryptocurrency works. Those who started investing into Bitcoin must have earned in millions by now, but now with the introduction of many more in the list, this has become quite complex and need a better understanding.

A little understanding of Cryptocurrency

In the year 20009, cryptocurrency made its first appearance in the world and was introduced as the alternative of paper money which was the only conventional way of doing the transaction. Not only had this but the introduction of cryptocurrency also provided people an alternative of stock trading.

The motive behind cryptocurrency or better calls it digital coins was to break the stereotypical way of doing a transaction with cash and introducing a currency which was beyond the central bank and borders of currency. The participants of cryptocurrency can do the transaction and release new currency in the agreement of security and accuracy. The entire process and concept of cryptocurrency rely on the blockchain.

Concept of blockchain

By this time, each cryptocurrency that exists relies on the concept of Blockchain. The sole motive of introducing cryptocurrency was to design a currency that is secure and decentralized. This refers that every single transaction is done is encrypted and that transaction is added to “block.” The block remains there unless a certain number of transactions are recorded. The moment, the desired number of transactions is recorded; it becomes a blockchain which then made publically available. The recording of this transaction and then further releasing of the new currency is called mining. Mining has now new concept, one can start mining via their smartphones and earn extra ETN on the GO!

What is mining?

Since there is no trace left behind after doing a transaction, it becomes complex like a math puzzle that can only be solved by powerful computer hardware. The entire process of solving the maths puzzle and making them public via adding them to blockchain is rough can be referred to as Mining. But, miners need to verify themselves before starting the mining to avoid further complications. One can now use Electronic mobile miner for mining.

Earlier one CPU was enough to start the mining, today there are plenty of ways that have made their way for mining. So, if you are new to cryptocurrency trading or investment, this is going to help you a lot for the basic understanding.

 

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Demarco Gonzalez
Demarco Gonzalez

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