Crypto

What is crypto?

In general, crypto is a virtual currency whose security is guaranteed by cryptography. Cryptography makes it impossible for cryptocurrencies to be counterfeited or double-spent. So, even though it is used virtually, there is no chance of counterfeiting to the detriment of the owner.

Why have cryptocurrencies become popular in recent times? The reason is because these digital assets are not bound by a central authority, such as a bank. By using the decentralized network of Blockchain technology, the distribution system can be through various computers.

The decentralized system is beyond the control of the government and centralized authorities. No one controls your virtual assets when you own cryptocurrency.

What's more, various countries have started to allow the use of cryptocurrencies. You can also spend it on cross-border transactions.

How does cryptocurrency work?

Cryptocurrency is powered by a technology called blockchain. This technology ensures the security of online transactions even without third-party intervention. Cryptocurrencies are protected by various algorithms and encryption and cryptography that refer to blockchain technology.

So, do you know what blockchain technology is? It is at the core of the functionality of cryptocurrencies. We need to learn about it to understand how cryptocurrencies work.

What is Blockchain?

First of all, we can try to understand what it is through its name. Basically, a blockchain is a set of blocks that are connected in an online ledger. Each block contains a set of transactions that have been independently verified by each network.

When there is a transaction, let's say between A and B. A wants to send crypto to B. This transaction is represented online as a set of blocks. Then, the blocks are distributed to each decentralized network. If there is approval from the network system, the transaction is valid.