An overview of Cryptocurrency

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Everyone has definitely came across the word  bitcoin or cryptocurrency  once in a life time  for sure. We are  publishing article series where one can learn all about cryptocurrencies. So, let us understand it’s basics.

What is a Cryptocurrency and Why is it a buzz around the town?

Cryptocurrency is initially created for Peer-to-Peer Electronic Cash System. It is a digital currency backed up by Blockchain technology. Hence, the first cryptocurrency that came into existence was Bitcoin.

Individuals psychology behind Cryptocurrency:

There are 3 types of individuals involved in Cryptocurrency.  The first type think it’s the future. ‘Bitcoin will replace the US dollar’, says former Twitter CEO Jack Dorsey.

The second type, thinks It’s “Quick to get Rich Scheme” where early investors made billions. The third types are the developers who work on this technology. They use cryptos for illegal things like money laundering.

Some of the basic questions that comes in everyone’s mind are:

  • How it came into existence?
  • What is Blockchain technology?
  • How Cryptocurrency works?

 How it came into existence?

There is no fixed answer to this as we don’t know who created the first cryptocurrency Bitcoin. A popular theory came into existence after 2008 crash. Satoshi Nakamoto (founder of Bitcoin) vision was  to create a cash system that was not dependent on any Financial Institutions or any Central authority. In 2008, the whole world’s economy faced major economic crisis that greatly impacted the financial systems. Hence, to tackle the situation Satoshi Nakamoto created Bitcoin using blockchain technology.

What is Blockchain Technology

Blockchain means blocks connected to each other. Hence its called a chain.  In a block system transaction related to cryptocurrency is saved.  In technical terms, blockchain is a distributed database. The computer network is shared among the nodes. Blockchain transaction database or public ledger is available publicly to every individual. Any individual can visit the site Blockchain.com to see bitcoin transaction. Therefore, in the upcoming blockchain article we will gain knowledge of how the blockchain technology works?.

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How does cryptocurrency work?

Everyone understands how the internet works. Through wire or wireless medium internet connected to each other. Cryptocurrency works same as internet does.  Hence, different nodes connects to each other. It majorly forms a part of network.

Let us understand it in detail. Cryptocurrencies is P2P networks that mean peer to peer networks. So,in layman language let us understand What is a peer? Hence, to understand peer one should understand the basic concept of nodes.

Since, nodes are nothing but software that runs on a computer. The  software connects with other nodes using the internet. Peers regarded as connected nodes. Hence, there are thousands or millions of nodes that are working to run these cryptocurrencies.

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Though, it is a very basic knowledge of cryptocurrency and blockchain. In different parts detailed understanding of the topic explained.  Therefore, follownig are the different aspects  like fundamental smart contracts, technical understanding of bitcoin miners, detailed knowledge of nodes. Multiple coins like Ethereum, Shiba Inu coin, dogecoin included. Hence, the  subject is so extensive. It’s impossible to fit in one article. So, we will cover every aspect in detail in this article series.