A cryptocurrency is a digital asset or money designed to serve as a medium of exchange that employs strong cryptography to control the creation of new units, secure financial transactions and validate the transfer of digital assets. It’s a decentralized, encrypted digital currency that’s transferred between its users and confirmed in a digital public ledger through a specific process called mining.
Bitcoin is one of the most important and popular cryptocurrencies in the world. Since it’s not operated by any central bank or government body, you can make and receive payments anonymously. Due to its anonymous nature, Bitcoin is widely being used to transfer/receive funds all over the world.
You can also use Bitcoin to buy services or products both online and offline, as the majority of major retailers and businesses have started accepting Bitcoin as a payment. You may be wondering how you can locate retailers accepting Bitcoin. Well, there’re a number of great apps available on the market, which you can use to locate retailers who accept Bitcoin as payment. To understand how Bitcoin and other cryptocurrencies work, you will need to learn a couple of basic concepts. Namely:
Digital Public Ledgers – All verified transactions from the inception of a cryptocurrency’s creation are kept and stored in a digital public ledger. All the information, including the identity of coin owners is encrypted, and the system employs powerful cryptographic methods to ensure the authenticity of record keeping. Bitcoin has a specific name for this public ledger, which is ‘’Transaction Block Chain.’’
Cryptocurrency Mining – Mining is a process of verifying digital transactions and recording them in a public ledger. To add and verify a transaction, the miner needs to solve an increasingly complex computational problem. In return miners get a fixed percentage of cryptocurrency they’re mining. Bitcoin mining is open source, meaning anyone can confirm the transaction and take participation in mining. However, you’ll need to invest in crypto mining hardware to get started.
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