What is Cryptocurrency ? and blockchain Technology

Cryptocurrency

Cryptocurrency is a digital currency or a type of payment that can be transacted online for goods and services. Each company has its own unique currencies, which are also called tokens, and these can be traded specifically for the goods or services that the company provides. For accessing goods and services using cryptocurrency, we need to exchange real currencies. Cryptocurrencies functions using a technology called a blockchain. It is a decentralized technology spread across many computers that record and deal with all the transactions.

The most frequently asked question about cryptocurrency is its legal part. The answer may be based on the home country the investors are dealing with. In the U.S, there is no such question, but China banned cryptocurrencies. The users must be aware of how to protect and this system from scams.

Cryptocurrencies assure secure payment online which are denominated as virtual tokens and entered into the ledger of the internal system. The first cryptocurrency is ‘Bitcoin’, invented using blockchain technology, which is still major and most valued crypto in the market. Today, there are numerous digital currencies available in the market with different functions and specialties. Some of these replicate the fork of bitcoin when some are made from scratch.

The cryptocurrencies promise their users the flexibility of transferring funds directly between two individuals without third-party intervention. The Fund transfer has a minimal fee unlike the heavy charges levied by banks and other finance companies. For securing the transactions, the technology uses public key and private keys which are cryptographic code and a secret number respectively.

There are no focal authorities, government, or banks that have access to the funds or your personal data. Hence the digital currencies are virtual, there may be a chance of wiping out the balance due to damage to the hard drive if there are no back-up of the transaction exists.

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