Cryptocurrencies! We all have heard of them. The high-praise and unstoppable controversies that surround them. The irreplaceable benefits and the evolution they have delivered to several industries.
But how much do
we know about what they really are and how they function?
What is Cryptocurrency?
Cryptocurrency is
a peer-to-peer digital replacement for fiat money like dollars, rupees, and
pounds. Cryptos are powered by blockchain technology that facilitates a
decentralized approach to its management. Each cryptocurrency possesses a value
with regard to real money. But it often fluctuates based on demand, supply, and
trading.
How do they work?
Cryptocurrencies
are governed by blockchain technology. The transactions made by
cryptocurrencies are tracked through an immutable and publicly distributed
ledger. Once a set of entries are made, they are secured by cryptography. Hash
algorithms are set in motion to group those entries. A set of entries are given
a header and labeled as a Block. Multiple blocks are connected in a chain. Thus
coining the technology, “Blockchain”. Transactions are secured through crypto
payment gateways. They are direct channels that facilitate the exchange of
cryptos between a buyer and a seller.
Thus we learned
the outline of what cryptocurrencies development
and how they function.
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