Visit often to learn all you can about Blockchain Innovation and the future of cryptocurrency. There is a new form of money that has arrived. It is called cryptocurrency. I will explain the words involved and what it will mean for you.
Cryptocurrency is:
Is a digital currency (unlike actual money like we know it) is a computer currency. This means it’s tracked in the computer world, where it is verified (Blockchain Innovation, making sure it is actually what it’s supposed to be, is what it actually is), and the records are kept in a decentralized (viewed by more than one person) system using CRYPTOCURRENCY. “A cryptocurrency, crypto-currency, or crypto is a digital currency designed to work as a medium of exchange through a computer network that is not reliant on any central authority.” As it is digital, or virtual money, which makes it nearly impossible to counterfeit, and maintained over a large network of computers. This protects the Cryptocurrency from being stolen and out of the control of a single source.
Bitcoin is:
Bitcoin is a digital currency listed as value in an electronic form. Computers can read and record it. This was created in 2009 that uses a peer-to-peer, or same-to-same technology to create instant payments. It is a payment that uses virtual money instead of the actual money we use. There is a “Blockchain Innovation”, which secures the actual transaction information secure from groups who wish to try and control it.
Cryptocurrency Wallet is:
Wallet is a separate app that lets you store your private “Keys” to receive, send and spend your digital money. A key is the same as a password in Blockchain Innovation. It is a line of letters and numbers that let you access and manage your crypto funds.
Another way to look at this is if you use a diary in which you keep special information for you to remember when needed. Sometimes you let someone else know your password for a reason. But to keep your diary private after that use, you will change your “password”.
How Blockchain works:
- A blockchain works in the same way. Any time a new transaction happens, it gets recorded. This transaction is marked in a special code to keep it safe. Because all this cryptocurrency is stored on many different computers, this way if someone tried to change the information without the correct code, all the other computers will still have the original information. This way it won’t change what is really there.
- Now the big question: How do I get my money so I can use it? An exchange platform, (a place that has permission to do the buying and selling for a fee) is the most common method to do this. A platform has a set of directions set up. This is to provide a safe manner to convert cryptocurrency into the type of currency needed for the transaction.
- The end user (person to receive payment) creates an account on an exchange to create a sell order. This is done on that same exchange (same idea as the stock exchange). This is where the coin is bought by one party for a fee to put the cash into a bank so it can be withdrawn as needed.
- This money is called Fiat currencies, such as US dollars, euros, etc. These are used as acceptable money for a transaction. Governments have the authority to set the value of this money. This is how governments are able to control the value of money. And control the supply and secure the value of the fiat currency.
Response Magic