Cryptocurrency - meaning and definition
Cryptocurrency is any form of currency that exists digitally or by default and uses encryption to secure transactions. There is no central issuance or regulation authority for cryptocurrencies, instead using a decentralized system to record transactions and issue new units.
What does cryptocurrency mean?
Cryptocurrency is a digital payment system that does not rely on banks to verify transactions. It is a peer-to-peer system that allows anyone anywhere to send and receive payments. Instead of carrying and exchanging funds in the real world, cryptocurrency payments are in the form of digital entries to an electronic database describing specific transactions. When funds are transferred in cryptocurrency, transactions are recorded in a public account book. Cryptocurrency is stored in digital wallets.
The cryptocurrency got its name because it uses encryption to verify transactions. This means a sophisticated coding system that participates in the storage and transfer of cryptocurrency data between portfolios and public account books. The objective of encryption is to provide security and safety.
The first cryptocurrency was bitcoin, which was founded in 2009 and remains the most popular today. Much interest in cryptocurrencies involves trading for profit, with speculators sometimes pushing prices higher.
How does cryptocurrency work?
Cryptocurrencies run on a distributed public account book called the Serial Database, a record of all transactions updated and maintained by currency holders.
Cryptocurrency units are created through a process called mining, which involves the use of computer energy to solve complex mathematical issues that generate coins. Users can also buy currencies from brokers, then store and spend them using cryptocurrency wallets.
If you own cryptocurrency, you don't have anything tangible. What you own is a key that allows you to transfer a record or measurement unit from one person to another without a trusted third party.
Although bitcoin has existed since 2009, cryptocurrencies and serial database technology applications are still emerging financially, and are expected to see more uses in the future. Transactions including bonds can eventually be traded
