Technology Behind Cryptocurrency

By Aditi Verma|Updated : August 20th, 2021

Digital money or crypto is an advanced resource intended to function as a mode of trade wherein singular coin proprietorship records are put away in a record existing in a type of a mechanized information base utilizing solid cryptography to get exchange records, to control the making of extra coins, and to check the exchange of coin ownership. It commonly doesn't exist in actual structure (like paper cash) and is ordinarily not given by a focal position. Cryptographic forms of money normally utilize decentralized control rather than concentrated computerized cash and focal banking systems. When a digital currency is printed or made preceding issuance or gave by a solitary guarantor, it is by and large viewed as brought together. When executed with decentralized control, every digital currency works through circulated record innovation, ordinarily, a blockchain, that fills in as a public monetary exchange data set.

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Bitcoin, Cryptocurrency, Blockchain...

Let's start with some quick definitions. Blockchain is the technology that enables the existence of cryptocurrency (among other things). Bitcoin is the name of the best-known cryptocurrency, the one for which blockchain technology was invented. A cryptocurrency is a medium of exchange, such as the US dollar, but is digital and uses encryption techniques to control the creation of monetary units and to verify the transfer of funds.

What is Blockchain Technology?

A blockchain is a decentralized ledger of all transactions across a peer-to-peer network. Using this technology, participants can confirm transactions without a need for a central clearing authority. Potential applications can include fund transfers, settling trades, voting, and many other issues.

A database structures its data into tables whereas a blockchain, like its name implies, structures its data into chunks (blocks) that are chained together. This makes it so that all blockchains are databases but not all databases are blockchains. This system also inherently makes an irreversible timeline of data when implemented in a decentralized nature. When a block is filled it is set in stone and becomes a part of this timeline. Each block in the chain is given an exact timestamp when it is added to the chain.

All Cryptocurrencies

As of today, there are above 10,000 different cryptocurrencies present in the world with a market cap of $2,384,681,829,480

As you can see bitcoin is dominating the market right now but there are still many fundamentally strong cryptocurrencies that can grow beautifully with time. Ethereum is one of the candidates and currently, Dogecoin has been pretty popular too.

So, overall we can say that cryptocurrency can be a possible future, and hence, the technology behind it which is the blockchain is promising too.

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