What is Cryptocurrency easy explanation?

Laurie Sheikh asked, updated on December 6th, 2020; Topic: what is cryptocurrency
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What Is a Cryptocurrency? A cryptocurrency is a digital or virtual currency that is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend. Many cryptocurrencies are decentralized networks based on blockchain technology—a distributed ledger enforced by a disparate network of computers.

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Thus, what is Cryptocurrency layman's terms?

In simple terms, cryptocurrency is a type of digital or virtual money. It serves as ordinary money, such as dollars, pounds, euros, yen, etc. But it has no physical counterparts — banknotes or coins that can be carried around, that is, the cryptocurrency exists only in electronic form.

Over and above that, what is the main purpose of Cryptocurrency? A cryptocurrency is a medium of exchange like normal currencies such as USD, but designed for the purpose of exchanging digital information. Cryptocurrency is defined by Investopedia.com as a decentralized “digital or virtual currency that uses cryptography for security” making it difficult to counterfeit.

Either way, how a Cryptocurrency is created?

Cryptocurrency is created by code. In many cases, new coins are created when transactions are confirmed by a process known as mining. ... For example, a cryptocurrency may create some tokens upon launch as developer rewards or a cryptocurrency may pay out tokens as dividends on a monthly basis.

How safe is Cryptocurrency?

How Secure Is Cryptocurrency? Cryptocurrencies are usually built using blockchain technology. ... It's a fairly complex, technical process, but the result is a digital ledger of cryptocurrency transactions that's hard for hackers to tamper with. In addition, transactions require a two-factor authentication process.

2 Related Questions Answered

Who made Cryptocurrency?

Satoshi Nakamoto, the unknown inventor of Bitcoin, the first and still most important cryptocurrency, never intended to invent a currency. In his announcement of Bitcoin in late 2008, Satoshi said he developed “A Peer-to-Peer Electronic Cash System.

What was the first Cryptocurrency?

bitcoin