Cryptocurrency Money in the Internet Age

Cryptocurrency Money in the Internet Age

We denote cryptocurrency both a cryptographic currency and payment system of peer to peer. These digital currencies are therefore virtual currencies in the sense that the latter is characterized by an absence of physical support: neither coins nor banknotes and payments by check or bank card are not possible either.

These are alternative currencies that are not legal tender in any country on the globe. Their value is not indexed to the price of gold or to that of conventional currencies, nor are they regulated by a central body or financial institutions. There are no central banks at their head. And yet, security and transparency are their main assets! Because in fact cryptography secures transactions that are all verified and recorded in a public domain, ensuring both confidentiality and authenticity, thanks to Blockchain technology.

Blockchain: Basic Technology of Cryptocurrency

The cryptocurrency is all based on the same principle: Blockchain. The cryptocurrency is a series of numbers stored on a computer in the form of blockchains. The principle is actually quite simple and particularly well-explained for cryptocurrencies which are the new digital coins. First, you have to take a database. Authorize anyone to make changes to this database, on the sole condition of declaring themselves a “member”. Set up a very long and very complex control procedure which must be carried out each time a certain number (“block”) of changes is requested. This procedure is carried out not by a single controller, but by all the voluntary “members”. Once validated, the “block” of changes is dated and added to the others in the register. Finally, allow everyone to read the registry, and you have a blockchain database. ” Thus, it is up to the network (all peers) to validate and confirm each transaction. The cryptocurrency trading platform is one of the best sites for all purchase and investment of bitcoin.

This technology and this system are the basis of the vast majority of cryptocurrencies, but Blockchain applications do not stop there. Indeed, it could make it possible to disrupt the entire financial sector but also certain sectors such as the legal or administrative sector by making it possible to do without trusted third parties. No more need for a notarial act or civil registry or cadastre with this distributed registry technology that can contribute to make data more secure and transparent. Blockchain technology is, after all, a technology whose database cannot be modified without fulfilling certain conditions.

How Is Cryptocurrency Made?

The people who make cryptocurrency are called miners. It is also said that they mine a cryptocurrency. Without them, the Blockchain would be frozen. A minor indeed confirms the transactions that take place on the Blockchain.

The transaction will be immediately broadcast on the network, in peer-to-peer, consisting of computers called nodes. However, it is only after a certain period of time that the transaction will be confirmed by the computers belonging to the networks using the algorithms specific to said Blockchain. Once validated, the transaction now forms a new data block for the register. It is added to the others in the existing Blockchain, permanently and unchanging.

Behind these computers on the network, it is minors who validate transactions. This is called proof of work. In exchange for their services (and the computing power mobilized for this purpose), they obtain a reward that takes the form of tokens or tokens.

How to Mine a Cryptocurrency?

To undermine a cryptocurrency, it is most often sufficient to install on your computer software using the processor or the graphics card, or both, in order to be able to solve the cryptographic problem requiring relatively large computing power, which will allow you to touch new units of the cryptocurrencies in question.

Be careful however, the main cryptocurrencies have become too difficult to mine for individuals. The mining of many of them has become highly professional and takes place in part on Chinese farms, buildings of several thousand m2 where tens of thousands of servers are running day and night to mine cryptocurrencies (Bitcoin, Litecoin, etc).

Faced with this competition, cloud mining solutions have been developed. No investment in specific equipment is required. You just have to get in touch with a company that has invested in the necessary equipment and “rent” your computing power.


Click Here To See More