What is cryptocurrency Cryptocurrency
Many are asking about what is cryptocurrency and how does this currency work And how can we use this cryptocurrency And many questions that are hidden to many people around the world, for this we will learn about all the details of cryptocurrency or Cryptocurrency.
Cryptocurrency is one of the forms of digital money that is designed to be secure, but at the same time we do not know who will send the money and who is the recipient, because it is a currency linked to the encrypted internet, and the process of converting readable information into an impenetrable code, and it cannot track the process of transfers and also the purchase process.
Who would like to know that cryptography appeared in the Second World War and has evolved in the digital age with elements of mathematical theory and computer science to become a way to secure communications, information and money online.
What is a digital cryptocurrency
Before we start explaining cryptocurrency, we must first get to know what a currency is. Currency is money, and this currency varies from one country to another, and this currency helps facilitate trade in cash, unlike the old exchange, which is by exchanging goods directly.
When we say "currency" in the sense of dealing, we mean the form of money in which the trade is handled, and this currency can be dealt with other currencies in the foreign exchange market or the forex market in order for the work to have value in relation to other currencies.
What is the difference between money and currency
The difference between money and currency is that money is the actual value that is traded for goods and services, and the currency is paper money or coins, say for example : I have to pay the electricity bill by دولار 200, but in fact its value is$ 200 since the bill is backed by the value of silver and gold that is held in place in the vault of the bank. As for the legitimate nominal value of دولار 200 in currency, we are allowed to buy goods and services with it, because it is the universally accepted means of exchange. However, the actual value or monetary value of the coin is in the value of the precious gold and silver metals that hold the value of the coin.
The topic of money, money and currency, is a very big topic that you can read the topic in Wikipedia.
What is the concept of crypto
The word "encrypted" means confidential, encrypted or say transactions digitally or via understandable codes over a specific protocol.
Encrypted is an electronic administration, an area, or even a program and its work is the conversion of information from one format to another for the purpose of compliance with standards, confidentiality, data compression or security.
this cryptocurrency is a series of cryptographic signatures related to each other, which are obtained as a result of solving cryptographic equations. Cryptography ensures the uniqueness of each currency and makes it valuable. Or say encrypted signatures can be likened to serial numbers on banknotes.
What is Cryptocurrency Cryptocurrency
Cryptocurrency is digital money or we say it is a payment method for the thing you are going to buy, but now it has a value like gold and silver, but digitally in the world, unlike the transactions we deal with international banks.
Cryptocurrency money exists only in the virtual world, and it is not printed in the form of coins or even minted, but at the same time you can convert this currency into local currencies through services that support this.
Cryptocurrency Cryptocurrency is a different type of money that we deal with in our daily lives, and it is one of the most secure currencies than digital money, secondly, Blockchain technology is used to create and implement transfers between network users, thirdly, all changes in the current state of the system are recorded and confirmed by each node.
Cryptocurrency works in an easy and fast way in transferring money between the two parties in the case of transactions, transfers are centered on the use of public and private encryption keys for security purposes, and the balance transfer process ends with a minimum processing fee, and this makes many people use cryptocurrency through the virtual world to avoid large shipping fees from most banks and financial institutions.
Pros and cons of cryptocurrencies
The situation where we are talking about what a cryptocurrency is, but without presenting the advantages and disadvantages, we will not be able to complete the topic, because the cryptocurrency has been talked about many times about the advantages and disadvantages.
Cons of cryptocurrencies
The main disadvantage of cryptocurrencies is that they are considered a currency for the virtual world, this currency does not have a central store, and this means one mistake you will lose your money completely, because they are considered anonymous transactions and also illegal transactions, such as tax evasion, money laundering and smuggling.
You should know that there are people who hide money and deal without revealing their identity, and the reason behind this act is to escape from repressive laws by claiming them.
Advantages of cryptocurrencies
One of the advantages of cryptocurrencies is credit, when your money is placed in a bag or platform, your account is protected with public and private keys and various forms of incentive plans such as proof-of-work or proof-of-stake mechanisms.
In modern systems, you have a wallet or account address with a public key, and this key is unknown to anyone except the account holders or the owner, meaning no one can hack the account, and among the advantages is that money transfer transactions are at the lowest fees, and this helps users avoid the high fees imposed by banks and financial institutions on wire transfers.
A summary of advantages and disadvantages catalysed:
- Decentralization.
- Anonymity.
- Persistence.
- Transparency.
- Reliability.
- Convenience of use.