Cryptocurrency is a digital asset. The most notable difference with respect to other currencies is that no group or individual can accelerate the production of money and use it illegally or abusively in a significant way.
This is because the generation of a certain amount of currency units is done collectively at a rate that is limited by a previously defined and publicly known value.
In cryptocurrency systems, the security, integrity and balance of your account statements is guaranteed through a network of mutually verified agents called ‘miners’. They are, for the most part, public in general and actively protect the network by maintaining a high rate of processing algorithms, in order to have the opportunity to receive a small payment.
Blockchain, the axis of any cryptocurrency
Breaking the existing security in a cryptocurrency is mathematically possible, but the cost to achieve it would be unacceptably high. This is one of the advantages of Blockchain technology. A distributed database formed by chains of blocks designed to avoid their modification once a data has been published using a reliable time stamp and linking to a previous block. For this reason, blockchain is especially suitable for increasingly storing data ordered in time and without the possibility of modification or revision.
Indeed, blockchain technology, a kind of digital record book that is responsible for recording digital transactions, is growing rapidly. So much so that there are already several sectors and companies that use them as a collaborative work tool. All thanks to its level of security and its potential for improving operations. At the same time it allows to reduce costs and generate new income streams
The Bitcoin example
The blockchain concept was first applied in 2009 as part of Bitcoin, an innovative payment network and a new kind of money.
Bitcoin uses peer-to-peer technology or peer-to-peer technology to operate. The management of transactions and the issuance of bitcoins is carried out collectively by the network.
Thus, this currency is open source. Its design is public, nobody owns or controls Bitcoin and everyone can participate.
First steps with Bitcoin
To start with Bitcoin you can follow these four steps:
- Bitcoin is different from what you know and use every day. Before you start using Bitcoin, there are some guidelines with which you need to familiarize yourself to use it safely, and avoid common mistakes.
- Choose a purse. You can use a Bitcoin wallet in your daily life with your mobile device. You can set up one in a minute.
- Get bitcoins. You can get bitcoins by accepting them as payment for goods and services or by buying them from a friend or someone close to you. You can also buy them directly from an exchange place with your bank account.
- Spend bitcoins. There is a growing number of services and merchants that accept Bitcoin around the world. You can use Bitcoin to pay for these services and value your experience to help honest businesses gain more visibility.
Finally, since Bitcoin appeared in 2009, many other cryptocurrencies have appeared, with different characteristics and protocols. Among them are:
You only have to perform a thorough analysis of each cryptocurrency to choose the one that best suits you. And get on the revolution of the currency of the future by starting to use them.