An Introduction to Cryptocurrency-1
An Introduction to Cryptocurrency
In this introduction to cryptocurrency we look at what a cryptocurrency is, a few definitions and examples of crypto currency.
“A Cryptocurrency is a digital currency/asset in which encryption is used to regulate the creation and movement of the currency/asset whilst being independent of any bank.”
It being digital means that it exists within electronic technologies therefore makes it a form of electronic money.
Encryption is the process of encoding in a way that allows only authorised access to intelligible the data.
Encoding – transforming data from one form to another.
Examples of cryptocurrencies
There are many cryptocurrencies in existence at the moment. These are a few examples of the mainstream ones.
- Bitcoin Cash(BCH)
- Bitcoin SV(BSV)
- Stella Lumens(XLM)
Bitcoin was the first cryptocurrency and several cryptocurrencies are based on versions and principles of bitcoin.
Bitcoin, created as a purely peer to peer version of electronic money. It does not rely on a third party for a trusted relationship between parties.
This cuts costs on transactions(as there is no longer a third party). It removes dependency of central banks allowing for limitless borderless transactions. Government have no control over these transactions as there are not part of them. A true international currency.
The next article covers processes around the generation of cryptocurrencies and above all what makes them different from central banks currencies.
You can check more on blockchain related topics from here