2. What is a Crypto-currency?
• crypto-currency is a digital currency designed to work as a medium of
exchange through a computer network that is not reliant on any central
authority, such as a government or bank, to uphold or maintain it. It is a
decentralized system for verifying that the parties to a transaction have
the money they claim to have, eliminating the need for traditional
intermediaries, such as banks, when funds are being transferred
between two entities
• Individual coin ownership records are stored in a digital ledger, which is
a computerized database using strong cryptography to
secure transaction records, control the creation of additional coins, and
verify the transfer of coin ownership.
3. How crypto currency
works
• Cryptocurrencies (which are completely digital) are generated through a
process called “mining”. This is a complex process. Basically, miners are
required to solve certain mathematical puzzles over specially equipped
computer systems to be rewarded with bitcoins in exchange.
• Users today can buy cryptocurrencies from central exchanges, brokers, and
individual currency owners or sell it to them. Exchanges or platforms like
Coinbase are the easiest ways to buy or sell cryptocurrencies.
• It is based on de-centralized or distributed ledger technology or blockchine
technology with encryption and decryption keys involved.
• Distributed ledgers use independent computers (referred to as nodes) to
record, share and synchronize transactions in their respective electronic
ledgers (instead of keeping data centralized as in a traditional ledger).
Blockchain organizes data into blocks, which are chained together in an
append only mode.
4. Difference between Digital currency and
Crypto currency
Crypto currency
• It is a currency that exist only in a
digital form only.
• It is not issued by any central
authority or bank.
• It posses a value based on its own
and doesn't need trust.
• It is not a currency based on a real
currency in the real world
• The value of it fluctuate based on
the demand and supply of it.
Digital Currency
• It is a digital form of real currency.
• It is currency that is issued by the
Central bank of a country.
• It has a value based on trust.
• It is based on real fiat currency.
• The value fluctuation is based on
US dollars and GDP of a country.
6. ETHEREUM (ETH)
• Ethereum is a decentralized, open-source blockchain with smart
contract functionality. Ether (Abbreviation ETH ) is the native crypto-currency of the
platform. Among cryptocurrencies, ether is second only to bitcoin in market
capitalization.
• Ethereum was conceived in 2013 by programmer Vitalik Buterin. Additional founders of
Ethereum included Gavin Wood, Charles Hoskinson, Anthony Di Iorio and Joseph
Lubin. In 2014, development work began and was crowdfunded, and the network went
live on 30 July 2015.
• Ethereum recently changed from proof of work to the proof of stack concept to reduce
the impact on the environment. It is called as Ethereum 2.0.
7. BITCOIN (BTC)
.
• Bitcoin is a crypto-currency, a digital asset that uses cryptography to control its creation
and management rather than relying on central authorities. Originally designed as
a medium of exchange, Bitcoin is now primarily regarded as a store of value.
• Bitcoin uses peer-to-peer technology to operate with no central authority or banks;
managing transactions and the issuing of bitcoins is carried out collectively by the network
• The history of bitcoin started with its invention and implementation by Satoshi Nakamoto,
who integrated many existing ideas from the cryptography community.
