A cryptocurrency is a digital or virtual currency that uses cryptography for security. A cryptocurrency is difficult to counterfeit because of this security feature. A defining feature of a cryptocurrency, and arguably its most endearing allure, is its organic nature. it is not issued by any central authority, rendering it theoretically immune to government interference or manipulation.
How Does Cryptocurrency Work?
Cryptocurrencies provide a viable method of issuing tracking ownership of unique digital representations of value, which we call money.
Cryptocurrencies are fully self-contained systems that both control and track each unit of cryptocurrency. Each individual unit acts like peice data moving around a network. Units of a cryptocurrency can be as small as $0.01 USDm or as big as $1 Billion USD. Some cryptocurrencies are controlled by a single entity (i.e. centralized) and others are controlled by the public (i.e. decentralized).
Cryptocurrencies use various timestamping schemes to avoid the need for a trusted third party to verify the transactions added to the blockchain ledger. Bitcoin
, the most popular cryptocurrency, uses a Proof-of-work scheme, which is also known as Mining. Other cryptocurrencies achieve the same result with alternative approaches that are often labeled Consensus Protocols or Consensus Platforms.
What are the Best Cryptocurrencies?
- Bitcoin (BTC)
- Litecoin (LTC)
- Ethereum (ETH)
- Zcash (ZEC)
- Dash (DASH)
- Ripple (XRP)
- Monero (XMR)