This term was born after the 2008 financial crisis in the USA. It was Satoshi Nakamoto who defined the Bitcoin protocol as a P2P (peer-to-peer) digital money system, electronic currencies that remain as electronic data on the network. In short, a cryptocurrency is virtual money that is exchanged through a digital medium without the need for intermediaries or, in other words, decentralized since it does not depend on governments or banks.
The first digital currency to start operating was oman phone number data Bitcoin (BCT) in 2010, but currently there is a wide variety of cryptocurrencies with different characteristics and protocols associated with them such as: Litecoin, Primecoin, Namecoin, Ripple, Dogecoin, Ethereum, Dash…
Image variety of cryptocurrencies
How does it work and what are its benefits?
These systems guarantee the integrity, security and balance of accounting thanks to a network of agents that verify each movement. These agents are called miners. Their job is to solve complex mathematical calculations in which they compete with the mission of verifying cryptocurrency transactions, that is, they have a role similar to a virtual notary. The first one to succeed generates in the system what is called a new block that joins the chain, in exchange for a small financial compensation in the form of cryptocurrency.
What is blockchain ? As we have explained before, blockchain is the set of data that stores information about transactions that have been verified by miners and acts as a large, fully accessible digital ledger, replicated by the entire community of bitcoin users that cannot be modified.
To carry out transactions, a virtual wallet is necessary, which we access through an application or our web browser. Each wallet is protected by credentials and has a unique identifier or address that controls the value it holds.
Image of the Bitcoin community network
If you want to have virtual money, you can invest legal tender. Depending on the type of cryptocurrency, it will have one value or another in the cryptocurrency market. It should also be noted that its value varies from time to time due to market fluctuations, supply and demand, and the number of cryptocurrencies issued. In the case of Bitcoin, there is a limited number of coins issued, which is set at 21 million Bitcoins. For this reason, there are many investors and speculators who analyze this type of market and make a profit from it.
