When i joined steemit , the community , i did not hear about cryptocurrency a lot , just a few speculations , taughts , and i did not really understand how and the cryptocurrency works .
I do not want to say that i completely understand now but i an getting the main idea of crypto.
i want to share basic stuff that i knew when i started steemit , somebody to tell me .Ofcourse i started searching online and got a few answers that cleared my mind a bit.
So let's begin.
1. Good to know : Cryptocurrency is a type of virtual coin , used as a mean of paying. There are many cryptocurrencies outthere like : Bitcoin(BTC) , Ripple , Litecoin , Dogecoin ant others ). Its name is given by the fact it is using cryptography and is decentralized in order to control tranzactions and prevent double amount of money spent , an existing problem for current valute. Important to say not to compare the cryptocurrency with a DIGITAL COIN. Legally , this is not a digital coin .
Further things to know :
2.Digital wallet.
Digital wallet is , in general the same as a bank account , allows recieving of cryptocurrencies and sent to other accounts . Wallets store private passwork for accesing bitcoin adress .
3.Transactions.
Transactions in cryptocurrencies are secure with help of cryptography between digital wallets .Every wallet recieve a private key , that blocks modifications from another person , this fact making tranzactions very sure .
4.Mining.
Cryptocurrency can be bought , but created too .The process of creating is called "mining".
The participants in the network are known as miners .This miners check tranzactions and share in a database called blockchain. The mining operation is very complex and is very difficult to realize on your own, by a single user .This way , were made groups of miners called "mining pools" .
5.Advantages and Dissadvantages .
Advantages :
- a decentralized system , no central autority ,like a central bank
- variable comisions
- no linit for transfers
- really fast transfer anywhere in the world
- payment cand be done without personal data to be associated with tranzaction
- user have permanently control of tranzactions
- possibility of createing a copy of cryptocurrency
- personal data of the user is hidden
Dissadvantages :
- reduced reuse
- ireversibility of tranzactions , canceling is imposibile
- interdiction of some type of cryptocurrency in some countryes
- requiers a high level of security
- not all of comercians accept cryptocurrency as a payment method
Cryptocurrency : Bitcoin , Ethereum , Bytecoin , Ripple . Litecoin , Monero , Ethereum Classic , Daash , MaidSafeCoin , Augur , Steemit , Nem , Iconomi ,Factom , Waves , Golem , Dogecoin , Zcash , DigixDAO , Ardor , Stellar Lumens .
These are a few of them .
Finally , here i am .
I am getting to understand better what cryptocurrency means . Hope you find this taughts useful .