What is cryptocurrency?

Cryptocurrency (or cryptography) is a controversial digital asset designed to function as a means of cryptocurrency exchange to protect your transactions, additional monitoring units, and transfer assets. Cryptographic values ​​are a type of digital currency, alternative currency and virtual currency. Cryptocurrencies use decentralized control rather than a centralized system of electronic money and central banks.

The decentralized control of each cryptocurrency works through blockchain, which is the basis of public transactions, which functions as a distributed registry.

Formal definition

According to Jan Lansky, the crypto pot is a system that meets four conditions:

• The policy defines whether new cryptocurrency units can be created. If new cryptocurrency units can be designed, the system identifies the circumstances of the source with the ownership of these new units.

• If two different instructions are entered to change the purchase of the same cryptographic units, the system will perform at most one of them.

• The system allows transactions to be made in a way that changes the owner of the cryptographic unit. An entity with a transaction can only issue an entity that accredits the current owners of these units.

• The ownership of cryptocurrency units can be displayed exclusively in cryptocurrency.

Overview

Decentralized cryptography collectively produces the entire system of cryptographic services at the speed defined during the creation of the system and is publicly known. In centralized economic and banking policies, such as the Federal Reserve System, administrative committees, or governments that control the supply of money by printing units of trust funds or requiring complementary digital books. In the case of decentralized cryptocurrency, governments or companies cannot produce new units, but they are not compatible with other companies, banks, or entities that have real estate securities. The main technical system based on decentralized cryptocurrencies has been created by a group or person known as Satoshi Nakamoto.

As of May 2018, there were more than 1,800 transparent cryptographic specifications. The system of cryptocurrency, security, integrity and balance records is maintained by a community of mutually suspected underage parties who use their computer to confirm the time of the transaction, adding them to the record under a stamp scheme. of specific time.

Most cryptocurrencies are designed to gradually reduce the production of this coin by limiting the total amount of these coins that will be in circulation. Compared to the common currencies held or maintained by financial institutions

money in hand, police can be harder to catch cryptographic. This problem stems from the exploitation of cryptographic technologies.