What is cryptocurrency?Cryptocurrency is a digital currency that is not controlled by any central authority or government. The cryptocurrency can be used for making transactions without the need of any third party involvement.
In this article, we will discuss some basic aspects of cryptocurrency.
How does cryptocurrency work?
The cryptocurrencies are based on a decentralized network and they use peer-to-peer technology to create the network. In this network, all the transactions are made using public key cryptography. A public key is used to sign the transaction. The other part of the transaction is the private key. The private key is used to verify the transaction.
Types of cryptocurrency
There are many types of cryptocurrencies available. Some of the most popular types of cryptocurrency include Bitcoin, Litecoin, Dogecoin, Ripple and Monero.
Bitcoin is the first ever cryptocurrency and it was introduced in 2009. It is also known as the ‘digital gold’. The bitcoin network uses blockchain technology to store all the transactions. It is also the largest cryptocurrency with a market capitalization of over $100 billion.
Litecoin is another popular cryptocurrency. It was launched in 2011. It is based on the open source client code of Bitcoin. It is designed to provide faster transactions and lower fees.
Dogecoin is an alternative version of the bitcoin. It is named after a dog. It was launched in 2013. It has the same features as the bitcoin.
Ripple is a cryptocurrency developed by Ripple Labs. It is a distributed payment network that is based on the open source software.
Monero is another cryptocurrency. It is based on the CryptoNote protocol. It was introduced in 2014. It is considered to be one of the most secure cryptocurrencies.
Other popular cryptocurrencies include Namecoin, Peercoin, Ethereum and MaidSafeCoin.
Advantages of cryptocurrency
There are several advantages of cryptocurrency. It provides better security, lower fees, faster transactions and ease of use.
Disadvantages of cryptocurrency
The biggest disadvantage of cryptocurrency is its volatility. The prices of the cryptocurrencies can change very quickly. Another disadvantage is the high cost of mining.
Conclusion
We have discussed some of the basic aspects of cryptocurrency. Cryptocurrency is a new form of money that is gaining popularity.