Introduction to Cryptocurrency:
Cryptocurrency
is a type of digital or virtual currency that uses cryptography for security
and operates on a decentralized network of computers. Unlike traditional
currencies issued by governments and central banks, cryptocurrencies are
typically based on blockchain technology—a distributed ledger that records all
transactions across a network of computers.
Ø Decentralization:
Operates on a decentralized network of computers, avoiding central control.
Ø Blockchain Technology:
Transactions are recorded in a secure and transparent blockchain, a
decentralized ledger.
Ø Cryptography:
Uses cryptographic techniques for secure transactions and control of new unit
creation.
Ø Limited
Supply: Many cryptocurrencies have a capped supply to
prevent inflation.
Ø Anonymity/Pseudonymity:
While transactions are transparent, user identities are often pseudonymous.
Ø Global
Accessibility: Can be sent and received globally,
providing a borderless financial system.
Ø Volatility:
Prices can be highly volatile, presenting both opportunities and risks.
Ø Use
Cases: Varied applications, including a medium of exchange,
decentralized applications, and tokenization.
Ø Popular
Cryptocurrencies: Examples include Bitcoin (BTC), Ethereum
(ETH), Ripple (XRP), and Litecoin (LTC).
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