What is Crypto Currency?

Spread the love

What is virtual currency? In this article you will find everything you need to know!

What is a crypto currency: the trap and hook of the 21st century – or  the real money of the future?

Today, this topic is the most debatable and most controversial in the context of modern economies and societies. There are supporters of this type of  currency who believe that this is the future, as well as those who are skeptical about this, considering that this is a deception or a hook of businessmen or hackers.

Today it will be difficult for you to find at least one institution, a bank, a company, an organization, etc., which would not investigate the crypto currency, write about it articles or not start the so-called block chain-project.

 But, in addition to noise and press releases, the vast majority of people – even bankers, consultants, scientists and developers – have very limited knowledge about this case. They often do not even understand the basic concepts and principles of this action.

So, where did the crypto currency come from? Why do you have to learn  more about it? And what do you need to know about crypto currency to properly use it?

Few people know but crypto currency  crippled up as a by-product of another invention with similar content. Satoshi Nakamoto, an unknown inventor of bitcoin, the first and most important crypto currency, never intended to invent something like that.

In his announcement of Bitcoin at the end of 2008, he aid that he had developed an “electronic system of peer-to-peer monetary unit.” His goal is to invent something that many people could not create – digital money. After all the centralized attempts failed, this inventor  tried to build a digital cash system without a central body.  This decision was the birth of crypto currency. So, let’s try to make it as simple as possible:

To implement digital money, you need a network of payments with accounts, balances and transactions. It’s easy to understand. One of the main problems that each payment network has to solve is the prevention of so-called double costs: preventing one entity from spending the same amount twice. This is usually done by the central server, which records the remnants. In a decentralized network you do not have this server. So, for this work, every network essence is needed. Each member of the network must have a list of all transactions in order to check that future operations are in progress or an attempt to double costs. But how?

Nobody knew until Satoshi came out of nowhere. In fact, nobody believed that it was even possible.

He proved that it is possible. His main innovation was to reach consensus without central government. Crypto tools are part of this solution!