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What is cryptocurrency?

What should you know about the crryptocurrency?

how cryptocurrency fights money and stabilizes the economy

A cryptocurrency is a medium of exchange that uses cryptographic principles to secure transactions and control the creation of units of exchange. Cryptocurrency is a type of digital currency (or virtual currency). After Bitcoin became the first decentralized cryptocurrency in 2009, the term cryptocurrency has been used to refer to such designs. Several similar cryptocurrencies have been created since then, often referred to as altcoins. Cryptocurrency is based on a decentralized consensus mechanism, as opposed to a banking financial system that relies on a centralized regulatory system.

 

Definition

According to Jan Lansky, cryptocurrencies are systems that satisfy six conditions:

  1. The system does not require a central authority, and its state is maintained through a distributed consensus mechanism.
  2. The system keeps records of cryptocurrencies and their ownership.
  3. The system defines whether new cryptocurrencies can be generated. If so, the system needs to define the origin of the new coins and how to determine the owners of those new coins.
  4. Ownership of cryptocurrencies can only be proven through cryptographic means.
  5. The system allows the ownership of cryptocurrencies to be changed through transactions. Transactions can only be issued from entities that can demonstrate current ownership of the cryptocurrency.
  6. If two instructions to change the ownership of the same cryptocurrency are generated at the same time, the system can only execute at most one of them.

In March 2018, the term cryptocurrency was added to Webster’s dictionary.

 

Architecture

The entire system collaborates to generate a decentralized cryptocurrency through a currency issuance rate that is publicly defined when the cryptocurrency system is built. In traditional centralized banking and economic systems (such as the Federal Reserve System), corporate boards or governments control the supply of money by printing fiat money or by augmenting digital bank ledgers. In a decentralized cryptocurrency system, companies or governments cannot create new cryptocurrencies and so far have not provided endorsements to other companies, banks or corporate entities that hold the value of the assets. The technical architecture of a decentralized cryptocurrency system is built by an individual or group named Satoshi Nakamoto.

As of May 2018, there are more than 1,800 cryptocurrency standards. In a cryptocurrency system, distrusting participants (called miners) maintain the security, integrity, and balances of the ledger: they use computers to help verify transactions, time stamp them, and use computers to help validate transactions, and use a specific timestamp mechanism Add the transaction to the ledger.

In the design of most cryptocurrency systems, the production of currency will gradually decrease so that the total amount of currency in circulation does not exceed a set cap. Compared to traditional currencies held in financial institutions and cash held in self-custody, cryptocurrencies are more difficult to search or seize by law enforcement agencies.

 

Type

As of February 2022, there are more than 10,000 cryptocurrencies in circulation in the market, such as Bitcoin and Ethereum.

Name Code
Bitcoin BTC
Ethereum ETH
Binance Coin BNB
Ripple XRP
Litecoin LTC
Dogecoin DOGE
Dash DASH
EOS.IO EOS
Tether USDT
Globaldce GDCE

What are the machines that produce Bitcoin?

Here are some of the leading Bitcoin ASIC mining Hardwares: Antminer S19 XP (Learn why choose this model?), Antminer S19 pro, Whatminer M50S and WhatsMiner M30S++. These vary in hash rate rating, power consumption, and price.

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