Cryptocurrencies are merely digital or virtual currencies. Since the release of the first decentralized cryptocurrency, Bitcoin, in 2009, more than 4000 other types of cryptocurrencies have emerged. Most famous among them include Ethereum, Litecoin, Dogecoin, Bitcoin Cash, Ripple, and Dash. Cryptocurrencies can also be used as a medium of exchange.
Some crypto terminologies will be first addressed in this review, and later on, a more detailed content will be released concerning them. These terms include Mining, Crypto exchanges, ICOs, Wallets, E-books, and E-learning.
All the transactions carried out using cryptocurrency are safely stored using cryptography – a powerful encryption technology. However, the transactions are recorded on a public ledger called the blockchain. The process of creating new cryptocurrencies is referred to as mining.
Mining occurs when a group of nodes uses their computing power to complete a ‘proof of work’ challenge, which is a complex mathematical puzzle. The speed of completion of the challenge depends on how powerful the computer system is. Once a miner is the first to answer the puzzle and confirm the validity of the transaction, he receives a reward of the digital token of the cryptocurrency that was validated.
Before owning any digital currency, you need a place to store them. This place is called a “wallet.” The wallet contains the public and private keys of your cryptocurrency address. Essential features of a well-designed wallet include security and convenience when conducting transactions. Many ways forms of wallets can store cryptocurrency. They include; software wallets (on desktop PC, laptops or smartphones), hardware wallets (USB drives), and paper wallets (record of your public and private keys on a piece of paper in QR codes).
An initial coin offering (ICO) is merely the creation and sale of digital currencies. During an ICO, a project creates a specific amount of cryptocurrencies and makes them available for purchase by the public, usually in exchange for fiat currency (dollars, pounds) or other cryptocurrencies like Bitcoin or ether. Exchanges, on the other hand, are the platforms with which cryptocurrencies are traded.
They provide a medium for which you can buy or sell digital tokens for fiat currency or other cryptocurrencies. Startup companies use ICO’s to raise capital for their projects, while exchanges offer a channel to purchase or sell cryptocurrency. On the Blockchain watching review page, you will find reviews on all things related to cryptocurrency.