What is cryptocurrency

What is cryptocurrency?

What is cryptocurrency? Cryptocurrency is a digital payment method based on blockchain technology such as hash functions and digital signatures.

These asymmetric encryption cryptocurrencies are generated by a collective system.

So the same generation is performed collectively.

Encryption

Cryptography deals with encryption and data protection.

There are 2 cryptographic procedures:

• Hash functions are essential for verifying data integrity, but above all for block mining.
• Digital signatures allow you to demonstrate encrypted information (not by exposing it).

BlockChain

Blockchain is the ledger in which all transactions are listed in blocks.

The recording of the individual blocks takes place in chronological order so that over time a verifiable recording results.

All nodes automatically download an integral copy of the Blockchain.

Block Mining

Mining requires a certain software to solve mathematical calculations and hash functions.

The reward for the extraction process goes to the miner whose computer first solved the calculation.

How are cryptocurrencies used?

There is a real possibility that cryptocurrency could become the new payment method.

Various online platforms including Expedia allow payment via cryptocurrency.

How does cryptocurrency payment work?

To make a cryptocurrency payment as well as having to accept this payment method; you need a pair of keys.

• Public Key: comparable to a bank account number
• Private Key, it is used to verify the operation, comparable to a password or a Tan.

How do you invest in cryptocurrency?

Cryptocurrency is comparable as a commodity.

However, cryptocurrencies are not monitored by banks or financial controls.

Purchase, sale and exchange of cryptocurrencies take place on trading platforms like Bitcoin.de