Maybe the term cryptocurrency is not very familiar to some people. However, you must have at least heard of Bitcoin. Check out the explanation of cryptocurrency, its uses, and advantages and disadvantages in the following article.

Cryptocurrency is a term for digital currency that can be used for transactions between users without the need to go through a third party. If in transactions generally the bank acts as a third party, in cryptocurrency, no one acts as an intermediary.

Cryptocurrency transactions originate from computer networks that use certain calculation algorithms. This mathematical calculation is called cryptography which uses blockchain technology. Bitcoin is the first and largest type of cryptocurrency.

Prinsip Cryptocurrency

To better understand cryptocurrency, consider the explanation of each of the following characteristics:

Digital: Cryptocurrency is digital or virtual money, so it does not have a real form like coins or paper money.

Peer-to-peer : Cryptocurrency is passed from sender to recipient online.

Global : Cryptocurrency is global and applies to all countries as long as that country recognizes cryptocurrency.

Encrypted : Unlike bank accounts that use real names, real identities are not used in cryptocurrency accounts. Users are hidden but everyone can see all transactions that occur on the blockchain. Additionally, there are no restrictions or rules on what cryptocurrency transactions can be used for.

Decentralized: Banks do not act as money storage centers. Cryptocurrencies are not managed by a central server, that's why they are called decentralized.

However, all transactions are still recorded on the blockchain. Recording is done by cryptocurrency miners. Miners are people who run servers and play a role in verifying transactions. The way to do this is by solving complex cryptographic puzzles to validate transactions. If successful, miners will receive a commission in the form of digital money that can be used.

Mining this digital money requires a series of software and solving computer algorithms. The device used must be a computer with special and sophisticated specifications, as well as large data storage.

Blockchain is like a ledger that contains data for every transaction. Anyone can access this platform even if they don't make virtual transactions. #blockchain #Binance #Follow