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  • Can you explain about Cryptocurrency and Blockchain Technology?

    What are Cryptocurrency and Blockchain? Our experts will guide you through the steps.

    I have heard a lot about the Bitcoin? Whenever I tried to understand it, I got stuck with terms like cryptocurrency and blockchain. I tried to understand it a lot, could not get it. Please explain me cryptocurrency and blockchain as clearly as you can?
  • Answers

    2 Answers found.
  • Blockchain refers to the technology of distributed digital ledger. It is a system where all computers connected to the system have information about all the transactions that have occurred on the network. Not only these computers store the information, they also verify each new transaction that occurs on the Blockchain. Any new transaction that is verified by each of the node (computer) is attached to the existing chain individually. Here a majority algorithm works and once a certain percentage of nodes approve the transaction the chain is updated. This way the Blockchain system ensures that it is hackproof and is available irrespective of any random computer going down. However, Bitcoin is just one of the implementation of Blockchain. The reason why it is used interchangeably with Blockchain is because it was the first Blockchain implementation. However, today we have many more Blockchain implementations like Ethereum and Ripple and therefore it is not proper to use the name Bitcion to refer to the Blockchain technology.

    Bitcoin or Ether are currencies that are used in Bitcoin and Ethereum respectively. These currencies are mined by the nodes by solving complex caculations. This solving of calculation is referred to as Proof of Work. Once the proof is submitted, it is relayed to all nodes in the network. Other nodes drop their calculations of the same challenge and take up a new same challenge and this way mining goes on. When a new transaction has to happen, you need this digital currency to get your transaction processed. This is a way of paying the miner nodes for their work in validating your transaction. The amount of cryptocurrency pay is distributed among miners and the chain goes on.

  • Crypto currency is an online currency which exists in the internet only but can be converted to dollars or some local currency through crypto currency exchanges.

    One can get this currency through a complex mathematical mining in the internet with the help of a peculiar algorithm that gets tougher and tougher by each passing day. For an ordinary person the mining becomes a difficult proposition.

    However one can purchase or sell this through the online exchanges by tendering local currency through a bank account or a debit card.

    The logic of cryptocurrency transactions is associated with the block chain mechanism that prevents it from all possible fraudulent external activities.

    Bitcoin is one of such crypto currency and there are many in the fray now with more and more robust algorithms in use.

    Unfortunately, due to many reasons there is a fall in the market value of these virtual coins and due to that there is a fear in the minds of people in purchasing them. Earlier the trend picked up very well when their values were on the rise.

    Knowledge is power.

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