Cryptocurrency is a virtual tool which is created alternatively to cash money. It uses “cryptography” (codes) in order to secure transactions made with cryptocurrency. There are few vital differences between virtual and normal currency systems. We can list them like:
- Cryptocurrency system does not have a central authority and due to this decentralization, economic situations of countries do not affect cryptocurrency.
- Crypto coins can be reached and used by only its owner.
- Crypto coins have produced by a method called “mining”.
What is Blockchain?
Blockchain is a closed system that collects and delivers data all around the world. In cryptocurrency systems, blockchain provides the system to make transactions with crypto money. If we want to simplify that, blockchain is a copybook that has so many pieces in different locations but all these pieces are connected with a net.
What is Mining?
Mining is the method must be used to earn cryptocurrency. In mining, specials devices are used to solve complex cryptographic problems. In theory, everyone with a computer and internet connection, can mine. After mining, systems used in blockchain verifies the transaction. Finally, if the transaction is proper, it gets recorded in the blockchain. Also graphic cards of computers can be used to do mining. The higher the power of the card, the higher the efficiency is.
There are so many crypto coin types. Some of the popular ones are:
Bitcoin was invented in 2008 by someone or a group of people using the name Satoshi Nakamoto. It is the most popular cryptocurrency in deep web. It uses peer-to-peer network so it doesn’t need any bank or authority. While using Bitcoin as a payment method, users became totally anonymous on web. Transactions or amounts can be seen but users are unknown because of the blockchain.
Ethereum is the second most popular cryptocurrency. Despite of Bitcoin, Ethereum is an innovator crypto coin. For instance, with Ethereum, investors can produce new programs and altcoins. Vitalik Buterin, co-founder of Ethereum, defines Ethereum as the oil of the cryptocurrency sector.
Dogecoin became popular with the tweets of Elon Musk in last few days. Dogecoin is usually used as a tip method in internet nowadays. It is much easier to produce Dogecoin than Bitcoin. With Dogecoin, investors can build a block per minute but with Bitcoin investors need 10 minutes to build a block.