Chapter 1 What is cryptocurrency?
A cryptocurrency is a currency… well it’s a digital currency that has no physical meaning or feel. It is a virtual currency that is secured by cryptography. This makes the currency secure, ALMOST impossible to steal and counterfeit along with spending it more than once.
There are a lot of terms and definitions that we need to understand for cryptocurrency.
The hope and goal of crypto are that we decentralize currently rather than using the current “fiat” system.
Overall A LOT of cryptos are in themselves decentralized networks that are based on blockchain technology. To give you a short understanding of blockchains. They have distributed databases that are shared among the nodes of a computer network. This goes further, in that as a database, the blockchain will store info in a digital format. The goal here is to maintain a secure but also decentralized record of the transactions. Another aspect is that with this blockchain innovation there is a guarantee the fidelity and security of a record of data generate trust without the need for a trusted third party.
