Wondering what cryptocurrency is and how it works? Then you’re at the right place. You may refer to this as “cryptocurrency for dummies” if you like, but you will discover a simple cryptocurrency for beginners’ tutorial that answers all of your questions.

The majority of people have certainly heard of cryptocurrency, and it is unquestionably one of the sectors that is now receiving the most attention. Given that the cryptocurrency market may provide a return of several hundred thousand percent, it’s perhaps no surprise that more and more people are interested in investing in cryptocurrency, just like those betting on NFL Week 1 odds.

However, many people refuse to invest and are dubious about it merely because they are unfamiliar with it or find it scary. Simply said, it is a form of digital currency that works independently of banks and central governments, and it is well on its way to revolutionizing the way we conduct transactions.

This is what you need to know about cryptocurrency

Cryptocurrency is a digital currency that works independently of banks and central governments. This means that it is decentralized and thus exists exclusively digitally, and therefore does not exist in physical form. This is in contrast to ordinary fiat currencies, such as the EUR. The EUR is centralized because it is owned, controlled and controlled by the central bank. Today, there are thousands of different cryptocurrencies, the first of which was Bitcoin. Bitcoin was created in 2009, in the wake of the financial crisis, by an unknown person with the pseudonym Satoshi Nakamoto.

This person wanted a currency that was independent of central banks so that one did not have to go through third parties when carrying out transactions. So, cryptocurrency, simply explained, is a digital currency with no affiliation with banks or governments. Instead, the transactions are controlled in a distributed database called Blockchain.

The Blockchain

This distributed database collects information in a public ledger that is open for everyone to see. The way the information is collected is in blocks, which in turn are collected into a common chain of blocks. That’s exactly why it’s called blockchain. Regardless, when a block stores new information, i.e. when you complete a new transaction, this block must be approved by the participants in the block chain. These people are called miners.

So, cryptocurrency works solely because of Blockchain – which publicly stores information on a distributed and open network.

Source: Plato Data Intelligence: Platodata.ai