How many of us heard about cryptocurrency? The word currency does give us a clue that it might be related to the Financial activity. Yes, you have guessed it right to some extent.
Cryptocurrencies are kind of new invention in the financial market of late. People use this as digital currency method to trade in the market. Some call this a method of digital cash too.
It is said that the birth of Cryptocurrency was to centralize the trading platform in the market where all the accounts checking, transaction are made simple and easy to understand and operate. This reduces double spending to a large extent. In short, there will be a central server managing the record about all balances.
In layman terms, these are kind of software that acts as a database, where few entries are made and are made with conditions and regulations which cannot be changed. They are made standard for all. There are various forms of cryptocurrency most important of all is Bitcoin other most common currency used is Ethereum, then we have Ripple, Lit coin, Monero, Ethereum classic, Dash, NEM, Augur, and waves. Each of these has their own features and work differently.
These cryptocurrencies is a kind of chain network in form of blocks, in simple terms, people call this as P2P technology.
How does this p2p technology work?
A person will send transaction request, the request will be broadcasted to all the peers in the group, and this transaction is validated say, using algorithms. The transaction once verified will form cryptocurrencies, depending what currency was agreed upon say Bitcoin or Ethereum or something else. Then a block of data to form ledger is created.
These activities are not done through any central bank, there are no any physical forms or existence all done through the network and of course, no other forms of tangible products exchanged example gold is not part of this technology.
Many are confused with Bitcoin and Ethereum software, do they work similar way? Are their features the same? And so many questions go on.
Well, both work the same manner but they are not the similar one Ethereum code review are given for new babies in trading to understand how it really works.
The economic model of Ethereum and Bitcoin is different, the block timing is set differently in both, and Ethereum works faster than Bitcoin. Flexibility in Ethereum is more than the Bitcoin. The algorithm used is much more advanced in Ethereum. These are the difference that makes Ethereum different from Bitcoin.
Visit the official website and customer service station, they provide a high-quality knowledge on the cryptocurrency for new beginners.