How do cryptocurrencies work - پلتفرم مشاورمون
How do cryptocurrencies work - پلتفرم مشاورمون

How do cryptocurrencies work

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Cryptocurrency  is a digitally encrypted decentralized exchange medium. Unlike the US dollar and the euro, there is no central authority to control and maintain the value of cryptocurrencies. Instead, these tasks are widely distributed to cryptocurrency users over the Internet. You can use

 crypto to buy regular goods and services, but most people invest in cryptocurrencies like other assets such as  stocks and precious metals. Cryptocurrencies are a novel and exciting asset class, but buying cryptocurrencies is dangerous because you need to do some research to fully understand how each system works.

 Bitcoin was the first cryptocurrency that Satoshi Nakamoto explained in principle  in the 2008 article “Bitcoin: Peer-to-Peer Electronic Cash System”. Mr. Nakamoto described this project as “an electronic payment system based on cryptographic certification rather than trust.”

 This encrypted evidence takes the form of transactions that are validated and recorded on the blockchain. What is the

 blockchain? Blockchain is an open distributed ledger that records transactions in code. In reality, it’s like a checkbook scattered across myriad computers around the world. The transaction is recorded in a “block” and then linked to a “chain” of previous cryptocurrency transactions.

 “Imagine a book that writes down everything you spend every day,” says Buchi Okoro, CEO and co-founder of the African crypto exchange Quidax. “Each page is like a block, and the entire book, which is a group of pages, is a blockchain.” With the

  blockchain, everyone who uses cryptocurrencies has their own copy of the book and is unified. Create a  transaction record that has been created.

 New transactions are logged, each copy of the blockchain is updated  with the new information, and all records are kept identical and accurate.

 To prevent fraud, each transaction is checked using  validation techniques such as Proof of Work and Proof of Stake.

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