how crypto works

Awesome Image

how crypto works

how crypto works

Cryptocurrency is a special form of digital currency based on cryptography. Most digital currencies use the Chinese blockchain to take advantage of key features such as decentralization, transparency, and immutability.

The decentralized nature of digital currencies means that no entity, group or organization controls them.

Cryptocurrencies can be sent directly to another person without the intervention of any intermediary on the Internet. This means that you will not need to open a bank account, use the services of banks or any other intermediary organization to send digital currencies to each other.

Cryptocurrencies, like rials and dollars, are currencies that are created and distributed through different mechanisms. The process of creating some of these currencies, such as bitcoins, is done by mining, and for some others, all the coins are already mined in the network.

Digital currencies are built on distributed general ledger technology, one of the major products of which is China Blockchain technology. The public blockchain used by most digital currencies provides the ability to view all transactions, both online and offline.

What is digital currency?
Bitcoin is considered by many to be the first true digital currency or cryptocurrency, the idea of ​​which was published in the Bitcoin White Paper in 2008 and the first coins of which were mined in 2009; Before Bitcoin, however, there had been many attempts to build a digital currency.

The idea of ​​digital currencies is rooted in two major problems: "trust in the third party" and "double spending".

When you use banks to transfer and hold money, you are actually trusting that bank. Even if you look at the whole story, trust is essential to get the most out of your work.

What is digital currency - Examples of digital currencies
The problem of double spending in financial systems, solved by central servers by checking inventories, prevented people from spending a certain amount of money again. This solution was introduced in a decentralized way in Bitcoin, and everyone could prevent others from cheating by examining the transaction history.

Bitcoin was introduced as the first e-money that could solve the problem of trust and double spending. People no longer had to trust a person, organization, group, or bank to transfer and hold money.

The issue of trust had become a major problem for human beings not only in money transfers but also in many other matters. For this reason, the untrustworthy system offered by Bitcoin was used in other human activities.

Gradually, digital currencies emerged to address a variety of concerns. Atrium, for example, introduced itself as a platform for developing various programs and executing smart contracts, and Ripple focused on restructuring interbank communications and providing a high-speed, low-cost payment system with an optimistic view of banks.

Today, many tokens are built on the basis of digital currencies such as Atrium, IAS and Theron, which use the power of the original blockchain to execute their transactions.

How do cryptocurrencies work?
Currency cryptocurrencies use different models to execute their transactions. Bitcoin, for example, uses a proof-of-work model in which miners or miners approve transactions.

These different models in blockchains, known as "consensus algorithms" or collective bargaining mechanisms, determine how network participants agree on whether or not to approve a transaction on the network.

Digital currency transactions operate on a peer-to-peer (P2P) basis, eliminating the need for intermediaries based on the model used.

How to make a transaction in the Bitcoin digital currency network
Nodes are responsible for monitoring the digital currency network and securing it. Nodes in different networks are selected in different ways. In Bitcoin, for example, there are miners or miners in charge, in Ias and Thorne, the selection of these nodes is voted on, and in stock proof networks, anyone who has locked part of their coins in the network as stocks. Can decide on transactions.

What is the difference between digital currencies and ordinary currencies?
Some unique features distinguish between digital currencies and regular currencies. Of course, not all of these features are present in all digital currencies, and there are some exceptions.

The first characteristic of digital currencies is the irreversibility of transactions. If you make a digital currency transfer and your transaction is confirmed, you will not be able to return it, and this will only be possible if the recipient is willing to do so. But this method is different in banks. If you have mistakenly transferred money to another personal account, you can eventually get it back with legal action. But if you mistakenly send another bitcoin or digital currency to another address, you should not worry about it!

The second unique feature of digital currencies is that they are anonymous or semi-anonymous. The addresses of wallets that have the same role as card numbers or account numbers in bank accounts do not include your identity information. These addresses, which consist of a series of expressions of letters and numbers, can be linked to the identity of individuals only by examining the history of transactions and in-depth analysis. Of course, some digital currencies evade and privacy

Axis such as Monroe, Zych and Green are designed to make identification very difficult and almost impossible.

What are the differences between digital currencies and regular currencies? 5 distinguishing features of digital currencies
The third characteristic of cryptocurrencies is that they are universal or cross-border. Sending money to different parts of the world may take several days with current systems, but digital currencies can do this in minutes. Digital currencies know no boundaries and can be sent from anywhere in the world.

The fourth feature is the security of digital currencies. This security in intra-network transactions is provided by hash power shared by individuals (in work proof systems). On the other hand, the public key and private key cryptography systems allow people to take control of their own digital currencies and no one else can access them.

The fifth characteristic that distinguishes cryptocurrencies from ordinary currencies is that they are not exclusive. Individuals do not need permission from any individual, group, or organization to be able to use various digital currency networks such as Bitcoin, Atrium, Light Coin, etc. They can download the entire transaction history and send or receive digital currency themselves without permission.

Types of digital currencies

Digital currencies other than bitcoins can be divided into two categories: coins and tokens. The quinces, or quinces, each have their own blockchain. Some coins are made from the original bitcoin code, or so-called forks of bitcoin. These are created from bitcoin by making minor corrections to variables such as the number of coins, the mining algorithm, the time it takes to create blocks, and so on.

Some other coins, such as Atrium, Ripple, and View, have built their network without the use of bitcoin codes. These blockchains are often created for more applications than digital money.

Types of digital currencies - Classification of coins and tokens

Tokens are another class of digital currencies that are built on a platform such as Atrium or View and IAS. They do not have a separate blockchain and use the power of the original blockchain to execute their transactions.

Tokens are awarded to investors during the initial public offering of coins or ICOs in exchange for collective capital. Tokens have their own uses and cannot be seen as a currency. The tokens themselves are divided into two categories: securities tokens and functional tokens.

Popular digital currencies

There are currently more than 2,200 digital currencies on the market, most of which are dead or abandoned projects. Throughout the 10-year history of digital currencies, some of them have maintained their place at the top of the most valuable tables from the very beginning.

Bitcoin is the most famous and oldest digital currency that has always been in the spotlight. It has been more than 10 years since the creation of this digital currency by Satoshi Nakamoto and since then it has not lost its first place among digital currencies.

The idea of ​​Atrium was introduced in 2013 by Vitalik Butrin. The coin was first released in 2014 and its network was launched in July 2015. Atrium came up with innovative ideas from the beginning. The digital currency of this platform is called ether and Atrium can be used to make tokens.

Ripple is a text-based platform designed to perform cheap and fast transactions. The payment system was launched in 2012 and supports common currencies in its network. Ripple focuses on partnering with banks and developing its payment system, and its coin is called XRP.

LightCoin was created by Charlie Lee with the goal of making faster payments by modifying Bitcoin code. This digital currency is known as digital silver and is one of the oldest coins.

Bitcoin Cache
One of the most famous bitcoin forks that was created in 2017 by changing the size of blocks. Bitcoin Cash was divided into two chains, ABC and SV, in 2018, so that the ABC chain continued to operate under the name Bitcoin Cash.

The reason for the popularity of digital currencies

Digital currencies quickly gained popularity due to their volatile market, the technology used in them, and their liberal ideas.

The digital currency market is highly volatile due to its infancy, and the price of one of them may rise by several hundred percent or fall by several tens of percent in one day.

The technology used in digital currencies, using mathematics-based cryptography, prevents fraud and encourages payment systems to be honest.

In addition, the liberal aspect and the abandonment of intermediaries have led people who were pessimistic about traditional financial systems to turn to digital currencies.



 Click on the button below to Exchange All cryptocyrrency online and automatically :




 Click on the button below to Buy All cryptocyrrency online and automatically :



 Click on the button below to Sell All cryptocyrrency online and automatically :




Click the image below to join our site’s Telegram Channel .Thanks for your support 




Exchange cryptocurrency TO Ethereum  ,  Exchange cryptocurrency TO Litecoin  ,  Exchange cryptocurrency TO Perfect Money USD  ,  Exchange cryptocurrency TO Payeer USD  ,  Exchange cryptocurrency TO PM e-Voucher USD  ,  Exchange cryptocurrency TO Ripple  ,  Exchange cryptocurrency TO Tether ERC20  ,  Exchange cryptocurrency TO Dogecoin  ,  Exchange cryptocurrency TO Tether TRC20  ,  Exchange cryptocurrency TO Payeer RUB  ,  Exchange cryptocurrency TO TRON  ,  Exchange cryptocurrency TO WebMoney  ,  Exchange cryptocurrency TO DigiByte  ,  Exchange cryptocurrency TO Ether Classic  ,  Exchange cryptocurrency TO Payeer EUR  ,  Exchange cryptocurrency TO Verge  ,  Exchange cryptocurrency TO Bitcoin Cash  ,  Exchange cryptocurrency TO Dash  ,  Exchange cryptocurrency TO Zcash  ,  Exchange cryptocurrency TO Advanced Cash USD  ,  Exchange cryptocurrency TO Stellar  ,  Exchange cryptocurrency TO Cardano  ,  Exchange cryptocurrency TO NEM  ,  Exchange cryptocurrency TO EOS  ,  Exchange cryptocurrency TO Swipe  ,  Exchange cryptocurrency TO Bancor  ,  Exchange cryptocurrency TO Decred  ,  Exchange cryptocurrency TO Numeraire  ,  Exchange cryptocurrency TO Storj  ,  Exchange cryptocurrency TO Horizen  ,  Exchange cryptocurrency TO Zcoin  ,  Exchange cryptocurrency TO Peercoin  ,  Exchange cryptocurrency TO ICON  ,  Exchange cryptocurrency TO Paxos  ,  Exchange cryptocurrency TO TrueUSD  ,  Exchange cryptocurrency TO USD Coin  ,  Exchange cryptocurrency TO Tezos  ,  Exchange cryptocurrency TO Cosmos  ,  Exchange cryptocurrency TO Loopring  ,  Exchange cryptocurrency TO Nano  ,  Exchange cryptocurrency TO BitTorrent  ,  Exchange cryptocurrency TO OmiseGO  ,  Exchange cryptocurrency TO Maker  ,  Exchange cryptocurrency TO Aragon  ,  Exchange cryptocurrency TO Chainlink  ,  Exchange cryptocurrency TO Enjin Coin  ,  Exchange cryptocurrency TO Zilliqa  ,  Exchange cryptocurrency TO VeChain  ,  Exchange cryptocurrency TO Ontology  ,  Exchange cryptocurrency TO Ravencoin  ,  Exchange cryptocurrency TO Golem  ,  Exchange cryptocurrency TO Tether Omni  ,  Exchange cryptocurrency TO VeThor Token  ,  Exchange cryptocurrency TO Augur  ,  Exchange cryptocurrency TO Komodo  ,  Exchange cryptocurrency TO Lisk  ,  Exchange cryptocurrency TO 0x  ,  Exchange cryptocurrency TO Bitcoin SV  ,  Exchange cryptocurrency TO Waves  ,  Exchange cryptocurrency TO NEO  ,  Exchange cryptocurrency TO Bitcoin Gold  ,  Exchange cryptocurrency TO Qtum  ,  Exchange cryptocurrency TO BAT  ,  Exchange cryptocurrency TO WebMoney WMR  ,  Exchange cryptocurrency TO Perfect Money EUR  ,  Exchange cryptocurrency TO Advanced Cash RUB  ,  Exchange cryptocurrency TO Pundi X  ,  Exchange cryptocurrency TO SushiSwap  ,  Exchange cryptocurrency TO Uniswap  ,  Exchange cryptocurrency TO yearn.finance  ,  Exchange cryptocurrency TO Decentraland  ,  Exchange cryptocurrency TO Algorand  ,  Exchange cryptocurrency TO Compound  ,  Exchange cryptocurrency TO JUST  ,  Exchange cryptocurrency TO DFI.Money  ,  Exchange cryptocurrency TO Polkadot  ,  Exchange cryptocurrency TO Solana  ,  Exchange cryptocurrency TO Theta Fuel  ,  Exchange cryptocurrency TO Filecoin  ,  Exchange cryptocurrency TO NEAR Protocol  ,  Exchange cryptocurrency TO TomoChain  ,  Exchange cryptocurrency TO Dent  ,  Exchange cryptocurrency TO Aion  ,  Exchange cryptocurrency TO Wanchain  ,  Exchange cryptocurrency TO IoTeX  ,  Exchange cryptocurrency TO iExec RLC  ,  Exchange cryptocurrency TO Aave  ,  Exchange cryptocurrency TO Chiliz  ,  Exchange cryptocurrency TO Origin Protocol  ,  Exchange cryptocurrency TO Kyber Network  ,  Exchange cryptocurrency TO Kava  ,  Exchange cryptocurrency TO FunFair  ,  Exchange cryptocurrency TO Civic  ,  Exchange cryptocurrency TO Band Protocol  ,  Exchange cryptocurrency TO Curve DAO Token  ,  Exchange cryptocurrency TO Kusama  ,  Exchange cryptocurrency TO COTI  ,  Exchange cryptocurrency TO SUN  ,  Exchange cryptocurrency TO UMA  ,  Exchange cryptocurrency TO Siacoin  ,  Exchange cryptocurrency TO Ocean Protocol  ,  Exchange cryptocurrency TO Fantom  ,  Exchange cryptocurrency TO binance coin  ,  Exchange cryptocurrency TO WINk  ,  Exchange cryptocurrency TO Synthetix  ,  Exchange cryptocurrency TO FTX Token  ,  Exchange cryptocurrency TO Graph  ,  Exchange cryptocurrency TO SKL  ,  Exchange cryptocurrency TO ALPHA