What Is A Cryptocurrency?

image of the cryptocurrency bitcoin

Cryptocurrency is a digital currency that functions as a medium of exchange, utilizing the process of cryptography enables users to transact securely using these digital coins. They operate on a distributed ledger called a blockchain, where all transactions using a cryptocurrency is made public and permanently recorded. Units are produced through a process known as mining, where special computer software is used to solve mathematical problems in exchange for a unit or more of that currency. Due to their decentralized technology on which they operate, the supply of a cryptocurrency is not subject to the control of a central authority; the total supply is normally predetermined, which is made clear to all users.

Bitcoin possesses the title as the first ever decentralized cryptocurrency, originally conceived in 2009 by an individual or group under the pseudonym Satoshi Nakamoto. However, there are now numerous cryptocurrencies since the inception of Bitcoin, the number being well above 800+. These cryptocurrencies are known as ‘altcoins’, signifying an alternative to Bitcoin.

Bisade is the co-founder of Mycryptopedia. He believes that cryptocurrency and blockchain are revolutionary, and can't wait to see how it will disrupt our lives. He also can't wait to buy his first Lambo and go to the moon!Connect with Bisade on Linkedin and Twitter by clicking the icons below!