What is Bitcoin or Cryptocurrency?

Question

Before becoming an investor or lay your hands on cryptocurrency market, it is quite crucial to understand what is bitcoin or what is cryptocurrency in detail?

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Marko Smith 3 years 1 Answer 4372 views 10

Answer ( 1 )

  1. Summary: Bitcoin is a currency for digital payments that uses cryptocurrency, a digital exchange medium, to create and manage financial transactions. All the bitcoins are created and the transactions are managed by Bitcoin P2P Network.

    A cryptocurrency is a virtual currency, designed to work as a medium of exchange, that uses cryptography to secure and verify transactions, as well as to control the creation of new units of a particular cryptocurrency. Essentially, cryptocurrencies are limited entries in a database that no one can change unless specific conditions are fulfilled.

    Within a cryptocurrency network, only miners can confirm transactions by solving a cryptographic puzzle. They take transactions, mark them as legitimate and spread them across the network. Afterwards, every node of the network adds it to its database. Once the transaction is confirmed it becomes unforgeable and irreversible and a miner receives a reward, plus the transaction fees.

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