How cryptocurrency works for beginners?

Question

I am a beginner for cryptocurrency residing in London and wish to know about cryptocurrencies. I am curious to know how cryptocurrency works for beginners.

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Moris Johnsons 3 months 1 Answer 42 views 0

Answer ( 1 )

  1. Transactions are sent between peers using software called Cryptocurrency Wallets. The person creating the transaction uses the wallet software to transfer balances from one account (AKA a public address) to another.

    To transfer funds, knowledge of a password (AKA a private key) associated with the account is needed. Transactions made between peers are encrypted and then broadcast to the cryptocurrency’s network and queued up to be added to the public ledger.

    Transactions are then recorded on the public ledger via a process called “mining” (explained below). All users of a given cryptocurrency have access to the ledger if they choose to access it, for example by downloading and running a copy of the software called a Full Node Wallet, as opposed to holding their coins in a third party wallet like

    The transaction amounts are public, but who sent the transaction is encrypted (transactions are pseudo-anonymous). Each transaction leads back to a unique set of keys.
    Whoever owns a set of keys, owns the amount of cryptocurrency associated with those keys (just like whoever owns a bank account owns the money in it).

    Many transactions are added to a ledger at once. These “blocks” of transactions are added sequentially by miners. That is why the ledger and the technology behind it are called “block” “chain.” It is a “chain” of “blocks” of transactions.

    Some altcoins use unique mechanics. For example some coins offer fully private transactions and some don’t use blockchain at all.

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