What is a cryptocurrency?

Cryptocurrency (or cryptography) is a controversial digital asset designed to operate a cryptocurrency exchange for the security of your transactions, additional monitoring and asset transfer units. Cryptocurrencies are a type of digital currency, alternative currency and virtual currency. Cryptocurrencies use decentralized control instead of a centralized electronic money system and central banks.

Decentralized control of each cryptocurrency works through a blockchain, which is the basis of public transactions that functions as a distributed record.

Formal definition

According to Jan Lansky, crypto may is a system that meets four conditions:

• The policy determines whether new cryptocurrency units can be created. When new cryptocurrency units can be developed, the system determines the circumstances of the source with ownership of these new units.

• If two different instructions are entered to change the purchase of the same cryptographic units, the system performs no more than one of them.

• The system allows you to conduct transactions in such a way that the owner of the cryptographic unit changes. The transaction with the statement can be issued only by a person who confirms the current owners of these units.

• Ownership of cryptocurrency units can be indicated solely by cryptography.

Review

Decentralized cryptography collectively produces the entire system of cryptographic services at a rate determined at the time of system establishment and is known to the public. In centralized banking and economic policies, such as the Federal Reserve, administrative committees or governments control the money supply by printing trust fund units or requiring additional digital books. In the case of decentralized cryptocurrencies, governments or companies cannot produce new units, but they are not compatible with other companies, banks or organizations that have property value. The basic technical system, based on decentralized cryptocurrencies, was created by a group or individual known as Satoshi Nakamoto.

As of May 2018, there were more than 1,800 cryptocurrency specifications. The cryptocurrency, security, integrity and balance entry system is maintained by a community of mutually suspicious individuals, called minors, who use their computer to confirm transaction times by adding them to the registry according to a specific time stamping scheme.

Most copies of the crypt are designed to gradually reduce the production of this currency by limiting the total number of those coins that will be in circulation. Compared to conventional currencies held in financial institutions

money in hand, police may find it harder to catch the crypt. This problem stems from the use of cryptographic technology.