If nothing else, cryptocurrencies can certainly be cryptic to the average Jane and Joe.
The decentralized digital currencies got their start with Bitcoin on Jan. 3, 2009, and have been growing ever since. They’ve spawned a trillion-dollar industry to record transactions and create more “coins” in the process. Their use has expanded, as has the list of available cryptocurrencies.
Although the blockchain process creates what some experts refer to as an immutable record of transactions, other elements of the industry are still evolving and less dependable. The collapse of the cryptocurrency exchange FTX, for instance, led to criminal charges and the loss of billions in customer funds.
Cryptocurrencies, however, are gaining popularity from investors and users despite dramatic fluctuations in their value.
What is cryptocurrency?
In simple terms, it’s a form of digital currency that exists on the web and is accounted for using cryptography to keep track of transactions.
Separate nodes in an accounting network keep track of the transactions, with the decentralized database referred to as a blockchain.
A fuller explanation is available at https://shorturl.at/iyCFV.
What does it mean to mine bitcoin?
In the process of recording cryptocurrency transactions, groups of transactions are created to form a block, which are linked in a chain. Bankrate.com compares it to a long-running receipt.
Cryptocurrency primer:What is cryptocurrency?
Mining is the process used to add a block to the chain. To add a block, a mathematical problem must be solved; when it is, miners receive payment in the cryptocurrency. To solve the equations, miners use special computers that require large amounts of electricity to run.
What is a blockchain?
A blockchain is the string of transaction blocks linked together.
What are the most popular forms of cryptocurrency?
Bitcoin was the earliest of the cryptocurrencies and continues to be the leader. Others include ethereum, tether, USD coin and dogecoin, which was created as a joke.
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