Cryptocurrency
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Cryptocurrency is a digital or virtual form of currency that uses cryptography for security and operates independently of a central bank.
Cryptocurrencies are supported by a technology known as blockchain, which maintains a tamper-resistant record of transactions and keeps track of who owns , so as to prevent double spending and ensure the integrity and security of transactions
Each coin or unit of a cryptocurrency can be considered a digital asset, and these digital assets are associated with specific addresses on the blockchain network. When you own a certain amount of a cryptocurrency, such as Bitcoin or Ethereum, it can be seen as owning a digital asset in the form of that cryptocurrency. The ownership of these digital assets is represented by the balance or quantity associated with your unique address on the blockchain.
The unique address acts as a destination for receiving funds, and it also serves as a starting point for initiating transactions. When you want to send funds to someone else, you specify the recipient's address as the destination, and the transaction is recorded on the blockchain, updating the ownership of the digital assets accordingly.
is the process of adding important transaction details of Bitcoin to the Blockchain, like sender address, hash value, etc.
Mining needs high computational power and resources to solve difficult mathematical algorithms in order to add the transaction records successfully to the Blockchain.
The process of discovering a new Bitcoin is simply called Mining and Miners tend to find new Bitcoins by solving difficult and complex algorithms.
Since all Bitcoin Miners contribute their computational power for processing the transactions, they get a reward in return. All those Miners who solve the complex algorithms are awarded in terms of Bitcoin digital currency.
The reward for mining Bitcoin decreases over time to control the inflation rate of Bitcoin and reach maximum limit
wallets store users’ and keys while providing an easy-to-use interface to manage crypto balances.
The transaction data is signed with your private key. This signature proves that you are the rightful owner of the wallet and authorizes the transfer of funds or digital assets.
When a transaction is initiated from a wallet, the transaction data is signed with the corresponding private key. The recipient of the transaction can use the public key associated with the sender's address to verify the signature and ensure that the transaction was indeed authorized by the rightful owner of the wallet.
The public key is used to derive the unique address associated with a wallet. When someone wants to send funds to your wallet, they use your unique address.
The private key to authenticate you as the rightful owner of the wallet and grants you access to view and manage your assets. It's important to keep your private key secure and confidential. If someone gains access to your private key, they can know the address and potentially steal your assets.