C ryptocurrency can seem complicated, yet at its core, it’s simply a new type of electronic money. Think of the cash you use every day, yet instead of being regulated by a financial institution or federal government, it’s taken care of by a worldwide network of computers.
Let’s damage down the vital concepts to make it easy to understand.
1 Digital Cash for a Digital Globe
At its most standard, a cryptocurrency is a type of electronic or virtual money that uses cryptography for security. Unlike the money in your savings account, which is a digital depiction of a physical currency (like the united state dollar), cryptocurrency exists just in electronic form. You can’t hold a Bitcoin in your hand, yet you can send it to someone else throughout the globe, often for extremely low charges and without a third-party intermediary.
2 The Power of Decentralization
This is one of the most essential concept to grasp. Your checking account is streamlined , meaning a single establishment (your financial institution) controls your money. They can freeze your account, cost you fees, and verify all your deals.
Cryptocurrency is decentralized This suggests there is no single business, bank, or federal government that has or manages it. Rather, it’s run by a vast …