How does cryptocurrency work?
Cryptocurrency operates on a public ledger called the blockchain, a record of all transactions that is maintained by the people who own the currency. Units of cryptocurrency are created through a process called mining, which involves using the power of computers to solve complex mathematical puzzles to create coins. Users can also buy the currency from a broker and then store and spend them in a crypto wallet.
Although Bitcoin has been around since 2009, cryptocurrency and blockchain technology are still relatively new to money. They are expected to have even more uses in the future. Bonds, stocks and other financial assets can also be bought and sold using this technology.
Names of some popular cryptocurrencies
There are hundreds of cryptocurrencies in the world. Some of the most popular names include: Bitcoin, Ethereum, Litecoin, Ripple.
Bitcoin, which was launched in 2009, was the first cryptocurrency and is still the most widely traded cryptocurrency today. It was created by Satoshi Nakamoto, who is believed to be a fake name for a person or group. The real identity is not known till date.
Ethereum was created in the year 2015. Ethereum is a blockchain platform that has its own cryptocurrency. It is called Ether (ETH) or Ethereum. It is the most popular cryptocurrency after Bitcoin.
Litecoin is also similar to Bitcoin, but it has made new changes quickly. Such as faster payments and more ways to make transactions.
Ripple is a distributed ledger system created in 2012. It can be used to track not only cryptocurrencies, but also different types of transactions. Its company has worked with many banks and financial institutions.
Apart from Bitcoin, all other cryptocurrencies are called 'altcoins', so that they can be differentiated from the real ones.
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