Detailed Knowledge About Cryptocurrency

-Detailed Knowledge of Cryptocurrency- Is a digital currency that is specifically designed and functions as a medium of exchange like a currency that is used for transactions. This currency uses cryptographic technology as a security and verifies transactions as well as to control the creation of new units of certain crypto currencies. basically, cryptocurrency is a limited entry in the database that cannot change unless certain conditions have been met.

In the history of the emergence of Cryptocurrency, in the 1990s there were many attempts to create a digital currency and were popular at the time. Before cryptocurrency emerged, there were systems such as Flooz, Beenz and DigiCash that had circulated on the market but failed. There are many factors that cause the system to fail, including fraud, financial problems, and even the result of disputes between company employees and bosses.

After several attempts at digital currencies failed, a new system and technology emerged in early 2009. Satoshi Nakamato, an anonymous programmer or group of programmers introduced Bitcoin. satoshi draws a detailed knowledge of cryptocurrency in the form of Bitcoin as a peer-to-peer electronic cash system. The system is fully decentralized, meaning that there is no server involved and no central control authority. this concept is very similar to peer-to-peer networks for sharing files.

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History Of Emergence Of Bitcoin

About Satoshi Nakamato And Bitcoin

One of the most important problems that must be resolved by the payment network is double expenses. this is a fraud technique that can spend the same amount of funds a second time. The traditional solution is with a trusted third party - a central server - that keeps track of balances and transactions. however, this method basically requires some authority to control your funds and all your privacy details.

In a decentralized network like Bitcoin, every participant must do this work. this is done through Blockchain - a public ledger (public book) of all transactions that have taken place on the network, and this is available to everyone. Therefore, everyone on the network can see the balance in each account.

Each transaction will have a file consisting of the sender's and recipient's public key (wallet address) and the number of coins transferred. Transactions must also be signed by the sender with their private key or private key. This is a basic cryptographic concept. then, the transaction will be broadcast on the network, and requires confirmation before the transferred funds or coins reach the recipient's address.

If the transaction has been broadcast into the cryptocurrency network, only miners can confirm the transaction by solving the cryptographic puzzle. after the miner or miner takes the transaction, they will mark it as a valid transaction and pass it on to the entire network. After that, each network node will add it to its database. after the transaction is confirmed, the transaction becomes non-refundable and the miner will receive a prize plus a transaction fee.

At this point it can be concluded that, to participate in digital cryptocurrency currencies, it requires detailed knowledge about cryptocurrency . because basically, each cryptocurrency network is based on an absolute consensus from all participants regarding the validity of balances and transactions. If the network node does not agree on one balance, the system will basically be damaged. however, there are many rules that were previously created and programmed into the network that will prevent this from happening.