What is a cryptocurrency?
Cryptocurrencies are defined as a digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank. Famous examples of cryptocurrencies include Bitcoin and Ethereum. They are essentially similar to dirhams or dollars, except they are not physical, you can’t hold them. They are more akin to the money you use when online banking, in that they exist digitally.
Many cryptocurrencies are produced by mining, a process in which real people use computing power to solve complex mathematical equations that authorise and authenticate transactions, receiving coins in return for their work.
No comments:
Post a Comment