What is cryptocurrency

Cryptocurrency is called a universal monetary unit, digital money, which has no paper equivalent, as well as an emission center. Electronic money can not be forged, as they are protected by a special cryptographic code. It is impossible to crack it in modern realities. The creation of an accessible cryptocurrency technology from scratch is now more understandable than many, even single, developers use, guided by the original principles and bringing something new from themselves.

The term itself began to be used with the advent of bitcoin and the publication of information about it in the media. The idea and its embodiment belongs to Satoshi Nakamoto, however, there is still no reliable information about whether he is a real person or a group of developers under a pseudonym. The concept was introduced at the end of October 2008, and referred to the complete anonymity of investors, strong protection against fraud, as well as absolute independence from regulatory organizations and real world currencies.

If we consider the cryptocurrency and its creation by the latest technology on the example of bitcoins, it is a kind of network of transactional blocks connecting each other. Each new block contains data about the previous one, which eventually builds a whole chain with information about what transactions were carried out earlier. In this case, information is obtained only about transactions, but not about the owners of the digital currency. Block creation is mining that generates a cryptographic signature.

The process of creating a new cryptocurrency is based on the same principles and is not infinite in the same way. For example, the same bitcoins can not be more than twenty-one million.