Neon Earth dictionary
💰Digital money? Fun for programmers? Or the payment system of the future?
What are cryptocurrencies and why are they so popular all over the world, let’s figure it out!
💸Cryptocurrency is virtual money that exists in a decentralized blockchain system. Their emission occurs in electronic form due to complex mathematical calculations.
Such money does not exist in physical form, and is not backed by any asset. Such money exists only on the Internet in the form of program code in the online database of specific transactions. However, they have their own exchange rate and can be used both as a means of payment and as a financial asset in which you can invest.
Transfers of funds, payments, etc. in this system are called transactions.
🤔How does it work?
For example, you want to transfer money to a friend. Information about who transferred to whom and how much can be viewed in the transaction. If the transaction is confirmed, it will be added to a new block. This block is then automatically added to the public chain and appears to all system users.
❌ You cannot change or delete already completed transactions! All transactions are fixed in the blockchain. It is inseparable because each block contains a link to the previous one. You cannot change or delete blocks, you can only add new ones. To hack the blockchain, you need to hack all the computers connected to the system, which is physically impossible!
💰April 5, 2022, the market capitalization of the most popular cryptocurrency in the world — Bitcoin — was $887.99 billion. And it continues to grow. It cannot be denied that the topic of cryptocurrencies is incredibly popular all over the world. We believe that this topic is the future.
What is your opinion?
❓Still have questions?
Ask them in chats or send them to a special form for questions. Then we will publish a post with answers to the most frequently asked questions!