A cryptocurrency, cryptocurrency, or cryptocurrency is a digital exchange medium. In reality, the cryptocurrency is not the first digital currencies, it is used digital money for years, debit cards, credit transfers, and bale, etc. and everything is based on trust of the debtor, the Bank, the State and the Assets that exist in physical.
The concept or idea of cryptocurrency first was explained in 1998 by Wei Dai, where he recommended the idea of making a new kind of decentralized money that will be able to use cryptography to control.
Bernard von NotHaus is the Name of a Citizen of the USA. The U.S. that created the currency called Liberty Dollar, in 2007, about a dozen federal agents confiscated about two tons of coins with the image of Ron Paul, a Texas congressman. Also, they took approximately 500 pounds of silver and between 40 and 50 ounces of gold.
But at a hacker convention in Holland a young man using an Alias called “Satoshi Nakamoto” spoke to Bernard and told him that the Liberty Dollar was the inspiration for a new digital currency.
Satoshi was very kind, is a hero to many of us and we can enter the code of the bitcoin to read it and study it is entirely public and free, but you cannot control because there are already too many computers which generated a network.
- Cryptocurrency systems guarantee the security, integrity, and balance of their accounts (accounting) using a network of agents that verify (distrust) each other called miners.
- Breaking the existing security in a cryptocurrency is mathematically possible, but the cost to achieve it would be unusually high.
- Cryptocurrencies make possible the so-called internet of value, also known as the IoV (internet of value), also called the Internet of money: they are internet applications that allow the exchange of value in the form of cryptocurrencies.
- It goes straight from the buyer to the seller. In this way, we have a universal value transfer system, free of intermediations.
- Reduces the times. Although internet payments are quick, settlements between the parties take time, and the seller receives the number of days after payment. With the cryptocurrencies, the delay is in the order of minutes.
Eliminates the need to use financial agents to conduct transactions.
It was the first cryptocurrency in digital currency and computer software. The capital B of Bitcoin is the source code that creates a global payment network, using computers connected to the Internet.
Cryptocurrency employs a technology called” blockchain “” (blockchain in Spanish) generated by cryptographic algorithms. It is a kind of” decentralized digital accounting book “” in which all transactions are verified by an extensive computer network without the need for institutions to compensate or settle payments between the parties.
It uses a work-test system to prevent double-spending (for the same bitcoin to be used several times) and to reach consensus among all the nodes that make up the network by exchanging information on an unreliable and potentially compromised system (solves the problem of Byzantine Generals). Transactions do not require intermediaries, and the protocol is open source. Since then, many others have appeared with different characteristics and protocols.