One of the most popular agenda items of recent years is cryptocurrencies. These new currencies, which entered our lives about 8-9 years ago, have been developed quietly for a while, but have attracted a lot of attention from everyone, from presidents to giant investment companies for several years.
Cryptocurrencies that are still a big question mark for the end users, that is a little far from the technology and internet world, and we will try to address the important details of this topic under different headings. Thus, a series will be created in which everyone can understand cryptocurrencies more easily, and we will clarify what should be done by those who want to actively participate in this issue in the future because cryptocurrencies are still reaching a niche audience even in the technology community.
What is Cryptology?
When talking about cryptocurrencies, it is useful to clarify what is "crypto / cryptology" first. Cryptology is an encryption science. We can also explain it as the process of encrypting the data (text, numbers or any message) according to a certain system, sending it to the receiver through a secure environment, and deciphering this encryption system.
What is crypto money?
Cryptocurrency is a digital and virtual currency that uses cryptology science for security and they are encrypted based on mathematics. In fact, we have been using these money for years in our debit cards, virtual cards or every transaction we make in the virtual environment. We were spending virtual money without physically getting money out of the banks' vaults, and in a way these were also cryptocurrencies because only numerical changes occurred in the systems. We can say that the new generation of crypto coins basically works with this logic. The main reason why it attracts a lot of attention and likes compared to other currencies in the world is that it has an organic structure. So it cannot be managed by any government or central authority, yet. This allows this currency to be said to be more secure.
How did crypto coins first appear?
We know from the history books that the basis of the monetary system we use was discovered by the Lydians. So how did crypto money first appear? This is probably one of the biggest secrets of the internet world, who created the first cryptocurrency, bitcoin? As the founder of Bitcoin, all sources point to the name "Satoshi Nakamoto", but the interesting thing is that it is unknown who or what this name represents. In other words, it is an open source software developed by a person or group using the nickname Bitcoin Sahoshi Nakamoto, which we can call the ancestor of cryptocurrencies (since Bitcoin is the first and most adopted cryptocurrency by society). Although there are many rumors circulating, it is not clear who or who is the exact equivalent of this name at the moment.
How is crypto money produced?
We have stated that the money does not depend on a central authority or government. The production of these coins, just like their assets, has a completely user-based model. What we need to know first is that every cryptocurrency has a certain production limit. As an example of Bitcoin, only 21 million bitcoins can be found in the first published protocols. So it has a limit in terms of production. For this reason, the demand for this money is increasing day by day because it is getting harder and harder to find.
If we go back to the production process, the crypto money production process is literally mining. In other words, just like digging to find gold, math problems are tried to be solved by software to find crypto money. Since everyone has the right to solve and produce, we can say that the most working, producing more. Yes, if you have the necessary technological systems (basically processor power and internet connection), you can be one of these manufacturers.
