What is a cryptocurrency?

By mercurial9 | mercurial9 | 11 Jul 2020


A cryptocurrency is a currency which is electronic, or virtual since it has no physical shape. On a decentralized database network or blockchain, it is shared peer to peer, continuously modified and (deemed) immutable. A blockchain's source code is based on cryptography concepts for validating transactions and issuing the currency itself.

The vast majority of cryptocurrencies evade state and central bank controls. The blockchain functions as a central bank within the ecosystem. It is used to list all transactions performed on a general ledger in a cryptocurrency, and to issue regulations.

The registry is open on the Web and is available to everyone. It combines the constituent elements of each transaction performed: the sum of the transaction, the issuer's address, the recipient's address and a cryptographic imprint. Given all, each crypto-currency has its own working, the transactions are willingly untraceable for some of them.

Critics of cryptocurrencies do not consider them as such and instead tend to talk of "crypto-assets". In a legal standpoint, a cryptocurrency is not an accounting device, nor an exchange broker, nor a value shop. In the classical sense of the word, thus, it cannot be called a currency.

To buy a cryptocurrency, a person would most likely go to an online exchange or trading site to buy a cryptocurrency. A platform that can be respected for its seriousness and integrity by the number of transactions taking place there and the volume of business carried out, as well as the quality of the information sought by prospective buyers.

Cryptocurrencies are transferable against goods, services or money. It should be noted that very high volatility characterizes the nature of the value of almost all cryptocurrencies.

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