207
The term cryptocurrency (сrypto currency) was first used by Forbes magazine editor Andy Greenberg. The prefix "crypto" in the name means "encrypted" or cryptographic.
Such a currency essentially represents a chain of linked and encoded signatures that are formed as a result of solving cryptoequations. Each virtual cryptocoin is unique, and its signature can be compared with the unique serial number of the banknote.
Before the appearance of bitcoin, there were already attempts to create crypto-money. The idea to strengthen the security of electronic payments was put forward by Nick Szabo in the Bit Gold project.
If it is even simpler, cryptocurrency is a payment instrument that exists only on the Internet and has no physical analogues.
To carry out operations using cryptocurrencies, a technology called "blockchain" is used. According to it, all data about operations within the system are stored on many PCs around the world, and information about changes to this system is registered and confirmed by each of these PCs.
The virtual coin is obtained after cryptographic calculation and completely excludes the possibility of a duplicate or forgery. In some countries, crypto-money has the same circulation as real currency and can be exchanged for real money on special exchange sites.
One of the key features of cryptocurrencies is decentralization: there is no single governing body and financial institution. Information about cryptocurrencies is completely public — data about operations and balances are open to all interested parties and are updated after the creation of each new information block. Creating new blocks is mining.
Anyone can "mine" new coins, but this requires the most powerful computing equipment and a stable, powerful connection to the network.
What are cryptocurrencies
As of June 8, 2020, 5549 cryptocurrencies with a total capitalization of $273,772,869,583 were registered in the world, and three quarters of this amount was divided between the twenty largest blockchain projects.\
Conventionally, such currencies can be divided into:
- Currencies Coin or public payment system coins.
- Platforms Coins or internal tokens of crypto-platforms.
- Cryptocurrency Exchanges or internal tokens of the trading platform (exchange payment instruments).
- Utility Tokens or utility tokens, also called App Coins. Necessary for ICO.
- Security Tokens or hardware tokens are a direct analogue of securities distributed among investors.
- Crypto Commodities or crypto-goods. These Tokens are used to pay for hosting, media content, and other goods/services within a specific platform.
- Stable Coins. Cryptocurrency backed by real currencies.
Where to find out more
As for Runet, it is very detailed all about cryptocurrency you can find out on the portal Altcoinlog. Here they publish fresh cryptosphere news, current cryptocurrency rates, interviews with industry experts, and useful information for beginners.
