CryptoCurrency is a form of digital money which is used just like normal Currency such as USD. The difference between the two is it is used for the purpose of exchanging information digitally through a process followed by the principles of cryptography.
What is Cryptography?
Cryptography is the science of giving security to data. It has been utilized historically as a method for giving secure communication between people, government offices, and military powers. Today, cryptography is a foundation of the present day security innovations used to ensure data and assets on both open and closed networks.
The first CryptoCurrency that came into the digital world was Bitcoin introduced in 2009 by a pseudonymous engineer named Satoshi Nakamoto. Bitcoin utilizes SHA-256, which is an arrangement of cryptographic hash capacities outlined by the U.S National Security Agency. Bitcoin is a CryptoCurrency that depends on the confirmation of-work framework. Till today hundreds of CryptoCurrencies have been introduced referred as Altcoins.
CryptoCurrency is converted electrically with monetary value into lines of code. It is a form of decentralized currency which is not abided by any governmental organizations like Federal Reserve System who produce fiat currency like USD.
CryptoCurrencies are typically introduced over the globe to get decrease in production over time like Bitcoin which have a limitation of 21 Million.
What Is Mining?
CryptoCurrency is a generated followed with an internet by anybody running an application called the digital currency miner. Mining would fire a certain amount of work for each coin. This work is done by solving complex mathematical problems or simultaneously verifying transactions on the digital currency network. All this work is done by software running on specialized computer mining hardware.
When two people exchange a CryptoCurrency coin over the internet other people report and verify that transaction. When your mining hardware has computed and recorded transactions and you are lucky enough to complete a block you are rewarded for this work with new crypto currency coin from the network.
Thousands of merchants including Dell, Overstock.com, Tigerdirect and many more now accept Bitcoin as a direct method of payment for goods and services. As more places accept CryptoCurrency the value of that currency tends to increase.