Cryptocurrency Technologies (What You Need To Known About Series 2)

What is Crypto Currency?
A cryptocurrency is a medium of exchange like normal currencies such as USD, but designed for the
purpose of exchanging digital information through a process made possible by certain principles of
cryptography. Cryptography is used to secure the transactions and to control the creation of new coins.

Why Crypto Currency?
Money exists to facilitate trade. Through the centuries trade has become incredibly complex everyone trades
with everyone worldwide. Trade is recorded in book keeping, this information is often isolated in closed to
the public. This is the reason why we use third parties and middlemen we trust to facilitate and approve our
transactions. Think governments, banks, accountants, notaries and the paper money in your wallet. We call
these trusted third parties. Cryptocurrency software enables a network of computers to maintain a collective
bookkeeping via the internet. This bookkeeping is neither closed nor in control of one party or a central
authority. Rather, it is public, and available in one digital ledger which is fully distributed across the
network. We call this the blockchain. In the blockchain all the transactions are logged, including
information on the time, date, participants and amount of every single transaction. Each node in the network
owns a full copy of the blockchain.

On the basis of complicated state-of-the-art mathematical principles the
transactions are verified by the cryptocurrency miners, whom maintain the ledger. The mathematical
principles also ensure that these nodes automatically and continuously agree about the current state of the
ledger and every transaction in it. If anyone attempts to corrupt transaction the nodes will not arrive at a
consensus and hence will refuse to incorporate the transaction in the blockchain. So every transaction is
public and thousands of nodes unanimously agreed that a transaction has occurred on date X at time Y. It’s
almost like there’s a notary present at every transaction. This way everyone have access to a shared single
source of truth. The ledger does not care wetter a cryptocurrency represents a certain amount of Euros or
Dollars, or anything else of value, or property for that matter. Users can decide for themselves what a unit
of cryptocurrency represents. A cryptocurrency like Bitcoin is divisible in to 100 million units and each
unit is both individually identifiable and programmable. This means that users can assign properties to each
unit, users can program a unit to represent a Euro cent, or a share in a company, a kilowatt our energy or
digital certificate of ownership. Because of if this cryptocurrencies and blockchain technology could be
used for more than simply money and payments.