What is cryptocurrency

Cryptocurrency is a word made up of two words. Crypto which is a Latin word which means hidden. Whereas currency also comes from Latin word 'currentia', which is used for money-money. So cryptocurrency means hidden money. or secret money. Or Digital Rupee. Generally, cryptocurrency is a kind of digital money, which you cannot touch, but can keep. That is, it is a digital form of currency. It is not in your pocket in a solid form like a coin or note. It happens completely online.

Every country has its own currency. Like India has Rupee, America has Dollar. Every country has its own currency. That is, such a money-system which is valid by a country and the people there can buy essential things using it. That is, which has any value, it is called currency.

Simply put, cryptocurrency is a digital cash system, which is built on computer algorithms. It stays online only in Digit form. There is no control of any country or government on this. Initially it was declared illegal. But later due to the increasing popularity of Bitcoin, it has been legalized in many countries. Some countries are even bringing their own cryptocurrencies. Bitcoin is the most expensive virtual currency in the world.

Cryptocurrency currencies are used through blockchain software. These digital currencies are encrypted i.e. coded. It is managed through a decentralized system. In this, each transaction is verified by digital signature. Its records are kept with the help of cryptography. Buying through this is called Cryptocurrency Mining because every information has to be created digitally in the database. Those who do this mining are called miners.

To understand more in simple language, cryptocurrency is a virtual currency based on blockchain technology which is secured by cryptography. All this work is done through powerful computers. Its code is almost impossible to copy.

Whenever a transaction occurs in cryptocurrency, its information is recorded in the blockchain, that is, it is kept in a block. The work of security and encryption of this block is done by the miners. For this, they solve a cryptographic puzzle and find the appropriate Hash (a code) for the block. When a miner secures a block by finding a strong hash, it is added to the blockchain and verified by other nodes in the network. This process is called consensus. If the consensus is reached, the block is confirmed to be secure. If it is found to be correct, then cryptocoin is given to the miner who secures it. It is a reward which is considered to be proof of work.