What is blockchain and cryptocurrency?
You have probably heard about blockchain, without knowing what it really represents. In this article, we invite you to discover all you need to know about the blockchain and it will have no secrets for you.
Definition of the blockchain
The blockchain is a technology that will allow to store and transmit information in a completely transparent and secure way. A blockchain is also a database that contains all the history of exchanges made between users since its creation. Some blockchains are private while others are public. The blockchain is often compared to a large book that remains anonymous and unfalsifiable. We often talk about blockchain with cryptocurrency such as Bitcoin , Ethereum or Ripple . The blockchain will finally allow you to exchange virtual currencies safely and all information has a perfect traceability.
The operation of the blockchain
Here, we propose to discover how the blockchain actually works. This technology will make it possible to store and transmit information in a completely transparent and secure manner. Thus, nobody manages the exchanges externally. All exchanges are saved and a history is created. Each movement is saved in a new block. The blockchain is very often used for monetary transactions. It is for this reason that cryptocurrency is the most traceable and most transparent currency at present. However, the blockchain can also be used for scientific research.
What is cryptocurrency?
Cryptocurrency is a virtual currency that does not have a physical form.
It is generated by open source software and users. This currency is fully encrypted which means that it can only be used by the person who has the decryption code. This code can be a password, a fingerprint or anything else. Of course, this virtual currency can be used to make purchases, bank transfers, but also other conventional financial transactions. It should be known that cryptocurrency can also be exchanged online for goods, services, but also real money such as euros or dollars. Platforms have been created for this purpose. The advantage of cryptocurrency lies in the fact that transactions are carried out at no cost and in total anonymity. Thus, this currency is not subject to any banking or governmental control.
Of course, it is not possible to talk about cryptocurrency without mentioning Bitcoin. Having made its appearance during the year 2009, Bitcoin is the very first cryptocurrency that was born . A real alternative to classic currencies that works then through the computer network. Bitcoin is a very safe currency and has already proven itself today. Indeed, it is necessary to know that the modification or the falsification of a transaction on the blockchain is totally impossible. Bitcoin is still a huge success with a value over $ 10,000.
The new financial eldorado
Cryptocurrencies are growing more and more every day and there are many today. It should be known that cryptocurrency is currently a digital asset very popular and very popular. Thanks to the operation via the blockchain, this virtual currency has a real value and can not be falsified. All cryptocurrencies work on the same principle, but their prices can still be different, which will allow you to choose between one or the other. Currently, there are about 1,200 different cryptocurrencies on the market as well as more than 6,000 marketplaces to exchange this virtual currency.
The advantages of cryptocurrency
Cryptocurrency has many advantages and it is for this reason that it is so successful. Indeed, we propose you to discover below the main advantages of this virtual currency:
- It is a currency independent of all banking systems;
- It is an alternative to traditional payments and promotes online commerce;
- All transactions are completely anonymous and secure;
- No counterfeiting of this currency is possible;
- The transfer of money is done very quickly, in just minutes, unlike traditional bank transfers that can take several days;
- Transfer fees are almost non-existent;
- It is possible to transfer money around the world;
- No ceiling is put in place;
- No transfer limit is in place;
- No cancellation possible for the receiver of the virtual currency, the transaction is completely irreversible;
- No intermediary in the transaction, that is to say that there is no intervention of any bank.