What is cryptocurrency?
Cryptocurrency is digital money. It can be used just like any other type of money you control, except for the fact that this money exists solely on hardware like your phone or computer. Because it is a new emerging technology, cryptocurrency like Bitcoin – is not yet accepted in all places. Increasing usage is starting to change this rapidly. Advantages to using crypto are low transaction fees, use without entering sensitive financial data, and permanently entered transactions on the blockchain.
What is a blockchain?
The blockchain is a digital ledger made up of blocks of data that typically store transaction information. These transactions recorded are verified across a large peer-to-peer network. Computers (called a nodes) verify that requested transactions are valid, and combine several to form a block of data. Other computers on the network also verify the transaction, and the block gets added to the blockchain. Every single node on the network has a copy of this chain, and every copy of the blockchain is verified to be exactly the same. This is important because it prevents counterfeit. Since the blockchain is stored on every single node, nobody can go into their own copy and edit the transaction history. This makes the blockchain decentralized – meaning no single organization or person holds the ledger, so the system can’t be cheated. The blockchain is held by every single computer on the network to ensure fair exchange.