CRYPTOCURRENCY - Digital Money
Digital money is stored in your personal electronic wallet . Security is closed with a complex password and, if the password is stored correctly, hacking is impossible. All digital money is stored on its own cryptocurrency blockchain. Each digital coin is owned in a personal wallet. Transfers are carried out without third parties, directly between the owners' wallets, with a minimum commission for forming a block with information about the transfer. Digital money is eternal and its own. Conclusion, the owner of money is a person, the owner of a digital coin.
The help in this is blockchain technology .
Cryptocurrency is information about changes in balances on users' wallets, stored in the blockchain distributed ledger.
A cryptocurrency wallet is a private key for encrypting and decrypting information in the Blockchain database.
Owning a cryptocurrency is direct access to the encrypted Blockchain database directly, without intermediaries, in the form of services providing two-factor authentication or remote generation of private keys.
You are the owner of the cryptocurrency if you have access to the Blockchain through your private key, without intermediaries.
Blockchain is an encrypted database that stores information about changes in the balances of cryptocurrency users.
How to remove third-party access to the wallet balance database and the digital money operation codes themselves. The development of blockchain technology coped with this task. All databases are stored on many different computers independently of each other. Hundreds of thousands or tens of people install a program on a personal computer, a node storing the data of all people connected by the Internet system. Several participants form a new transaction block, store this information and cannot be changed. When unauthorized hacking and data changes in any computer, in the blockchain program, other nodes with information block this hacking by recognizing the changes. This is the protection of the people themselves, without third parties.
A blockchain can be removed when everyone simultaneously removes the node's blockchain program from their computer in one second. If there is one left, then he will store this information and everything will continue, his followers will download the base and make the next node. But the fact is that no one will delete, everyone on the wallets tied to the node keeps their digital money and everyone does not know each other!
You can consider yourself the owner of a cryptocurrency only if you personally contact the Blockchain without intermediaries.
Blockchain - Decentralization in cryptocurrency is the storage of the Blockchain database on multiple computers of users, with the synchronous exchange and fixation of information about the changes made on the nodes (nodes) connected to a common network.
DECENTRALIZATION OF CRYPTOCURRENCIES
Decentralization is when you store cryptocurrency in your personal wallet, which is on your computer or smartphone in your every second access, and balance and interest! And you don't expect anything from anyone. At any time, you can use your interest and balance, exchange it at the stock exchange, in the exchange office, buy goods, pay for a service, donate, send help, etc.
There is no center, no server, no master. This is the storage of a database on many personal computers of users, with a synchronous exchange and fixation of information about the changes made on the nodes-nodes connected to the general Blockchain network.
There is nothing that can be destroyed, taken away, squeezed out, closed, turned off!
And there is a software cryptographic code on the blockchain Internet and we are users.
And this is called complete DECENTRALIZATION WHAT DOES
THE GROWTH OF CRYPTOCURRENCY COME FROM?
Any cryptocurrency is created as a payment system for people. And the growth in price depends on how people use it. When many people buy it, it grows! When they sell, prices go down! The entire collection of information is analyzed by the official world exchanges , in which each cryptocurrency takes its place in terms of importance among cryptocurrencies.
The liquidity of the cryptocurrency shows its presence on the exchange.
Legality, shows "Registration number" and "Certificate of registration"
Mining is when you receive a reward in the form of a coin for participating in its creation. The extraction of coins as such is obtained. New mined coins are distributed among the holders of nodes in the blockchain. Everyone fulfills the mining conditions, but not everyone gets it. Why?
There are two types of mining.
Proof-of-Worke (angl.Worke - work)
proof of performance Proof-of-Worke
deserves to form a block and get a new coin miner whose computer chooses a formula that does not solve anything in the system. Whoever decided, that and a new coin. For example, the Bitcoin cryptocurrencyover time, there were a lot of miners and the formula was complicated, to solve it, more powerful equipment was needed. Now farms the size of a huge factory decide the formula. And the first to receive those from whom the equipment is more powerful.
To mine in this way you need a lot of electricity, in a huge amount. Now there are most of the farms in the Sunny countries, and their electricity is coal-fired. The ecology is deteriorating. Now there are about 3,000 cryptocurrencies in the world and when everything is mined in full, the ecology of the Earth will be under threat. We decided to create a new environmentally friendly system and a second type of mining appeared.
Proof-of-Stake (English Stake - rate)
Proof of rate, share of ownership Proof-of-Stake
Now they are distributing the new coin among those who have the largest share of the cryptocurrency in their personal wallet. The question is brewing, now mining is not available for miners with a small balance. So the answer is "Available".