What is Cryptocurrency
you'll have a hard time finding a major bank accounting firm software company or government that hasn't researched crypo.
currencies or started a blockchain project beyond the noise in the press releases many people often fail to understand the basic concepts so let's walk through the whole story what are crypto currencies Satoshi invented Bitcoin in 2008 as a peer-to-peer electronic cash system to realize digital cash you need a payment
network with accounts balances and transactions that's easy to understand one major problem every payment network has to solve is to prevent double spending that is to prevent one entity from spending the same amount twice usually this is done by a central server who keeps records of all the balances in a decentralized network you don't have this server so you need every single entity of the network to do this job every peer in the network needs to have
a full list with all the transactions to check if future transactions are valid or an attempt to double spend but how can these entities keep it consensus about these records if the peers on the network disagree about one single minor balance everything breaks they need absolute consensus nobody knew how to achieve this until Sato she proved it was possible cryptocurrencies are a key part of the solution to illustrate this we'll look at the transactions on the network the transaction is a file that says Bob gives X Bitcoin to Alice and assigned digitally by Bob once signed the transaction is broadcasted to the network sent from one peer to every other peer this is standard p2p technology nothing special happening here after a specific amount of time the transaction gets confirmed only miners can confirm transactions this is their job in a cryptocurrency network they take transactions stamp them as legitimate and spread them in the network after a transaction is confirmed by a miner every node has to add it to its database
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