Step-by-Step Guide: How to Create Your Own Cryptocurrency
Did you know, there are different forms of money? Not just real and counterfeit. Those categories were relevant in the 20th century. Now we have Cash money, digital money or money that can be accessed through online mediums, and plastic money which refers credit cards and debit cards.
But in the last decade, the whole world has seen the emergence of a new form of money. It is definitely the cryptocurrency. Cryptocurrencies or virtual currencies are digital assets which can be used as a medium for exchange. Some notable instances of cryptocurrency are Bitcoin, Dogecoin, and Dentacoin. There are many more such cryptocurrencies available online.
It is important to keep in mind that the cryptocurrency operates on the digital domain. It is not part of the daily economy. Digital currencies cannot be used in lieu of regular money. Another way to look at it is that the digital currency space is unregulated by the government.
Digital currency is ‘mined’ by users. The total value of the currency depends on user involvement and it cannot be monitored or managed by the federal government. This is what makes the cryptocurrencies volatile and risky.
The Tech Behind Cryptocurrency
The hype surrounding Bitcoin is the primary reason for a huge surge in demand for digital currencies. However, cryptocurrencies are the outcome of the technology called as ‘Blockchain’. The Blockchain is one the revolutionizing technology that has emerged since 2007. Blockchain development technology is a network-based system which records data and stores it in the form of blocks on the network. Each block has information on different aspects like:
1. User details – personal information of the users entering into the transaction. This includes name, username, IP address, personal address etc.
2. Transaction details – records of the product being transacted, the value of the transaction, quantity, and rate
3. Timestamp – The timestamp records the date and time when the block is created or accessed.
This information is contained in every block. Each block can be accessed from anywhere in the network. Since the information is decentralized and transparent, Blockchain development technology is also referred to as a ‘Distributed pubic ledger’.
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