In today's technology world, cryptocurrency is a term that is becoming more and more popular every day.
For some People this may sound like the technology of the future, but the truth is that blockchain technology and crypto coins have revolutionized the way we store and transfer money.
Whenever a new technology is introduced they are intangible before becoming common such as ATMs, mobile check deposits, digital wallets, Venmo, robot vacuums and Alexa etc.
A cryptocurrency is a type of digital or virtual currency that usually only exists electronically. Cryptocurrencies are created using cryptographic techniques.
Cryptographic techniques make it nearly impossible to counterfeit or double spend. They are generally not issued or intervened by any central authority.
Cryptocurrencies are created through a mining process. Mining does not mean digging gold, but solving cryptographic problems.
It is a complex process that requires solving certain mathematical puzzles on a specially equipped computer system.
According to analysts, there are two methods of mining cryptocurrencies which are known as proof of work and proof of stake.
Proof-of-work mining methods involve specialized computers, known as mining rigs, that compete first to solve complex mathematical problems called hashes.
Given the serious environmental impacts, alternative cryptocurrencies have switched or are in the process of switching to alternative verification methods, such as proof of stake.