What are blockchain and cryptocurrency?
Whether you’re a cryptocurrency enthusiast or just looking to diversify your assets through virtual currencies, you’ve most likely heard of blockchain, the technology used by Bitcoin.
We invite you to find out in this article everything you need to know about blockchain and cryptos.
Definition of blockchain
Blockchain is a database that contains all the history of exchanges between users since its creation. Some blockchains are private, while others are public. We could compare blockchain to an accounting ledger that remains anonymous and tamper-proof.
We often talk about blockchain with cryptocurrencies such as Bitcoin, Ethereum, or Ripple. Therefore, the blockchain will ultimately allow you to exchange virtual currencies in complete security, and all information has perfect traceability.
How the blockchain works
So, let’s discover how the blockchain works. This technology will make it possible to store and transmit information in a completely transparent and secure manner. Thus, no one manages the exchanges externally.
All the exchanges are recorded, and transaction history is therefore created. Each transaction is recorded in a new block.
The blockchain is very often used for monetary transactions. It is for this reason that cryptocurrency is the most traceable and transparent currency today. However, the blockchain can also be used for scientific research.
What is cryptocurrency?
It is generated in particular by open source software and Internet users. This currency is fully encrypted, which means in particular that it can only be used by the person who holds the decryption code.
Most importantly, this virtual currency can be used to make purchases, bank transfers, and other traditional financial transactions. It should be noted that cryptocurrency can also be exchanged online for goods, services, and real money, such as euros or dollars. Platforms have also been created for this purpose.
The advantage of cryptocurrency lies in the fact that transactions are free of charge and in total anonymity. Thus, this currency is not subject to any bank or government control.
Bitcoin – The new financial eldorado
It’s impossible to talk about cryptocurrency without mentioning Bitcoin. Having made its appearance in the year 2009, Bitcoin is the very first cryptocurrency that was born. A real alternative to traditional currencies which then works thanks to the computer network.
Bitcoin, in particular, is a very secure currency that has already proved its worth. Indeed, you should know that modifying or falsifying a transaction on the blockchain is completely impossible.
To start investing and trading Bitcoin and altcoins, you should first find a crypto broker. Opening an account is quite a straightforward process. Make sure to go for reputable and trustworthy ones.
Cryptocurrencies are growing more and more every day, and there are many today. You should know that cryptocurrency is currently a very fashionable and highly prized digital asset.
Thanks to the operation via the blockchain, this virtual currency has real value and cannot be falsified. All cryptocurrencies work on the same principle, but their prices can still be different so that you can choose the one that suits your needs and expectations.