What is a cryptocurrency?

A cryptocurrency is a unit of digital medium of exchange, which is designed to operate as a medium of exchange using cryptography. This secures transactions and controls the creation of additional units of currency. Cryptocurrencies are classified as a subset of digital currencies and are also classified as a subset of alternative currencies and virtual currencies.

The first decentralized cryptocurrency, bitcoin, was created in 2009 by developer Satoshi Nakamoto. Since then, many other cryptocurrencies have been created. These are often referred to as altcoins, as a combination of alternative currencies.

What is Blockchain?

The blockchain is a public ledger that records bitcoin transactions. A novel solution achieves this without any trusted central authority: the blockchain is maintained by a network of communication nodes running bitcoin software. Transactions in the form of payer X sending Y bitcoins to payee Z are transmitted to this network using readily available software applications. Network nodes can validate transactions, add them to their copy of the ledger and then transmit these ledger additions to other nodes. The blockchain is a distributed database: to achieve chain-independent verification of ownership of each and every bitcoin amount, each network node stores its own copy of the blockchain.

A network of communicating nodes running bitcoin software maintains the blockchain. A full copy of the blockchain is always available to the public and nodes can verify the validity of transactions.

What is a Bitcoin cryptocurrency?

It is a payment and cryptocurrency system with no central bank or single administrator. In principle, Bitcoin users can transfer money to each other over a peer-to-peer network using free and open source software. Transactions are verified and cryptographically protected by a decentralized network of volunteer nodes that record account history in a public database called the blockchain and prevent double spending or counterfeiting. This work is called Bitcoin mining.

It was conceived in 2008 by an entity under the pseudonym Satoshi Nakamoto, whose exact identity is unknown. Satoshi Nakamoto worked with other volunteer developers on the source code of the reference application until December 2010. When he decided to end his public activities and leave its development to the community.
As an unprecedented financial phenomenon, economists widely disagree about the real value and long-term stability of cryptocurrencies.
However, the adoption of Bitcoin to purchase goods, services and even other currencies is on the rise.

Programmer forgot his password and would lose 4 billion pesos in bitcoins.(Opens in a new browser tab)