What is Cryptocurrency? The word “crypto” comes from the Greek word meaning “hidden”; “crypt” translates to “hiding place”. These form a private, hidden and secure currency. Cryptocurrency is a decentralized currency that uses peer-to-peer technology, which allows all functions such as currency issuance, transaction processing and verification to be carried out collectively by the network. Cryptocurrencies are highly secure electronic currencies that operate on blockchain technology. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get the original essay Origin: Despite the technology's origins dating back to the 1980s, cryptocurrencies as we know them are a relatively new development. Bitcoin only dates back to 2008, when Satoshi Nakamoto (whose identity remains unknown) unveiled a white paper outlining its early principles, combining decentralized control, user anonymity and record-keeping on the blockchain. In 2009, Satoshi launched Bitcoin and a small group of enthusiasts began trading the currency. From that point on, cryptocurrencies and alternative exchanges emerged, and a few merchants began accepting digital currencies. Why is this concept necessary? Founded in 2009, Bitcoin (the first cryptocurrency) was born from the idea of ​​creating a currency independent of any other authority, instantly electronically transferable and with low transaction fees. Every coin, transaction and person involved receives a code. Cryptocurrencies involve layers of encryption on top of each other, making them anonymous, secure and unique. Each layer is stored infinitely on a distributed master ledger, the blockchain, and each cryptocurrency holder has a key that authenticates their identity, allowing them to buy and sell. Why did it go viral? Since its inception, cryptocurrency (particularly Bitcoin) has increased in value exponentially, particularly in 2016 and 2017, as more and more people began to accept cryptocurrency as a credible form of money and not only as a buzzword for tech insiders. The growth of Bitcoin can be attributed to a number of factors. First, the cryptocurrency model itself allows project developers to bypass banks in order to raise funds. For retailers, there is the benefit of being able to expand into new markets. This generates lower net fees, reduced administrative costs and broader reach into previously inaccessible markets. How it works: A Bitcoin wallet contains the Bitcoin address, which keeps track of all our transactions, and therefore the details of our total balance. . This address is also called a “public key” and is made available to everyone. Each address/public key has a corresponding “private key”. This is private and it is crucial that we keep it secret and secure. The two keys are related, but there is no way to distinguish the private key from the public key. Any transaction issued from our Bitcoin address must be “signed” with our private key. To do this, we insert both the private key and the transaction details (how many bitcoins we want to send and to whom) into the Bitcoin software on our computer or smartphone. With this information, the program generates a digital signature, which is sent to the network for validation. This transaction can be validated by confirming that we own the bitcoin and are transferring it to someone, and that..