What are cryptocurrencies?
Cryptocurrencies are digital assets designed to work as a medium of exchange that uses strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets. It is important to note that cryptocurrencies use decentralized control unlike centralized digital currencies and banking systems.
The decentralized control of each cryptocurrency works through distributed ledger technology, usually a blockchain, that serves as a public database of financial transactions.
This distributed ledger, is a consensus of digital data replicated, shared, synchronized, and distributed geographically across multiple sites, countries or institutions. There is no central administrator or centralized data storage.
A blockchain is a growing list of records, called blocks, that are linked using cryptography. Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data.
The first decentralized cryptocurrency, is Bitcoin, and was created in 2009 by a developer under the pseudonym Satoshi Nakamoto, the smallest unit of this cryptocurrency is the satoshi, this is equivalent to 0.00000001 BTC. There are currently thousands of cryptocurrencies, each focused on its own philosophy.
There are many means to acquire cryptocurrencies, currency exchange platforms are the most popular medium. There is also cryptocurrency mining, which is a practice where rewards are offered in exchange for the use of hardware for transaction validation and block generation. There are also faucets, which offer a small reward in return for completing a task.
Finally you can start accepting cryptocurrencies as payment method.
At Talk’nTrade, we are developing a platform for the acquisition of cryptocurrencies as payment in exchange for products or services. If you wish, you can check it out.