Cryptocurrencies What are Cryptocurrencies?
Cryptocurrencies are digital currencies that are encrypted by a special system. Encryption of these currencies depends on a complex set of sciences, most notably mathematics, to make communications protected, encrypted and completely secure.
Crypto currencies are safer to trade than digital currencies because they rely on a very complex encryption system that can not be easily hacked. This system encrypts data, making it difficult to change any information of any kind. This currency is closely related to the encrypted internet such as encrypted e-mail. This type of currency has emerged after a lot of dealing with digital currencies on the Internet, which led to the spread of hackers, who can steal digital money. However, the system of crypto currencies is difficult to penetrate, and it protects all the information, communications, and money that are traded over the Internet.
The Importance of Cryptocurrencies
Bitcoin, which appeared in 2009, is the first crypto currency to appear in the world. Bitcoin is the most famous and the most valuable crypto currency currently used. Today there are a very large number of crypto currencies. By 2018, there had been more than 1000 crypto currencies traded on the Internet.
Crypto currenciesare very important because they allow their users to store money and make payments in a safe and simple way. A person does not need to go to banks and waste time to transfer or store money. These currencies are recorded in the general bond book, which stores all user transactions and all conversions a user has made since he first used crypto currencies.
The Way Cryptocurrencies Work
Crypto currencies are createdthrough a process called mining. The mining process is a complex process that depends primarily on the use of computers to solve a set of complex mathematical algorithms. These algorithms eventually generate the value of Bitcoin or any crypto currencies, and this value equals money. Then generated crypto currencies are kept encrypted or sent through an encrypted wallet called Blockchain.
The Most Important Differences Between Digital Currencies and Cryptocurrencies
There are a wide range of differences between digital and crypto currencies, the most important of which are: Crypto currencies are more secure than digital currencies. Crypto currencies can only be seen through currency providers, unlike digital currencies that are available to everyone. Everyone can see digital currencies because the revenue sources are placed in a general chain.
No need for information: Crypto currencies don’t need a lot of information like digital currencies. Digital currencies need a lot of papers and documents that reveal the identity of the person, his full name, addresses, his personal image, and some papers and documents issued by the public authorities.
Structure: Crypto currencies are decentralized and unaffected by anyone but fully dependent on the use of computer technology, whereas digital currencies are central and rely on computer technology as well as individuals.
Subjection to laws : Crypto currencies are not subject to any laws or authorities, nor do they rely on any intermediaries to deal with, whereas digital currencies are subject to laws and authorities and can only be operated through intermediaries.
The Most Important and Most Common Digital Currency
Bitcoin: It appeared in 2009, and is the first crypto currency used in the world. It was developed by Satoshi Nakamoto, and is the most valuable Crypto currencies. Its value has become more than93billion dollars by2018.
Bitcoin Cash: It appeared in 2017, and is a branch currency of the original Bitcoin. It has been used heavily because it speeds up transactions and conversions, and its value has reached5 billion dollars.Billion dollar.
Ethereum: It is one of the encrypted digital currencies that are heavily used and worth about29billion dollars in 2017. It first appeared in 2015.
Litecoin: It is one of the most traded currencies after the Bitcoin and worth about 3 billion dollars.