Getting to Know How Crypto Works
Teknoto.Net - The development of digital currency is currently growing rapidly. One of the digital currencies that were first discovered was Bitcoin. While Bitcoin itself is a digital currency or also known as cryptocurrency.
Today's cryptocurrencies have reached thousands and are increasing every day. Bitcoin itself is a currency technology that was created. Meanwhile, other currencies besides Bitcoin are also known as altcoins.
It is these altcoins that number in the thousands today. However, for those of you who are still beginners in the field of digital currency on this one, of course, you are still confused about how Bitcoin or other cryptocurrencies work. And to know this, then you need to read the review below to the end.
|The development of digital currency is currently growing rapidly. One of the digital currencies that were first discovered was Bitcoin. While Bitcoin itself is a digital currency or also known as cryptocurrency.|
How Does Crypto Work You Need to Know?
The digital currency here has its digital wallet. For example, for Bitcoin currency, you can find a digital wallet for Bitcoin known as Bitcoin Wallet.
When you deposit money in a bank, your password and account will be managed by the bank. So that when you forget your password, you can contact the bank to ask for your password.
The system has a weakness, where the weakness is that if there are hackers who can break into the bank system, then they will later have access to all accounts. This is of course different from Bitcoin. When you enter the Bitcoin network, you will get a wallet address and a password later.
Only you know the address and password and you must record it and keep it yourself. That's because the address and password only appear once in a lifetime and you can't change them.
If you forget later, your digital currency will no longer be able to be used. This is what can make digital currency indeed feel much safer when compared to fiat currency.
This decentralized system works by using a ledger. While the ledger itself is a notebook in which its contents record every transaction that has been made. This ledger will later be tasked with recording and witnessing the ongoing transaction process. But here this ledger does not function to control the course of transactions.
The cryptocurrency is formed from 2 words, namely correction and krypton. The word crypto is taken from cryptography, which is a system that protects information or communication by creating a code as a key. And here it can only be opened by people who know the key.
In the crypto transaction itself, each person who makes the transaction has two keys. These keys include the public key and the private key. If you use these keys together, it will form a digital signature or digital signature.
The digital signature can be proof that you are the rightful owner. However, this method is not considered safe enough, so this is where the ledger can function. And the ledger here will act as a witness and also at the same time to verify that the transactions made are legitimate.
Well, that's a little information that can be explained about how the crypto itself works. For those of you who don't understand this, you need to read the reviews above.
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