In the times that we're living in, technology has made unbelievable advancement as compared to any time in the past. This evolution ...
In the times that we're living in, technology has made
unbelievable advancement as compared to any time in the past. This evolution
has redefined the life of man in almost every aspect. This evolution is an
ongoing process, and thus, human being on earth is continuously improving day
in and day out. One of the latest inclusions in this aspect is
cryptocurrencies.
Cryptocurrency is nothing but digital currency, which has
been designed to impose security and anonymity in online monetary transactions.
It uses cryptographic encryption to both generate money and verify
transactions. The new coins are created by a process called mining, whereas the
transactions are recorded in a public ledger, which is called the Transaction
BlockChain.
Little backtrack
The evolution of cryptocurrency is mainly attributed to the
virtual world of the web and involves the procedure of transforming legible
information into a code, which is almost uncrackable. Thus, it becomes easier
to track purchases and transfers involving the currency. Cryptography, since
its introduction in WWII to secure communication, has evolved in this digital
age, blending with mathematical theories and computer science. Thus, it is now
used to ensure not only connection and information but also money transfers
across the virtual web.
How to use cryptocurrency
It is effortless for ordinary people to make use of this
digital currency. Just follow the steps given below:
·
You need a digital wallet (obviously, to store
the currency)
·
Make use of the portfolio to create unique
public addresses (this enables you to receive the money)
·
Use the public addresses to transfer funds in or
out of the wallet
Cryptocurrency wallets
A cryptocurrency wallet is nothing else than a software
program, which is capable of storing both private and public keys. How to buy xrp
online in 2019? In addition to that, it can also interact with
different blockchains, so that the users can send and receive digital currency
and also keep a track on their balance.
The way the digital wallets work
In contrast to the conventional wallets that we carry in our
pockets, digital wallets do not store currency. The concept of blockchain has
been so smartly blended with cryptocurrency that the coins never get stored at
a particular location. Nor do they exist anywhere in hard cash or physical
form. Only the records of your transactions are stored in the blockchain and
nothing else.
A real-life example
Suppose a friend sends you some digital currency, say in the
form of bitcoin. What this friend does is transfers the ownership of the coins
to the address of your wallet. Now, when you want to use that money, you've
unlocked the fund.
To unlock the fund, you need to match the private key in
your wallet with the public address that the coins are assigned to. Only when
both these private and public addresses match, your account will be credited,
and the balance in your wallet will swell. Simultaneously, the balance of the
sender of the digital currency will decrease. In transactions related to the
digital currency, the actual exchange of physical coins never takes place at
any instance.
Understanding the cryptocurrency address
By nature, it is a public address with a unique string of
characters. This enables a user or owner of a digital wallet to receive
cryptocurrency from others. Each public address that is generated has a
matching private address. This automatic match proves or establishes the
ownership of a public address. As a more practical analogy, you may consider a
public cryptocurrency address as your eMail address to which others can send
emails. The emails are the currency that people send you.
Understanding the latest version of the technology, in the
form of cryptocurrency is not tight. One needs a little interest and spend time
on the net to get the basics clear.
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