Cryptocurrency from whatis.com
A
cryptocurrency is a digital medium of exchange that uses encryption to secure the processes involved in
generating units and conducting transactions.
Cryptocurrencies
are a subset of digital currencies and, as such, have no physical
representation. They may be used for online or in-person transactions
with any vendors who accept them. In-person transactions using
cryptocurrencies are typically conducted through mobile payment from a digital wallet.
There are
hundreds of cryptocurrencies around the world. Among them, Bitcoin
is the most prominent example -- in fact, other cryptocurrencies are sometimes
referred to as altcoins, as in alternatives to Bitcoin. The
Bitcoin protocol enables peer-to-peer (P2P) exchange in a decentralized system that,
unlike conventional currencies, is not associated with any financial
institution or government.
Bitcoin-to-Bitcoin
transactions are conducted through anonymous, heavily encrypted hash codes across a peer-to-peer
network.Each user’s digital wallet maintains their Bitcoins. The wallet also
stores all addresses the user sends and receives Bitcoins from, along with
a private key known only to the user. The P2P
network monitors and verifies Bitcoin transfers.
Other
cryptocurrencies include Litecoin, primecoin, Namecoin and Feathercoin.
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