For us steemians to understand how a cryptocurrency works is fundamental, since we work with them.

¡Greetings, friends!

All of us at Steemit know that the way to obtain income is through cryptocurrencies, in our case STEEM, But how many of us know how they work and why is it that although we do not have them in physical, they have a value? I'll solve those doubts in this post, through a very simple explanation of how a cryptocurrency works.

First we must understand that the way in which a currency (whatever it is) obtains its value is by the importance it has in the market, that is, the more people want to have that currency in their possession, the higher its price, the opposite if nobody wants it, its price will be very low.

A cryptocurrency is nothing more than an encrypted currency, that is, protected by passwords, which allows them to be very secure. Another of its great advantages is that it does not require the intervention of a bank to make transactions with it, which in turn is not controlled by any government.

This type of currency uses the blockchain system, that is, a decentralized currency exchange system, in order to make these transactions, blocks are exchanged with a single coding, that is, a number that is not repeated in any other block. Once this transaction is made, all the data is recorded in the blockchain, which is visible to any user who wants to see it. Each person can obtain a cryptocurrency purse, which like the transactions is registered with a unique code in the blockchain, through this we can make transactions with other people around the world.

Why hackers can not violate and modify the blockchain?

This is because this system is monitored by thousands of people around the world, all with an instant copy of each of the transactions that occur in it, which is why although some hacker will manage to modify a transaction using a computer , it would automatically be discovered, since the other thousands of computers are instantly monitoring the same chain of blocks, which makes it almost impossible to make any changes without anyone noticing. All these people who monitor this system are called "miners", which are responsible for verifying that each transaction is correct. Each of these "miners" is rewarded with some cryptocurrencies from time to time, depending on the number of transactions that they verify, all conditioned by the quality of the equipment they have put to work.

Why does the value of them increase and decrease?

The more people want to have them, the more they will be worth.

Fuente

This is mainly due to the fact that its value is based on supply and demand, in addition to the number of transactions carried out with it, that is why the more people make transactions with the currency, the higher its price will rise, however when the demand for a cryptocurrency is small, its value will go down. Remember that they are virtual currencies and we give the value ourselves, if people lose interest in the currency and stop using it, its value will be reduced.

I hope your post has been helpful.

¡Until next time!