What Is Cryptocurrency

{Exactly|Specifically|Accurately} what is cryptocurrency: 21st-century unicorn - or the money of the future?

This introduction explains {the most crucial|the main} thing about cryptocurrencies. Following you've read it, {you will|likely to|you are going to} know more about it than most other humans.

Today cryptocurrencies (Buy Crypto) {have grown to be|are becoming|are getting to be} a global {trend|sensation|happening} known to most people. While still somehow nerdy and not understood by most people, banks, {government authorities|authorities} and many companies are aware of its importance.

In 2016, {considerably more .|you will find a} hard time finding a major bank, {a large|a huge|a major} accounting {company|organization}, a prominent software company or a government that would not research cryptocurrencies, publish a paper about it or start a so-called blockchain-project.

thomas-carper-us-senator-bitcoin

"Virtual currencies, perhaps most {particularly|remarkably|especially} Bitcoin, have captured the imagination of some, {hit|minted|arranged} fear {amongst others|and others|and the like}, and {puzzled|baffled|mixed up} the heck out of the rest of all of us. " - Thomas Carper, US-Senator

But beyond the noise and the press releases the overwhelming {vast majority|the greater part|bulk} {of individuals|of men and women|of folks} - even {brokers|lenders}, consultants, scientists, and {designers|programmers|builders} - {possess a|have got a} limited knowledge about cryptocurrencies. {They frequently are|They generally are|They often times are} unsuccessful to even understand the basic concepts.

So {a few|discussing|why don't we} walk through the {entire|total|full} story. {Exactly what are|Precisely what are|Exactly what} cryptocurrencies?

{Exactly where|Wherever|In which} did cryptocurrency originate?
{So why|How come|For what reason} should you learn about cryptocurrency?
And what do you need to know about cryptocurrency?

What is cryptocurrency {and exactly how|and just how} cryptocurrencies {surfaced|appeared|come about} as a side product of digital cash

{Couple of|Handful of} people know, but cryptocurrencies emerged as {a part|an aspect|an area} product of another {technology|advent|new technology}. Satoshi Nakamoto, the {mystery|a mystery} inventor of Bitcoin, the first and still {most significant|most crucial|most critical} cryptocurrency, never intended to invent a currency.

In his announcement of Bitcoin in late 2008, Satoshi said he developed "A Peer-to-Peer Electronic Cash Program. "

His goal was to invent something; many people failed to create before digital cash.

{Launching|Saying|Asserting} the first release of Bitcoin, a new {digital|electric|electronic digital} cash system that uses a peer-to-peer network to prevent double-spending. It's completely decentralized with no {machine|storage space|hardware} or {main|key|core} authority. - Satoshi Nakamoto, 09 January 2009, announcing Bitcoin on SourceForge.

The single most important part of Satoshi's invention was that this individual found a way to build a decentralized digital cash system. In the nineties, there have recently been many attempts {to produce|to develop} digital money, {however they|nevertheless they|nonetheless they} all failed.

... after more than a decade of failed {Reliable|Trustworthy|Dependable} Third Party based systems (Digicash, etc), they see it as a lost cause. I hope they can make the {variation|differentiation|difference}, that this is the first time I know of that we're {wanting|struggling|looking} a non-trust based system. - Satoshi Nakamoto in an E-Mail to Dustin Trammell

After seeing all the centralized attempts are unsuccessful, Satoshi tried to build a digital cash system without {a main|a key|a core} entity. {Want|Love} a Peer-to-Peer network for file sharing.

This decision became the birth of cryptocurrency. These are the missing piece Satoshi found to realize digital cash. {The key reason why is|Exactly why is|The main reason is} {a little|a lttle bit|somewhat} technical and complex, but if you {have it|obtain it}, you'll know more about cryptocurrencies than most people do. Therefore, {a few|discussing|why don't we} try to make it as easy as possible:

To realize digital cash you {require a|have to have a|desire a} payment network with accounts, balances, and transaction. That's easy to understand. One major problem every payment network has to solve is {to avoid|to stop|in order to avoid} the so-called double spending: to prevent that one entity spends the same amount twice. Usually, this is done by {a main|a key|a core} server who keeps record about the balances.

Found in a decentralized network, you don't have this {machine|storage space|hardware}. So you need every single entity of the network {to get this done|to achieve this|to accomplish this} job. {Every single|Just about every} peer in the networking needs to have a list with all {deals|orders|ventures} to see if future transactions are valid or an attempt to {dual|twice} spend.

But how can these entities keep a consensus about this {information|data|documents}?

If the peers of the network disagree about only one single, {small|slight} balance, everything is {damaged|busted|cracked}. They need an {complete|total|overall} consensus. Usually, you take, again, {a main|a key|a core} authority to declare {the right|the proper|the best} state of balances. But how can you achieve consensus without {a main|a key|a core} authority?

Nobody {do|performed|would} know until Satoshi {surfaced|appeared|come about} out of nowhere. {In fact|Truly|Basically} nobody believed it was even possible.

Satoshi {demonstrated|proven|turned out} it was. His major innovation was to achieve consensus without {a main|a key|a core} {expert|specialist|power}. Cryptocurrencies are a part of this solution - the part that made the solution thrilling, {interesting|exciting|amazing} and helped it to roll over the world.