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Digital currency or (cryptocurrency) is a phenomenon that is quite interesting, especially Bitcoin. The value shot quickly to hundreds of millions of rupiah per 1 BTC. Therefore, many people flocked to seek luck through this transaction of digital currency trading.

Bitcoin is not the only currency of cryptocurrency in circulation. In many parts of the world, these digital currencies are considered valid in transactions.

Then what and how exactly the ins and outs of cryptocurrency? When was the first time he appeared and how was he accepted? To be more familiar, as written in Swara Tunaiku, consider the following
explanation.

Know the origin of cryptocurrency

Bitcoin was discovered by accident (Satoshi Nakamoto). Through a peer-to-peer network without a server (cryptocurrency), Nakanomo discovers a decentralized digital cash system.

This system then became an important discovery in realizing the digital currency. In addition, Nakamoto's previous efforts have always failed because of using a centralized system.

Short of data, you need a network of payments with accounts, balance sheets, and transactions to realize this currency. The main problem is how do you prevent double spending which means there is one same entity sent to two different places at the same time. Satoshi found a solution to the problem with the system he created.

How cryptocurrency works

Suppose you get Bitcoin from a friend, which transactions will be broadcast into the network via a peer-to-peer system that is formed on many computers, known as nodes. Each node verifies the transaction via an algorithm.

After the verification process is complete, the system then merges with other transactions to form a data block. Then, this data block is added to the pre-existing blockchain and makes the transaction permanent. After that, Bitcoin arrives to you. Although it sounds complicated, it actually happens in real time.

Get to know the miner

People are familiar with the terminology of digital or minerals in the world of cryptocurrency. In fact, miner has an important role in networking.

The peer-to-peer system allows each transaction to be confirmed by a peer. At this point the miner has the task of confirming the transaction. After that, the miners get reward in the form of cryptocurrency.

Miner jobs

In order to receive confirmation and be able to receive digital money, a miner must be able to complete cryptographic puzzles. The goal is to add blocks of data to the existing blockchain. That is the reason why digital coins are named CRYPTOcurrency. Because, the security system involves cryptography based on mathematics.

Characteristics of cryptocurrency

Below is the transactional character of cryptocurrency.

• Can not be reversed

After the confirmation, a transaction is irreversible. Therefore, you must be careful not to miscast.

• Anonymity

Transactions and accounts do not parallel with real-world identity. When you register, you are not required to include a KTP. Transactions can still be traced, but not to the source.

• Global and fast

Transactions happen instantaneously. Confirmation was only in minutes. Location does not specify.

• Safe

This system is almost impossible to break down. Because, the fund cryptocurrency itself is stored in a system equipped with public cryptography locking. Only you or the owner of a private key can access and send your digital coins.

• No permission required

You are free to use cryptocurrency. No party forbids you.

While the monetary characteristics of cryptocurrency are:

• Controlled inventory

The number of coins is limited by most cryptocurrencies. For example, Bitcoin, which is limited to a total of 21 million. All cryptocurrencies control inventory through a written schedule in code form. If you know the formula, you can easily estimate the amount.

• Not a debt

Cryptocurrency is like gold. He represents himself. Unlike the money stored in your wallet. If you think about it, your money is like a bond with state guarantees based on the nominal value. That's what you need to understand about this digital asset. In Indonesia, digital money as a means of payment does not apply because it is prohibited by the government. However, you are not prohibited to make it a digital asset.