The Complete Digital Money Guide You Must Know
Digital currency or cryptocurrency is a pretty catchy phenomenon, especially Bitcoin. The value shot quickly to hundreds of millions of rupiah per 1 BTC. Therefore, many people flocked to seek luck through the transaction of buying and selling digital currency.
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 found by accident by 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.
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 work
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.