The fundamentals of cryptocurrency and how it works
In the times in which we live, technology has made incredible advances compared to any other time in the past. This evolution has redefined the life of man in almost all aspects. In fact, this evolution is a continuous process, and therefore human life on earth is constantly improving day after day. One of the latest inclusions in this regard is cryptocurrencies.
Cryptocurrency is nothing more than digital currency, which has been designed to impose security and anonymity on online monetary transactions. It uses cryptographic encryption to generate currency and verify transactions. New coins are created using a process called mining, while transactions are recorded in a public ledger, which is called the transaction blockchain.
The evolution of cryptocurrency is mainly attributed to the virtual world of the web and involves the procedure of transforming readable information into code, which is almost indecipherable. Therefore, it becomes easier to track purchases and transfers that involve the currency. Cryptography, since its introduction in World War II to ensure communication, has evolved in this digital age, mixing with mathematical theories and computer science. Therefore, it is now used to secure not only communication and information, but also money transfers via the virtual web.
How to use cryptocurrency
It is very easy for ordinary people to make use of this digital currency. You just have to follow the steps indicated below:
You need a digital wallet (obviously, to store the coin)
Use the wallet to create unique public addresses (this allows you to receive the coin)
Use public addresses to transfer funds in or out of the wallet
A cryptocurrency wallet is nothing more than a software program, which is capable of storing public and private keys. In addition to that, you can also interact with different blockchains, so that users can send and receive digital currency and also keep track of their balance.
The way digital wallets work
Unlike conventional wallets that we carry in our pockets, digital wallets do not store currency. In fact, the concept of blockchain has been so cleverly blended with cryptocurrency that coins are never stored in a particular location. Nor do they exist anywhere in cash or physical form. Only the records of your transactions are stored on the blockchain and nothing else for more visit here http://seaquake.io/
A real life example.
Suppose a friend sends you a digital currency, say in the form of bitcoin. What this friend does is transfer the ownership of the coins to his wallet address. Now when you want to use that money, you have unlocked the fund.
To unlock the fund, you need to match the private key in your wallet to the public address to which the coins are assigned. Only when both private and public addresses match, your account will be credited and the balance in your wallet will increase. Simultaneously, the balance of the sender of the digital currency will decrease. In transactions related to digital currency, the actual exchange of physical currencies never takes place under any circumstances.