Carl Freer A cryptocurrency (or crypto money) is a digital asset designed to work as a medium of exchange which uses cryptography to secure its transactions, to restrain the production of additional components, and to verify the transfer of assets. Cryptocurrencies are a type of digital currencies, alternate currencies and digital currencies. Cryptocurrencies use decentralized control as opposed to centralized electronic money and central banking methods. The decentralized management of every cryptocurrency works through a blockchain, which is a public transaction database, working as a dispersed ledger. Bitcoin, born in 2009, was the first decentralized cryptocurrency. Since then, numerous other cryptocurrencies have been created. These are often called altcoins, as a blend of alternate coin. Decentralized cryptocurrency is produced by the entire cryptocurrency system jointly, at a rate that's defined when the machine is created and which is known. In centralized banking and economic systems like the Federal Reserve System, company boards or authorities control the source of money by printing components of fiat currency or demanding additions to electronic banking ledgers. In case of decentralized cryptocurrency, businesses or authorities cannot produce new components, and have not so far provided financing for some other businesses, banks or corporate entities which hold asset value quantified inside. The underlying technical system upon which decentralized cryptocurrencies have been based was generated by the group or person known as Satoshi Nakamoto. As of September 2017, more than a thousand cryptocurrency specifications exist; many are very similar to and derive from the very first completely executed decentralized cryptocurrency, bitcoin. Within cryptocurrency systems the safety, integrity and balance of ledgers is maintained by a community of mutually distrustful parties referred to as miners: members of the public utilizing their computers to help confirm and timestamp transactions, adding them to the ledger in accordance with a certain timestamping scheme. Miners have a fiscal incentive to keep the safety of a cryptocurrency ledger. Many cryptocurrencies are made to gradually decrease production of currency, placing an ultimate cap on the total amount of money that will ever be in flow, mimicking precious metals. Compared with normal currencies held by financial institutions or kept as money on hand, cryptocurrencies can be more difficult for seizure by law enforcement. This difficulty is derived from leveraging cryptographic technologies. Carl Johan Freer
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May 2018
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