Cryptocurrencies are digital means of financial exchange that are created, used, and managed by private individuals or groups. As most of the cryptocurrencies are not regulated or controlled by the national government, they are considered as alternate currencies that dwell outside the realms of the state’s monetary boundaries. Bitcoin is the first and the most popular cryptocurrency that has shown the way to more than fifteen hundred counterparts.

Cryptocurrencies use cryptography to encrypt sensitive data transfers and to secure the crypto units. They also mask the identities of the users by making the transaction pseudonymous. They don’t have any central control and are termed as decentralized currencies. Their supply and value are controlled by complex algorithms and the activities of the users.

Cryptocurrencies are free from the decisions and regulations of central banks or authorities.

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Some specific users called ‘miners’ are the most fundamental part of the cryptocurrency network as they put to use a vast amount of computational power to validate and record the transaction for which they are rewarded with newly created coins and they also receive the transaction fees paid by the users. They are the ones who are critical to the smooth, stable, and effective function of the crypto network.

Cryptocurrency exchanges are special online marketing places where cryptocurrencies can be exchanged for fiat currencies. Another interesting thing to note is that most, but not all, cryptocurrencies are conceived in such a way that the total amount of their units that will ever be available is finite. Hence over time, it will become more and more difficult for the miners to procure more of the dwindling cryptocurrencies. This characteristic makes cryptocurrencies inherently deflationary.

The source codes and the technical aspects of the cryptocurrencies are very complex but a layman can still understand its basic concepts and be an active user. Apart from the major technological underpinning which is the blockchain, several other concepts govern the security, values, and inner functioning of the cryptocurrencies.

Functionally, most of the cryptocurrencies are variants of bitcoin which is the pioneer cryptocurrency. Like traditional currencies, the cryptocurrencies are also expressed in units. The master ledger that records all the transactional data of a particular cryptocurrency and validates the ownership of all its units at a given point in time is called a blockchain. Identical copies of the blockchain are stored in every node of the crypto network where they are continually updated and authenticated. Nodes are basically decentralized servers run by tech-savvy individuals or groups of individuals who are referred to as miners.

A cryptocurrency transaction is not finalized until it is appended to the blockchain.  This usually happens within minutes and once finalized, the record is irreversible. Every cryptocurrency user has a private key that authenticates their identity and enables them to exchange units. Without the key, the holder can’t transact with their cryptocurrency.

Cryptocurrency users have ‘wallets’ with unique information that authenticates them as the temporary owners of their units. Whereas private keys confirm the authenticity of a cryptocurrency transaction, wallets reduce the risk of theft for units that aren’t being used.

Women In Cryptocurrency

Our friends at MrBtc.org developed an interesting infographic on the most popular women in Cryptocurrency Titled – Top 8 Women In Cryptocurrency. This infographic is about Crypto women and their achievements.