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What is Crypto? How Cryptocurrency is created?

Nishita Masih by Nishita Masih
1 year ago
Reading Time: 1 min read
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Cryptocurrency: Crypto means a person who secretly belongs to a party or group, not openly declared. Crypto currency is a virtual currency or digital currency that is secured by cryptography, which makes it nearly impossible to counterfeit. Many cryptocurrencies are decentralized networks based on block chain technology – a distributed ledger enforced by
disparate network of computers.

Cryptocurrency is produced by public network rather than any government that uses cryptography to make sure payments are sent and received safely. Every crypto currency
has a unique code or serial number. Each and every transaction is verified through an electronic distributed ledger called the block chain.

What is Crypto
Crypto

How Cryptocurrency is Created?

Crypto currency or Crypto coins can be created depends on what is defined by a provided crypto currency, code. The process of creating cryptocurrency is called mining. Many process is adopted during creation of Crypto currency.

After completing the mining process, a new crypto coin is created. Depending on given crypto currency’s code, coins are created exactly. Crypto currency is created by solving mathematical puzzles in a computer intensive process called mining. Crypto currency can be stored in”wallets”or digital directories accessed by password. Crypto currency can be broken into smaller unique units. One can trade fractions of crypto currency or crypto coin.

Thus cryptocurrency is a software and every transactions are recorded which is dictated by a code. The transactions are stored as database and is known as blockchain. It is created by algorithms that depends on cryptography. Crypto currency software is decentralized and distributed, which means it is hosted on many computers across the world. The algorithms
are written to award coins to computers that add transactions to the block chain.

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Nishita Masih

Nishita Masih

Nishita Maish is a senior content manager, blending creativity with strategic insight to craft compelling narratives that captivate audiences. With a passion for storytelling and a knack for digital engagement, she has elevated brands and content strategies to deliver lasting impact in the ever-evolving digital world.

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