A cryptocurrency is a form of online digital payment that can be used for the purchase of goods or services .
Currently, there are more than 13,000 cryptocurrencies traded on the market and, at the time of recording this video, their total value exceeds $ 2.5 trillion.
The most famous cryptocurrency is of course Bitcoin which currently has a capitalization of 1.2 trillion dollars.
The heart of crypto… the blockchain
The heart of any cryptocurrency is the blockchain.
The blockchain is a decentralized technology that uses a network of many computers to manage transactions and ensure their security, in this regard we can say that the more nodes that manage it, the more secure the blockchain will be.
The blockchain is a growing list of records called “blocks” that represent a ledger (ledger). These blocks are linked together and use encryption.
Each block contains the information of the previous block and the data relating to transactions.
Each data can be written inside a block but cannot be modified or deleted.
Transactions are validated and secured by the nodes of the network itself, making the blockchain non-manipulable.
Cryptocurrencies are trustless. This means that the parties involved in a transaction do not need to know or trust each other nor do they need a third party (e.g. a bank) for the system to work. There is no single entity that has authority over the system, the reliability of transactions is guaranteed by the architecture of the blockchain itself.
It is incorrect to say that cryptocurrencies are anonymous; instead, they are assets that make it possible to operate in conditions of pseudo-anonymity. in fact, it is possible to create a payment address at any time with a wallet without requiring any personal data.
As reguards transactions, however, cryptocurrencies represent the symbol of traceability. Each operation is in fact recorded on the blockchain in an indelible and non-modifiable way and, equally important, allowing anyone to consult it and access the data.