The Technology Behind Cryptocurrency

At the core of crypto is blockchain technology - a digital ledger that records all transactions in the form of blocks that are cryptographically linked together in a chronological order. Each block contains details of transactions like sender, receiver, and amount transferred along with a timestamp. Blockchain maintains an immutable record of transactions that everyone on the network can view but no single user controls it.

How it Works

When a transaction is initiated, it is broadcasted to the peer-to-peer network. Miners on the network validate the transaction by solving complex cryptographic puzzles. Once validated, the block of transactions is added to the blockchain in a permanent and unalterable manner. The first miner to solve the puzzle and add the block is rewarded with newly minted coins. Cryptocurrency fuels the decentralization as mining power is distributed.

Popular Cryptocurrencies

Bitcoin: Launched in 2009, Bitcoin is the first and largest crypto. It has a market cap of over $800 billion. With a fixed supply of 21 million coins, it is considered a store of value like gold.

Ethereum: Second largest crypto based on market cap, Ethereum was launched in 2015. In addition to its own currency Ether, it allows developers to build decentralized applications on its blockchain.

Binance Coin: Native crypto coin of Binance exchange, the largest crypto exchange. It is used to pay fees on the platform and for trading.

Tether: Launched in 2014, Tether is a stablecoin whose value is pegged to the US dollar to reduce volatility. It aims to facilitate transfers between crypto and fiat currencies.

Cardano: Launched in 2017, Cardano aims to solve issues of scalability and interoperability. It is based on peer-reviewed academic research and built using Haskell programming language.

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