What is cryptocurrency? | IN 60 SECONDS


If you own cryptocurrency, or coin, you control
some numbers on a ledger that is stored on
computers all across the world.
The ledger contains all of the transactions
that have ever occurred for that cryptocurrency.
You control your coin through a wallet, which
is really just software used to engage in transactions.
You control your wallet through a private key
– a code – that is required to transfer coin
from your wallet.
Your wallet also has a public key that people use to send coin to you.
What keeps someone from changing the ledger
and stealing your coin?
A technology called blockchain.
Blockchain incorporates the existing ledger
into a code called a hash.
If someone tries to steal coin, the hash changes
and all the computers that store the ledger cry foul.
In fact, every time you engage in a transaction,
these computers, called miners, verify the
transaction by solving a complex mathematical
puzzle that involves the hash.
The computer that does this the fastest is
rewarded with coin, which keeps the system
financially viable.
What do you think is the future of cryptocurrencies?
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