08/19/24
An Introduction to Cryptocurrencies
Author: Arav Sachevera
Editor(s): David Sun
Crypto, short for Cryptocurrency, is a form of currency where its value is stored digitally and its transactions are processed through cryptographic techniques. Crypto does not rely on any bank and instead is dependent on the users to send and receive payments. Crypto is stored in secure, digital wallets.
Why is it called Crypto?
The name "crypto" comes from the word encryption, which is used in all crypto transactions. Advanced coding is necessary to provide a safe platform for all users to have secure transactions.
History
The first Cryptocurrency, Bitcoin, was founded in 2009 and is one of the most popular cryptocurrencies. Since then, more options have entered the space, a prime example being Ethereum. Ethereum is a 2015-founded cryptocurrency that has succeeded in the last few years due to new programming and advancements. These advancements will continue to advance and make cryptocurrency an even better and safer platform for users to work with.
How does it work?
Crypto works on a blockchain: "a distributed database that maintains a continuously growing list of ordered records, called blocks." Units of crypto are created through a process called mining that uses the power generated. One can also sell these coins in exchange for cash. Lastly, if one owns crypto, they do not possess anything physical asset, but rather a key to move records or units of measure around without another party, like a bank, etc.