What is the cryptocurrency market?
Cryptocurrency is one of the types of digital currency, but there are very important features. In the traditional payment system, there are intermediaries, they keep records of transactions, provide money transfers only if the appropriate funds are available. Such intermediaries, for example, include banks. The world of cryptocurrency is completely decentralized, that is, there are no third-party administrators. Such a currency is the number in the appropriate position of the information packet of the data transfer protocol. To store information, transactions are combined into blocks. As a result, a continuous chain of blocks is formed. It’s called blockchain. At the same time, it is impossible to change the data in the block without changing the hashes in subsequent blocks.
To date, there are more than 2,000 types of cryptocurrencies. Bitcoin is considered the first and most popular currency. It was invented in 2009 by the inventor of bitcoin – Satoshi Nakamoto. The designation of the cryptocurrency in the market is BTC, XBT. SHA-256d hash function provided. Block verification – PoW. In 2018, Bitcoin was recognized as the cryptocurrency with the largest market capitalization.
Among the active currencies, it is worth mentioning Ethereum, the founder is Vitaly Buterin, the year of creation is 2015, but the currency still enjoys great attention from those involved in mining.