Crypto currency is considered as an encrypted digital currency that was transferred from peers and then confirmed by a public ledger in a process known as mining. It is now a form of money to buy and render services. Bitcoins is a great example of a crypto currency or online money. It was produced by people who runs a computer and uses software that solves mathematical problems who are called ‘’miners’’. It is not printed like euros and dollars.
How does it work?
Bitcoins is just like physical gold coins, and a form of digital currency where no one controls it. You can use it to purchase goods and other services online. Aside from it, it can also be traded from one wallet to another. The term wallet means a small personal database which you can store or install in your device.
How it is made?
Crypto currency like bitcoins, is just a simple file data ledger that is called blockchain. The size of it is the same to a lone text message in your mobile phone. Blochain contains three parts: identifying address, private key ledger and history of who buy and sold it. The most difficult or complex part is the private key ledger which a sophisticated digital signature is being caught to confirm every transaction. For each transaction, it will be confirmed but it also remains anonymous at the same time.
For anyone who has a strong computer, crypto currency such as bitcoins can be minted. It was made by those interested self- limiting systems that are called miners. The process that they are doing and producing is called mining which can be done by solving intensive mathematical problems. If you are considered as a large- scale miner, having multiple consumer grade computers, you can earn greater profits every single day.