How cryptocurrency works?

Cryptocurrencies are a type of digital currency that is stored in digital wallets which can be obtained online or through a software application. Bitcoin is one example of a popular cryptocurrency, which unlike traditional currencies is not controlled by any government body, or central authority.

In order for someone to send or receive bitcoin, they must have their digital wallet and the public address key code from the other individual’s wallet. The transaction can then be carried out through bitcoin's peer-to-peer payment network.

How cryptocurrency works on blockchain ?

Blockchain is the technology that enables cryptocurrencies to work. It is basically a digital ledger that records all cryptocurrency transactions in chronological order. Meaning, it tracks who sent or received the coins, and when the transaction took place.

All information on blockchain is encrypted and not stored in any central repository where an individual or hacker might be able to gain access or copy it; instead, blockchain is distributed across thousands of computers so that no one person can control it.

Each transaction is public and recorded on a block chain. These blocks are linked to previous blocks, making the entire blockchain public. The data can be used to trace funds between users and identify accounts that have been involved in illegal transactions.

Transactions are confirmed when they are included in a computer generated 'block'. Each block has information confirming the details of the last block added to the Bitcoin network. This specific information allows for security features to stop people from reusing bitcoin for double spending.

Working of Crypto Currency 

1. To start with, you need a wallet to keep your Coins safe.

2.Then you are going to need the Cryptocurrency key (or address) of the person you want to send digital coins to.

3.Once you have both these things, you can start your transaction by inputting their address and the exact amount of cryptocurrency that needs to be sent.

4.After this, the network will then process your transaction through a process called mining where powerful computers work out complex cryptographic problems.