What Is Cryptocurrency? A Breakdown Of Bitcoin & Blockchain Basics
Philosopher Alan Watt asked the question, “What if money were nothing?”
Many people think cryptocurrencies answer that question. Now that’s a little glib, but it also has some truth to it.
Cryptocurrencies are an attempt to create decentralized economies, where exchanges of values and properties can be made without governmental interference (i.e., taxes, permits, licenses, etc.)
The problem occurs whenever traders want to translate these transactions into real world values. That’s where it gets tricky and leads some people to crime should they try to launder their newfound gains. It seems like just paying your taxes would be much simpler, but hey, where’s the thrill in that?
Cryptocurrencies use blockchain as their primary transactional base and security. The first successfully launched cryptocurrency was Bitcoin which also launched with blockchain as its trading system.
Blockchain is a system and a process. It’s an ever-growing compilation of records organized into digital information blocks that share information between them to secure these records with cryptography and protect them with unchangeable backups to prevent record corruption.