Cryptocurrency
Cryptocurrency is a digital or virtual currency that is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend. Cryptocurrencies are decentralized networks based on blockchain technology—a distributed ledger enforced by a disparate network of computers. A defining feature of cryptocurrencies is that they are generally not issued by any central authority, rendering them theoretically immune to government interference or manipulation.
History of Cryptocurrency
The first cryptocurrency to capture the public imagination was Bitcoin, which was launched in 2009 by an individual or group known under the pseudonym Satoshi Nakamoto. As of February 2021, there were over 5,000 cryptocurrencies by market capitalization. Bitcoin, the largest cryptocurrency by market capitalization, is the first decentralized cryptocurrency that has gained the public’s attention and is considered by many to be the first modern cryptocurrency.
The idea behind cryptocurrency was first described in 1998 by Wei Dai on the cypherpunks mailing list. His idea was to create a new form of money that uses cryptography to control its creation and transactions, rather than a central authority. The first Bitcoin specification and proof of concept was published in 2009 in a cryptography mailing list by Satoshi Nakamoto. Satoshi left the project in late 2010 without revealing much about himself.
Comparison Table
| Cryptocurrency | Decentralized | Immune to Government Interference |
|---|---|---|
| Bitcoin | Yes | Yes |
| Ethereum | Yes | Yes |
| Ripple | No | No |
Summary
Cryptocurrency is a digital or virtual currency that is secured by cryptography, making it nearly impossible to counterfeit or double-spend. Cryptocurrencies are decentralized networks based on blockchain technology, a distributed ledger enforced by a disparate network of computers. Cryptocurrencies are not issued by any central authority, rendering them theoretically immune to government interference or manipulation. Bitcoin was the first cryptocurrency to capture the public imagination, and as of February 2021, there were over 5,000 cryptocurrencies by market capitalization. For more information about cryptocurrency, visit websites such as Investopedia, CoinMarketCap, and CoinDesk.
See Also
- Blockchain
- Bitcoin
- Ethereum
- Ripple
- Litecoin
- Cryptography
- Mining
- Decentralized Applications (DApps)
- Smart Contracts
- Initial Coin Offerings (ICOs)
