In the cryptocurrency world, there is one important question almost everyone has searched in Google at some point.
It’s the question that makes crypto beginners sit up all day and night, scrolling down multiple web pages finding for an answer. The question that has started a lot of crypto & blockchain wars, and yet, has managed to stay open.
A cryptocurrency is a digital currency that runs in a decentralized manner and uses encryption. In simple words, no central bank or government regulates this currency (it’s decentralized). It is digital in that it is virtual, not like physical money. And it uses security features in order to avoid counterfeiters, secure transactions, and generate the units of currency.
The validity of each crypto coins is provided by a blockchain. A blockchain is a frequently growing list of records, called blocks, which are linked and secured using cryptography.
Now, you might have got the basic idea of what a cryptocurrency is. Cryptocurrencies make use of different algorithms named as hashing algorithms.
Cryptocurrencies algorithms and hash functions are used to secure blockchain transactions and are a necessary component of the crypto mining process.