Crypto: Understanding Crypto Money, How it Works and Its Types
BONSERNEWS.COM – Along with the development of time, the medium of exchange is not always in physical form, such as coins or paper money, there is also a new form of exchange called crypto money.
Nowadays, talk about cryptocurrencies or crypto money is in great demand by young people. In fact, there are many people who think that investing in crypto money is more profitable than investing in stocks.
This makes everyone curious about what crypto money is and how it works, cryptocurrency comes from the word cryptography which means secret code and currency which means currency.
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In other words, crypto money is a virtual currency that is protected by a secret code. In simple terms, crypto money is a currency that has quite complex secret codes that function to protect and maintain the security of this digital currency.
Definition of Crypto Money
Understanding Crypto Money, taken from investopedia.com, crypto currency is digital currency that is guaranteed by cryptography, which makes it almost impossible to counterfeit or spend double.
Cryptography itself is a method used to protect information and communication channels through the use of code. The concept of cryptography has actually existed since World War II.
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At that time, Germany used cryptography to send secret codes so that they were not easily read by the allies. The use of cryptography makes the use of cryptocurrencies very difficult to manipulate, so cryptocurrencies cannot be counterfeited.
Many cryptocurrencies are a decentralized network based on blockchain technology. Blockchain itself is a technology similar to a distributed ledger and enforced by a network of different computers.
How Cryptocurrencies Work
There are three keys attached to how cryptocurrency works, namely digital, encrypted, and decentralized. This means that it is not the same as conventional currencies such as US dollars, Euros and even Rupiah.
Crypto is not issued by any central authority, which makes it theoretically immune to government interference or manipulation.