What is cryptocurrency? The word "cryptocurrency" comes from the Greek word meaning "hidden"; 'crypt' translates as 'hiding place'. These form a private, hidden and secure currency. Cryptocurrency is a decentralized currency that uses peer-to-peer technology, which allows all functions such as issuing currency, processing transactions, and verification to be performed collectively by the network. Cryptocurrencies are highly secure electronic currencies that run on blockchain technology. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay Origin: While the origins of the technology date back to the 1980s, cryptocurrencies as we know them are a relatively new development. Bitcoin only dates back to 2008, when Satoshi Nakamoto (whose identity remains unknown) presented a white paper outlining its early principles, combining decentralized control, user anonymity, and record-keeping on the blockchain. In 2009, Satoshi released Bitcoin and a small group of enthusiasts began trading the currency. Since this time, alternative cryptocurrencies and exchanges have appeared, and some merchants have started to accept digital currencies. Why the need for this concept? Founded in 2009, Bitcoin (the first cryptocurrency) was born from the idea of ​​creating a currency independent of any other authority, instantly electronically transferable and with low transaction fees. Each coin, transaction and person involved is assigned a code. Cryptocurrencies involve layers of encryption, built on top of each other, making them anonymous, secure, and unique. Each layer is stored infinitely on a distributed master ledger, the blockchain, and each cryptocurrency holder has a key that authenticates their identity, allowing them to buy and sell. Why did it go viral? Since its inception, cryptocurrency (particularly Bitcoin) has increased in value exponentially, particularly in 2016 and 2017, as more and more people began to accept cryptocurrency as a credible form of currency and not just a word of order for technology workers. Bitcoin's growth can be traced back to a number of factors. First, the cryptocurrency model itself allows project developers to bypass banks to raise funds. For traders there is the advantage of being able to expand into new markets. This creates net results of lower fees, lower administrative costs, and broader reach into previously inaccessible markets. How it works: A bitcoin wallet contains the bitcoin address, which keeps track of all our transactions, and therefore the details of our total balance. This address is also known as the “public key” which is made available to everyone. Each address/public key has a corresponding “private key”. It is a private thing and it is essential to keep it secret and safe. The two keys are related, but there is no way to distinguish the private key from the public key. Any transaction issued from our bitcoin address must be “signed” with our private key. To do this, we enter both the private key and the transaction details (how many bitcoins we want to send and to whom) into the bitcoin software on our computer or smartphone. With this information, the program issues a digital signature, which is sent to the network for validation. This transaction can be validated by confirming that we own the bitcoin and that we are transferring it to someone and that we have not already sent it to someone else. This is one of the genius parts of bitcoin: if the signature was made with the private key that.