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@ CryptJoh
2025-02-09 04:37:57
What is a cryptocurrency ?
#Blockchain #Cryptocurrency #Cryptomindmap
A cryptocurrency is a digital currency secured by cryptography.
Cryptocurrency operates on a blockchain network as a distributed ledger, secured by cryptography.
Users own the private and public keys.
For the first time in the digital age, the double spending issue is resolved thanks to the blockchain consensus mechanism. This ensures decentralization and security, creating a trustless environment where transactions are immutable once confirmed.
Cryptocurrency can be categorized in different groups
Bitcoin is the first ever created cryptocurrency on the bitcoin blockchain.
Altcoins is a generic term regrouping every crypto except Bitcoin. There are over a million of ever created Altcoins and more than 20,000 currently active. They can be:
- Coin from a programable blockchain such as Ethereum (ETH), Solana (SOL), Cardano (ADA), or Sui (SUI) for example. Ecosystem of applications are built on top of these blockchain networks.
- Token of Decentralized Application (DApp) built on programmable blockchain such as ChainLink (LINK) or Aave (AAVE) on Ethereum.
- Memecoins are a type of cryptocurrency, typically inspired by internet memes or popular culture, with little or no intrinsic value but cultural and community support. Memecoins such as Dogecoin (DOGE) or Shiba (SHIB) are some of the strongest community in crypto. The price of memecoins is also the most volatile of the entire crypto ecosystem.
A coin is the native cryptocurrency of a blockchain, used for validator rewards and transaction fees. A token, on the other hand, is built on top of an existing blockchain for specific applications.
They are two mains ways to use with cryptocurrencies.
With a wallets for direct blockchain interactions, which contains the keys to necessary for true ownership of the cryptocurrencies, similar to owning cash or any other tangible form of money.
On a centralized exchanges which act as on/off ramps for buying, selling, and keeping crypto. The exchange is in the charge of the private key. It is the equivalent of having money on a bank account.
Remember the saying "Not Your Keys, Not Your Crypto". If you don't control your private keys, you don't truly own your crypto.\
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Users initiate transactions, send, receive and hold cryptocurrency and their wallet.
Validators ensure blockchain integrity by verifying transactions and building blocks, earning crypto in return.
Developers work on the network infrastructure and the ecosystem, including DApps. While general programming languages can be used, languages specifically designed for blockchain development, like Solidity for Ethereum, have emerged to facilitate crypto development..
Thanks for reading! 🌟 Share in comments your thoughts on cryptocurrency and what topic you would like to be mapped next! #Crypto