A crypto-currency is a digital currency designed to be transferred between people in virtual transactions. Cryptomoedas exist only as data and not as physical objects, so it is not possible to actually have Bitcoin in hand or keep Ethereum in your safe. Ownership of Bitcoin means that you have the collective agreement of all the computers on the Bitcoin network that you own it at the moment and – most importantly – that it was legitimately created by a miner.
Blockchain – The technology behind cryptomoedas
Unlike traditional transactions, transfers of crypto-coins are not handled by banks or other financial institutions. Whenever someone makes a payment with electronic money, the payment is recorded in a digital reason book called a blockchain.
What is the blockchain
A list of transaction logs, called blocks, are connected to each other and encrypted. The blockchain is continually growing and is completely open to anyone. Each block in the blockchain contains:
- The details of the sender, recipient and amount of the digital currency.
- A hash, which serves as a unique fingerprint.
- A hash of the previous block in the chain.
When a new block is created, it is sent to all users on the network. Each user then checks the block and it is added to the blockchain.
What is a crypto-coin portfolio
A software or hardware that provides the ability to store and trade your crypto-coins. All crypto-coins are encrypted and unique. By sending funds you actually transmit an encrypted message to the recipient. Only the recipient’s crypto-wallet card can decrypt the message and therefore receive the funds. It is considered that a portfolio of cryptomade in hardware has fundamental advantages over software portfolios:
- It is immune to viruses or malware
- Your private keys are not exposed on your computer
- No import for software
- More secure and interactive
- Uses open source software that allows you to validate all device operations
- It can host several crypto-coins
- Bitcoin revolutionizes global trade
When Bitcoin appeared on the Internet as an open source software in January 2009, its use and specific terms like Blockchain was completely misunderstood by the vast majority of the world’s population, restricting its use to a few enthusiasts who were looking for a way to without the multiple governmental impositions that still exist.
Over time, more and more people have come to understand what Bitcoin and its platform are, translating them into simpler and increasingly common terms and thus gaining far more adherents to this global payment system.GigaFX review helped a lot in this.
In concrete terms, Bitcoin came to revolutionize commerce as we know it, having been the first decentralized digital currency. This means that the entire Bitcoin trading system works without the need for a central bank or an administrator because it is made from a directly connected peer-to-peer network and transactions are carried out directly between the same users, without the need for any intermediary.
As a security measure, each transaction is verified by nodes (crossovers), using encryption, which allows the anonymity of users (unlike central banks, who need to know the greatest possible details of each user before approving a transaction) and each one of the same transactions is permanently recorded in a public book, called Blockchain.
Due to the advantages described above, more and more people, companies and institutions adopt Bitcoin in their daily transactions. Read more information about the same at GigaFX website portal.