What is cryptocurrency?
Cryptography is about constructing and analyzing protocols that prevent third parties or the public from reading private messages.
Information about cryptocurrency transactions are encrypted for security.
Underlying technology behind each crypto currency is called blockchain. In the Blockchain cryptography is used to create, protect and validate transactions and identity of parties acting in a transaction and enable the creation of new coins via the mining process.
Our personal information and data is held by few large corporations and the government. These centralised servers can be easy target for cyber attacks. The primary feature of the blockchain is that it’s a decentralized, distributed database of transactions.
Cryptography was mainly practiced in secret by military or spy agencies. In late 1980s The Cypherpunks activist groep started advocating cryptography and privacy-enhancing technologies as a route to social and political change.
First cryptocurrencies began popping up in 2000’s. In 2008, Satoshi Nakamoto published a paper titled “Bitcoin: A Peer-to-Peer Electronic Cash System” that was later developed as a Bitcoin.
Success of Bitcoin has lead to the appearance of hundreds of different altcoins, which are all ultimately based on the same technology of the Blockchain but are designed differently in some ways, in order to achieve different goals. Cryptocurrencies can be split in coins and tokens.