How Cryptocurrency works?

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How Cryptocurrency works?

The account of digital accounting units is decentralized, and the data functions using a distributed computer network, which is based on the equality of participants. To ensure the stability of the database of the chain of transaction blocks, participants use cryptography, for example, with a digital signature.

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No government bodies, from banks to tax ones, can influence transactions since the system has neither internal nor external administrator. Cryptocurrency transactions are irreversible, so no one can block or cancel the transfer, either, if he does not have a private key.

There is no trusted node on the network. Absolutely. This means that there is no person who can confirm how foreign operations are correct.

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To store data, transactions are combined into blocks that represent a single chain. It is continuous thanks to the hash sums included in the blocks: you can not change any block in the chain without changing the hashes in other blocks.

Usually, developers initially designate the upper limit of the total volume of emissions, but not all do. For example, in PPCoin and Sifcoin crypto-currency, the upper fixed limit is not only absent, but it is also possible to issue a debit, where a fixed amount in each transaction is destroyed.

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Crypto-currencies provide users with anonymity. Despite the fact that transactions are available to all, you will not find the data about the owners.

All crypto-currencies are based on cryptography. These encryption mechanisms are tested and considered very reliable. There is no chance of hacking such a system, so if there is someone who can do it – probably he will be able to crack all the encryption systems in the world.

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Where to get cryptocurrency?

  1. Ask someone to sell
  2. Exchange offices
  3. Exchanges
  4. Start the mine

But first, you need to download the client program or start your own purse. To get money, you need to send the sender your address, which is done in your wallet. Addresses in your wallet can be as much as you need. At least one address per transaction.

Having received a little money for your purse, you can have fun the rest of the way. Argue in chatiki about what currency and on which exchange to take, buy on the Internet something for bitcoins or to ponto before friends.

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How to mend

Mining – the generation of new blocks to maintain distributed platforms crypto wallet. By providing its computing power to generate new transaction blocks, the user can rely on the reward in the form of bitcoins.

It used to be mined on video cards. Right now, even on laptops. To begin, you need to choose what kind of cryptocurrency you will earn. Currencies are different. See what kind of varieties and how much they cost, you can, for example, here. To start the cannon, you need to select the fork, pool, miner, run the mining and make a conclusion to your purse. Fork is the use of the code base of one project to create another. For example, Litecoin is the fork of fork. Dogecoin is fork of litecoin. You can make Rusbasecoin as a fork dogecoin.

All forks are altcoins – the so-called crypto-currencies, made on the same technology as bitcoin, from which it all began. In fact, if Eve was made from Adam’s rib, Litecoin and other crypto-currencies are made from bitcoin code base.

There are a lot of forks, they are all based on the source code of cryptocurrency. To select a fork, you need to estimate the profit of mining of a particular cryptocurrency, for example, its liquidity. It is worth paying attention to the encryption algorithm used.

To determine the profit, you can use a calculator that estimates energy costs, and a calculator with a comparison table forks.

You can assess the liquidity of the cryptocurrency here, here and here.Also, you can choose forks on this exchange. If you select a fork that is not traded on the exchange, you can go directly to the exchanger.

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