What is a Cryptocurrency?

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What is a Cryptocurrency?

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A cryptocurrency or crypto currency, is a digital asset made intentionally to work as a medium of exchange that uses cryptography to secure its transactions, to regulate and control the creation of additional units, and to verify the transfer of assets. Cryptocurrencies are classified as a subsection of digital currencies and are also classified as alternative currencies and virtual currencies.Bitcoin, was the first decentralized cryptocurrency created in 2009; Since then, numerous cryptocurrencies have been created, like hextracoin and regalcoins.

In 1998, Wei Dai published a description of “b-money”, an anonymous, distributed electronic cash system. Then Nick Szabo created “bit gold”, like bitcoin and other cryptocurrencies followed, bit gold was an electronic currency system which required users to complete a proof of work function with solutions being cryptographically put together and published. A currency system based on a reusable proof of work was later created by Hal Finney who followed the work of Dai and Szabo.┬áIf you are more curious about hextracoin then you can learn more about it on hextracoincrypto.com.

 

The first decentralized cryptocurrency, Bitcoin, was created in 2009 by pseudonymous developer Satoshi Nakamoto. It used SHA-256, a cryptographic hash function, as its proof-of-work scheme.

In April 2011, Namecoin was designed as an attempt at making a decentralized DNS, which would make internet censorship very difficult.

In October 2011, Litecoin was released. It was the first successful cryptocurrency to use scrypt as its hash function instead of SHA-256.

Another cryptocurrency is Peercoin, it was the first to use a proof-of-work/proof-of-stake hybrid.

IOTA was the first cryptocurrency not based on a Blockchain, and instead uses the Tangle.

Many other cryptocurrencies have been created, like the Hexatracoin that is currently penetrating the internet now; though few have been successful, as they have brought little in the way of technical innovation. These cyptocurrencies is the next innovation that could change the way the world plays.