Crypto currency - what is it in simple words, how everything is arranged and the list of the most rated crypto currencies

The article of today's - crypto-currency, attracting the attention of the public is not the first year. Below we will talk about its essence, extraction, get acquainted with technology, exchanges and calculators.

Crypto currency - what is it in simple words, how everything is arranged and the list of the most rated crypto currencies

In general, the crypto currency is a recent phenomenon (in 2009 it all began), but now it has already very tightly won the interest of the "advanced part of humanity". Why? Well, there are a lot of reasons. For example, how do you like that such a payment system does not and can not have an owner and even an administrator (self-managed system).

Even in it are absent or very low commissions for transfers, again due to the lack of a master who needs to be unfastened in his pocket. In addition, most crypto systems are anonymous, which also attracts certain segments of society.

Crypto-currency

And, of course, a very powerful magnet is the opportunity to make money on all this, and not only speculating on the course of the Crypto-currency. There is also such a way of earning as Mining - here they pay for providing computing power (for example, their PC or specially assembled computer system) for the extraction of monetary units and for carrying out transactions (transfers).

But first things first. Today we will talk about what is generally a crypto currency (in simple words I'll try to explain it, understandable to everyone), how it appeared and how it can be used today, what is its current exchange rate, what exchanges of crypto currency should be used, what is needed for mining, where is better to exchange and where to find the most accurate calculator of the course?

What is crypto currency and why is it needed?

When the first electronic money appeared, people began to make a great number of payment transactions on the Internet. Of course, administrators of payment systems preferred not to lose the benefits from their hands and appointed a commission for every transfer or exchange that was made, especially commissions felt when transferring electronic money to real ones.

Advanced users of the network asked the question: "How to make payment transactions without commission?", Began to offer a variety of options. In 2009, the anonym Satoshi Nikamoto realized his own vision of the solution to the problem: he suggested issuing an information currency that was not provided with anything, but capable of being a unique medium of exchange. The currency was called Bitcoin.

The history of bitcoin - the world's first crypto currency

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Any user could (and can still) create a crypto-purse and make payment transactions through it, without paying any commission to the system (although, to increase the speed of the transaction, you still have to pay a commission, but it still turns out to be small). That is, the commission is not mandatory, but when it is paid, the time of the transaction (transfer) is increased.

To eliminate fraud attempts, absolutely all operations were decided to advertise in the public domain - every person using crypto currency has the opportunity to see which purse and how many were transferred bitcoins. True, it is not a fact that you will get the name out of this information, rather the reverse, because the system is truly anonymous.

Crypto currency is not provided with gold reserves or the economy of any state, however it has a certain rate, which is constantly changing, and is quoted on the stock exchange. The more people use bitcoins as a means of exchange, the higher the rate, as the popularity of information money increases, and their total number is strictly limited. For example, in the case of bitcoyne, in accordance with the algorithm for its implementation, more than 21 million monetary units can not be created. So far, this number has not been reached, which will be the course after the extraction of the last bitcoin - is unknown.

In general, one must understand that the creators of crypto-currencies were concerned that it became a virtual analogue of gold. It was for this that the mathematical-cryptographic model of its realization was sharpened. Its total stock should be limited, the extraction of new monetary units is complicated (the miners are resource-intensive search of numbers, the hash of which will fit in a certain template - see the link for hash and hashing) and there is no way to bypass it (print new money).

And most importantly - any such crypto-currency system can not have something like a master, but even an external or internal administrator. It does not belong to anyone and therefore there are almost no commissions for translations. The system is controlled by the algorithm that is embedded in it, and no one (neither courts, nor officials, nor persons in execution) can interfere with its work. This freedom has a downside, but this is what distinguishes bitcoins, lightcoins and other coins from any other type of electronic money.

Why is the crypto currency so called and how does it work?

Obviously, the name comes from the words - cryptographic currency. In fact, it is encrypted (cryptography is just a field of science that studies the methods of encryption and decryption of information) in this system, not all, but much. Cryptography is used to protect the chain of transactions conducted, i.e. the most valuable thing is in this system, namely the database with all operations performed with monetary units.

Let me abstractly outline the structure of any crypto currency (and now they have divorced a lot), so that you understand its fundamental difference from everything that was before:

Crypto currency has no single administrator (neither internal nor external). It is completely self-organizing and independent of anyone else's system.

There is no central server on which to store the database with all the transactions (translations) in the system (it's like in a bittorent - a decentralized system). The matter is that all participants of the system have copies of the transaction database and they are constantly checked against each other by special algorithms. And this is all implemented on the basis of technology called blocking. By itself, this technology represents, perhaps, even more interest than the crypto-currency created on its basis.

Since there is a copy of the database for all participants, everyone can, if desired, track any payment in the system. But to track is not to get. It's like in a museum - you can watch, but you can not touch.

All payments in the system are signed (encrypted) with a secret key, available only to the owner of the money. Each participant of the system receives at his disposal a special address (essentially a purse) and a secret key (in fact a password). All transactions are encrypted in this way.

Adding a new block to the database is agreed upon when the next currency of the given crypto currency is mined by the miner (in a biktoin, the complexity of the calculations is chosen such that the new currency appears approximately every 10 minutes). At that moment, this information is added to all the distributed databases, and along with it information about all transfers (transactions) made to this moment.

The commission in the system is paid mainly to speed up the transfer of money, and there are no additional fees.

To crack such a system you need to have access to at least half of all the computers involved in its maintenance, and there are already hundreds of thousands of them, which makes the hacking unlikely.

The next block in the transaction database (the block chain) contains information about the block that went before it (using its unique hash, which serves as a guarantee of integrity, as when downloading files via the bittorent), and so on. The bottom line is that to forge a payment it is necessary to forge the entire chain of blocks stored in a distributed database (on thousands of computers), which is very expensive, requires access to these computers and makes such actions meaningless.

For more information read a full list of crypto currency here - https://topcoinslist.com