What is digital currency?
Knowledge of digital currencies: Digital Currency is a word that few people have not heard of today.
The topic of the world of digital currencies is one of the hottest topics these days.
In addition, many are looking to invest in digital currencies.
Analyzes predict that in the near future, the digital currency will replace physical currencies.
We suggest you stay with us until the end of this article. Because we want to introduce you to this wonderful world.
What is Digital Currency?
The idea of digital currency emerged in the late 1990s by DigiCash.
Then, in 2009, the first digital currency called “Bitcoin” was officially introduced to the world by an unidentified individual or group.
“Digital currency” or “cryptocurrency” is an Internet-based currency that has all the features of physical money. The only difference with physical currencies is that they make transactions instantly and without any boundaries between people.
Cryptocurrencies exist, are consumed, or stored digitally. You must use virtual wallets to transfer them.
These wallets are actually applications that you can deposit or withdraw by installing them on your phone or computer. However, some physical wallets have recently entered the market, which is similar to flash memory and is called “token”.
The most famous digital currency
Bitcoin is the most famous digital currency in the world, and some countries have laws for it. Some have categorized it as a commodity. Whatever it is, Bitcoin has gained a lot of value and popularity, and the trading volume of this digital currency is billions of dollars daily.
What was the need to create a digital currency?
We can say that the most important reason for the emergence of digital currency was the need for an efficient system in financial system.
In other words, with the time passing and the advancement of science and human entry into the digital world, the emergence of a digital financial unit seems to be part of the evolution of the monetary unit.
What is the use case of cryptocurrencies?
The question for many is how to use digital currency?
The first step is to install a wallet. As we said, a wallet is like a bank account. This way you can receive or maintain cryptocurrency. With the help of a wallet, you can create, store or sell cryptocurrencies.
What is Blockchain?
One of the most frequently asked questions by users in the world of digital currency is about the blockchain. Blockchain is simply a data entry system.
The difference between this system and other ones is that the information stored on the blockchain is shared among all the supposed members of a network. In this case, the possibility of data distribution, hacking, or manipulation of data becomes almost impossible and system security is greatly increased.
Coin and Token
Above all, The digital currency itself has two categories, “tokens” and “coins”, and both are nothing but a string of code on the blockchain.
Furthermore, The most important and fundamental difference between the two is in the issue of personal blockchain. Tokens do not have a personal blockchain, but Coins have a personal blockchain.
For instance, if you have a bitcoin, there is no file or thing that you can point to as a bitcoin property.
In conclusion, It is only from the records of transactions of an account on the blockchain that it can be said how much bitcoin a person really has.
Read more: Zero to Hero Digital Currency Training