Chainge Price

Introduction to Cryptocurrency

Cryptocurrency is a type of digital currency that uses cryptographic techniques to secure transactions and control the creation of new units. Here are the main features and workings of cryptocurrency:

Main Features

1. Decentralization: Cryptocurrencies are not controlled by any central authority, and transaction records are stored on a distributed public ledger (blockchain).
2. Immutability: Once a transaction is recorded on the blockchain, it cannot be altered or deleted.
3. Consensus Mechanism: The validity of transactions is verified through consensus algorithms (such as proof of work or proof of stake).

How It Works

1. Transaction Records: Transactions are recorded in blocks, including information about the participants, transaction time, transaction amount, etc.
2. Consensus Reached: The majority of participants in the distributed network must agree on the validity of the transaction.
3. Block Linking: Blocks are linked to the blockchain, using cryptographic hash values to ensure data integrity and immutability.

Blockchain Technology

Blockchain technology is the foundation of cryptocurrency, providing a secure, transparent, and immutable transaction record system. Blockchains can be categorized into public chains, private chains, and consortium chains.

Use Cases

Cryptocurrency can be used in various scenarios, such as cross-border payments and digital asset trading. However, many experts believe that cryptocurrencies (like Bitcoin) do not possess the fundamental characteristics of a currency, have high price volatility, and are unsuitable as a stable store of value.