Learned by 37 usersPublished on 2024.04.03 Last updated on 2024.10.15
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Introduction to Cryptocurrency
Cryptocurrency is a digital payment system that does not rely on banks to verify transactions. It is a peer-to-peer system that allows anyone, anywhere to send and receive payments. Cryptocurrency payments are not physical coins that are carried and exchanged in the real world, but rather exist purely as digital entries in an online database describing specific transactions.
Features of Cryptocurrency
Examples of Cryptocurrency
Security of Cryptocurrency
Applications of Cryptocurrency
The cryptocurrency "Bitcoin" was created by an individual or group using the pseudonym "Satoshi Nakamoto." Satoshi published the Bitcoin white paper in 2008, outlining the concept and technical details of Bitcoin. To this day, Satoshi's true identity remains unconfirmed.
If you are referring to "MBS" (Mahabibi Bin Solman), it appears to be a specific cryptocurrency, but I could not find specific information about its founders.
According to the information provided, the following venture capital firms have invested in cryptocurrencies or related projects:
Hashed: A Korean cryptocurrency venture capital firm, Hashed has invested $28.44 million in 20 blockchain projects including Radius, Decentralized Gaming Ventures (DGV), and Another Ball.
Tesla: Though not a traditional venture capital firm, Tesla CEO Elon Musk purchased $1.5 billion worth of Bitcoin for Tesla and personally invested in cryptocurrency.
This information indicates that Hashed is a major cryptocurrency venture capital firm, while Tesla's investment is more of a strategic investment as a company.
Mechanism of Cryptocurrency Operation:
Blockchain Technology:
Cryptocurrencies use blockchain technology, a distributed public ledger that records all transactions.
Each blockchain has an initial state (genesis block), defined for instance in a file named genesis.json
that specifies the initial supply and account balances.
Transactions and Accounts:
Transactions change states, such as transferring currency from one account to another.
Account balances and transaction history are stored in a struct, such as in a state.go
file used to update and verify account balances.
Encryption and Security:
Cryptocurrencies use encryption technology to protect transactions, employing public key cryptography for verification and authorization of transactions.
Transactions require a two-factor authentication process to enhance security.
Mining and Creation of New Currency:
New cryptocurrency units are created through a process called "mining," which involves using computer power to solve complex mathematical problems.
Miners earn rewards by validating transactions and creating new blocks.
Storage and Usage:
Cryptocurrencies are stored in digital wallets, which can be either physical devices or online software.
Users can use and trade cryptocurrencies through command line interfaces (CLI) or on exchange platforms.
In summary, cryptocurrencies operate through blockchain technology, encryption, and security measures, mining and creation of new currency, as well as storage and usage in digital wallets.