Concept of cryptocurrency

Crypto-currency is a conjunction of two words crypto and currency in which crypt means hidden or secret. So, the overall “cryptocurrency” term means hidden or secret money.  

The concept of cryptocurrency came from cryptography which means hidden codes or keys which are taken into account for storing and sending cryptographic data between wallets and to public ledgers. The motive is to secure the communication. Cryptocurrencies are unique because they are not backed by governments or traditional financial institutions which sets them apart from other forms of money, also makes them potentially more robust and resistant to interference or manipulation by governments. This is one of the reasons why cryptocurrencies are so attractive to some people.

The term “cryptocurrency” refers to a financial asset that controls the creation of new units and employs cryptography to safeguard its transactions. Secure communication in the presence of outside parties is practised through the use of cryptography. It is employed to secure a cryptocurrency’s transactions and regulate the generation of new units of that cryptocurrency. 

These digital currencies are known as “cryptocurrencies” because cryptography is a crucial component of their security. The use of cryptography to safeguard transactions and regulate the generation of new units makes this form of digital currency secure and decentralised, as indicated by the name.

So, the name “cryptocurrency” reflects the fact that it uses cryptography to secure its transactions and to control the creation of new units.

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