What is Crypto Money?
In order to understand the concept of crypto money, it is necessary to know what cryptography is. Cryptography; It is a set of mathematical methods that work to provide information security concepts such as privacy, authentication, integrity.
These methods are intended to protect information from active or passive attacks that may be encountered during the transmission of information, thereby protecting the sender and receiver of the information. In other words, cryptography is also referred to as all of the techniques used to convert readable information into a state that cannot be read by unwanted parties.
With the development of cryptography science, the security of the information transferred on the internet started to increase. These developments led to the emergence of crypto money as a software. The first Bitcoin that emerged is a crypto currency that works with this logic and is the most popular of the crypto currencies.
Unlike real money, crypto money is not a hand-held value carried on a leather wallet. Since it is developed through a decentralized system, no state or private organization has the right to speak in the production of these funds.
In the classical sense, all the coins we use are objects that are produced by states and have a certain value because there is state support behind them. However, the emerging crypto currency technology has been produced by individual users all over the world without any government support and has achieved a certain value.
What is Bitcoin?
Bitcoin is thought to have been developed in 2008 by a group or a person named Satoshi Nakamoto. In January 2009, the first block (Genesis block) was created and mining and transfers started. Bitcoin transfers directly from person to person (P2P) and no intermediaries are needed. In transfers, it is difficult to identify the source of the transmission and the receiver. If necessary security measures are taken, no one except you can check or confiscate your accounts and all accounts are stored in your digital wallets.
In short, it is a completely free virtual currency. This system, by nature, removes money from being a goal and turns it into a tool. In this regard, Bitcoin is a new experimental technology that the current financial system has consistently tried to ignore, but has failed!
In summary, Bitcoin;
- It is a digital currency and has no material / physical equivalent.
- Bitcoin is a network interaction, has no center, and provides digital money transfers from A to B.
- Transfers can be made from any point that has internet.
- There is no broker.
- Bitcoin is written in open source code and is open to all, and the owner of the system is anyone who uses it.
- It is used in all countries and cannot interfere with the personal account.
- Bitcoin is produced by a free program called miner.
- The Bitcoin to be produced is limited, 21 million will be produced in total.
- In order to control the production rate, the “difficulty level leyen that determines the Bitcoin extraction rate is continuously adjusted according to specific protocols. The difficulty is determined by the production intensity in the network.
- Each user has a digital wallet and account.