A Cryptocurrency, cryptosystem or cryptocoin is any digital asset designed to function as a medium of electronic exchange where individual virtual coin ownership records are kept in a distributed ledger usually in a virtual computerized environment. The original Cryptocurrency was the Peer to Peer Currency (PPC) system that was designed back in the 1990’s. The system was quite controversial at the time, as many people were quick to claim that the system did not follow the traditional definition of a currency. The system allowed users to transact without using credit cards, as it was all done through the internet. Since then however, other Cryptocurrency systems have been designed such as the Credit Protocol (CPP), Hyper Ledger Trading (HTT), Paysafe Therapeutic Benefits (PTB) and Distributed Ledger Technology (DBT).
All Cryptocurrencies are decentralized, making use of proof-of-work (PoW) technology. PoW is the calculation of how many actual coins can be created out of a given amount of real-time (non-fiat) money. There are two primary methods used for PoW: Proof of Stake and Proof of Authority. With Cryptocurrency Proof of Authority, a set number of “credits” is assigned to each account; this number is called a stake and is only used as a measure of value by each account holder. On the other hand with Proof of Stake, the actual value of the coins is actually tied directly to the performance of the network – this is a lower level of risk but offers a lower possibility to realize profit from holding Cryptocurrency.
Some of the most popular Cryptocurrency out there include Dash, LTC, Doge, and Xoom. One of the main differences between these currencies is their popularity among the general public. While some are quite new, like Dash, which was launched in 2021, others like Doge are very old currencies that have had plenty of time to become popular. Popularity is one thing, however; it’s also important to know how well a given Cryptocurrency works in the real world. This is where the real value of a Cryptocurrency becomes relevant; if Cryptocurrency doesn’t go up in value because more people get to know about it, then it will not be worth as much as other Cryptocurrency.