We will understand what is hidden under the term "crypto-currency", what is it in simple words, and why is it called that way. The very name Crypto Currensy, meaning "crypto-currency", appeared in the magazine "Forbes" in 2011. And since that time the name has become firmly in use.
Crypto currency is a special kind of electronic means of payment. Strictly speaking, this is a mathematical code. It is called so because the cryptographic elements, namely the electronic signature, are used for the circulation of these digital money.
The units of measurement in this system are "coins" (literally "coins"). Crypto currency has no real expression such as metal coins or paper banknotes.
This money exists exclusively in digital form.
The principal feature that distinguishes crypto money from real ones is the way they arise in the digital space.
So, the real means of payment must first be made to a certain account or electronic wallet, and the crypto-currency units appear already in electronic form.
The issue of digital money takes place in various ways: it is ICO (initial coin placement, and mining (maintaining a special platform for creating new crypto -money ), and forging (the formation of new blocks in existing crypto-currencies). That is, the crypto currency is literally "from the Internet."
Another important difference from conventional currency is the decentralization of output. The release of electronic currency is the generation of a mathematical code followed by an electronic signature.
Only the Central Bank is entitled to emit real money, but any person can issue crypto money. In order to make transactions using crypto currency, you do not need to contact any third-party organizations (banks).
Payments using digital money are carried out exactly the same way as conventional electronic transfers through a cashless settlement system. The only exceptions are exchanges, through which crypto money can be monetized, that is, transferred to ordinary means of payment.
The circulation of such a currency occurs in the "block-Cheyne" system (literally "closed chain" in English).
This system is a database distributed over millions of personal computers around the world. At the same time, the storage and recording of information when calling cryptenodex takes place on all devices at once, which guarantees absolute transparency and openness of transactions.
