What is Cryptocurrency?

Cryptocurrency, or simply "Crypto," is a digital currency powered by Blockchain technology.

This innovation secures transactions and manages the creation of new units, all without a central authority like a bank or government. It exists only in digital form that you can send, receive and trade it online.

CoinMarketCap is a website that provides data on cryptocurrencies.

Examples of Cryptocurrency:

? Bitcoin

? Ethereum

? Solana

Definitions

1. Bitcoin:

Bitcoin is the first original cryptocurrency that was created in 2009 by an anonymous person or a group known as Satoshi Nakamoto.

• Without a bank, we can transfer this digital currency to anyone and anywhere in the world.
• It runs on a “Blockchain” technology, acts like a public ledger to make sure that transactions are secure, smooth and transparent that anyone can see.
• Without the need for a central authority, like a bank it it serves as a digital currency that allows for peer-to-peer transaction.
• For this we can take an example like you can send 50$ worth of Bitcoin to your friend in another country and this transaction gets happened instantly, without needing a bank.

What is Peer-to-Peer (P2P): In a P2P network, every computer can send and receive files sharing resources, (like each computer acts as both a server and a client) working together without a main server. This makes it efficient and less likely to fail.

2. Ethereum

Mostly known as “Ether or ETH”. Launched in 2015 and it is more than just a digital currency.

• It is also a platform where by using “Smart Contracts” developers can also build applications.

• Ethereum is popular for things like decentralized finance (DeFi) and non-fungible tokens (NFTs), allowing people to trade unique digital items.
• For Example: You rent an apartment using a smart contract on Ethereum that automatically processes payments when conditions are met, like signing the rental agreement.

3. Solana

Solana is one of the best example of the cryptocurrency and this platform is known for its fast transaction speeds.

• The best part is that Solana supports crypto projects and dApps. Solana was launched in 2020. Proof Of History.
• Solana uses a unique consensus mechanism called Proof of History (PoH), which allows for thousands of transactions per second, making it one of the fastest blockchain platforms available.
• With blockchain ecosystem, all of these three amazing cryptocurrencies have unique features. Solana uses a unique consensus mechanism called Proof of History (PoH), allowing for thousands of transactions per second, making it one of the fastest blockchain platforms available.

For Example: If you’re using a gaming app on Solana, you can buy in-game items instantly without waiting long periods or paying high transaction fees.