Crypto Noob #1 What is cryptocurrency?

Cryptocurrencies are digital assets, design to work as any other currency, in the exchange and trade of products. Cryptocurrencies don't have a physical representation such as the US dollar or European euro. They are more closely related to money inside a bank, ones, and zeros than fiat or precious metals.

Cryptocurrencies are created and secured with the use of cryptography. Complex algorithms are created that will not allow easy decryption. In addition, most cryptocurrencies use ledgers to keep tracks of all the transactions in their networks. These ledgers are kept in hundreds if not thousand of thousand of servers controlled by differents people and/or groups.
Anyone can keep a ledge, but because all ledgers must synchronize in order to make a transaction, nobody controls the network. This model is called decentralized because there is no one person controlling the technology rather a community. In order to make a transaction in a cryptocurrency network, the transaction must be confirmed by a majority of the servers.

Cryptocurrencies networks also use what are called nodes. Nodes are how the ledgers are updated. Nodes are usually set to close for a specified amount of memory such as 2 MB, but this varies from network to network. Once a node is closed, it is added to the ledger and all transaction inside that node are confirmed. Nodes are used because they offer an extra layer of security is anything goes wrong with the ledger system, the community can agree to rewind transactions to the node or block in which the problem originated. This method of adding blocks to the ledgers is also referred as blockchain.

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I'm starting the Crypto Noob # series, a 10 part series explaining the ins and out of the crypto world. If you are new to crypto and steem this will help you a lot. Be sure to follow and upvote to show appreciation and to be on the look out for this series continuation.

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