A cryptocurrency is a digital or virtual currency that is secured by cryptography, that allow for secure online payments.
Bitcoin is the name of the best-known cryptocurrency, the one for which blockchain technology was invented.
A cryptocurrency wallet is required to use cryptocurrencies.
To record transactions, most cryptocurrencies use blockchain technology.
For example, Bitcoin and Ethereum networks uses blockchain.
Types of Cryptocurrency
- Proof of Work (PoW)
- Proof of Stake (PoS)
1. Proff of Work (PoW)
To confirm transactions and add new blocks to the blockchain, Proof of Work (POW) employs a competitive validation approach.
2. Proof of Stake (PoS)
Proof of Stake (POS) validates transactions by selecting miners at random.
TOKENS are digital assets based on a blockchain and specified by a project or smart contract.
A stablecoin is a cryptocurrency whose value is connected to an external asset, such as the US dollar or gold, in order to maintain price stability.