How does cryptocurrency work.

[Peppul]

Firstly crypto currency is an encrypted, decentralized digital currency transferred between peers and confirmed in a public ledger via a process known as mining.
To understand how cryptocurrency works, you will need few basic concepts, specifically.
1. Public ledgers.
All confirmed transactions from the start of a cryto currency's creation are stored in public ledger. The identities of the coin owner are encrypted and the system uses other cryptographic techniques to ensure the legitimacy of record keeping. The ledger also ensure that corresponding digital wallets can calculate an accurate spendable balance. Also , new transactions can be checked to ensure that each transactions uses coins currently owned by the spender.
2. Transactions. A transfer of funds between two digital wallets is called transaction. That transaction get submitted to a public ledger and awaits confirmation. Wallets uses can encrypted electromagnetic signature when a transaction is made. This signature is an encrypted piece of data called a cryto graphic signature and it provides a mathematical proof that the transaction came from the owner of the wallet.
3. Mining.
Mini g is the process of confirming transactions and adding them to a public ledger. To add a transaction to the ledger, the miner must solve an increasing my complex computational problem like a mathematical puzzle. Mining is open source so that anyone can confirm the transaction. The first miner to solve the puzzle adds a block of transaction to the ledger.
If you also have any idea you can also add for people that don't know.

 

[Bookwormlux]

That was very insightful. A lot of us are not too conversant with terms related to crypto currencies and this makes everything confusing. It also makes us prone to scammers who would want to exploit this opportunity to deprive us of our hard earned money.

In addition to all that you have said, I want to make some enlightenment about crypto currency scams. There seems to be a lot of them around and I feel bad whenever I see people fall for them.
The first method I know of is that some scammers deceive newbies to believe that they could share applications with them that would help them mine crypto currencies for life. This is a lie, there is no such application.
Some deceive users to invest money with the hope that they would be able to get profits in a very short time, some even deceive you to believe you could get 100 per cent in less than two hours.
There are so many of them and we need to be careful.

 

[Josemendez]

Cryptocurrency works through the blockchain ,and the blockchain happens to work in line with the help of distribution ledger technology. It is through this distribution ledger technology ,that Cryptocurrency derived the properties of being Secure , distributive , immutable , Annoymous/ pseudonymous , and programmable ,as seen in blockchain .
When a transaction is initiated a new block is established ,which is sent to all participants in the network . This is furthered to nodes , and other processes happens until the block is added to previous block , confirmed in the network , and finally sent as complete to the network .
Basically , Bitcoin and litecoin belongs to the public Blockchain where everyone can connect to ,and carry out transactions ,unlike private blockchain which is confined to a particular organization .

 

[btaliat]

What a very insightful article. With this your article, I am pretty sure that newbies who doesn't even know anything about cryptocurrency before would have learnt one or two things from this article.