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Cryptocurrency So what is this new term that is on our TV screen always when talking business news? Many people are still struggling to comprehend what this is all about. So what is Cryptocurrency? It is a digital currency that uses cryptography to ensure its transactions are safe. These Cryptocurrency transactions are done online hence it operates on a public database for its distribution. Its digital public ledger keep track of all transactions called blockchain. Each transaction uses a digital signature. These signatures are encrypted by a piece of data called cryptography which acts as a proof that the transaction actually came from the owner of the wallet. There are different types of Cryptocurrencies namely:      Bitcoin Litecoin Swiftcoin Ethereum Ripple etc. The most popular being Bitcoin, which is a peer to peer digital money. Who came up with this Bitcoin idea? Bitcoin software is believed to have been created in 2009 by Satoshi Nakamoto. Information about his real identity still remains scarce. Bitcoin was first traded in 2010 by someone who exchanged some Bitcoins for two pizzas. The idea behind Bitcoin was to address the shortcomings of the current payment systems globally. It was actually the first decentralized digital currency since there is no central bank. The transaction is peer to peer over the network. This Bitcoin can be exchanged for other currencies or even products and services. How Does this Cryptocurrency Work? Remember Cryptocurrency works just like PayPal or a debit card. For you to use Cryptocurrency, you need to set up a Coinbase account where you can transact and store these Bitcoins. The transactions are done from peer to peer in a network from the Cryptocurrency wallet. This is what the transaction goes through:  Someone requests for a transaction, and then the request is sent over the entire network.  The transactions are collected into blocks by the computers in the network.  The blocks of transactions are added to a public ledger where some complex computational puzzle is solved.  When the computer finds the solution to the puzzle, it is broadcasted to the entire network.  The computers in the network checks the solution from the puzzle solved against the transactions in the blocks, so as to avoid double spending.  Finally the block is added to the chains to show that the transaction is complete. Summary      Cryptocurrency is a digital currency that is decentralized. Transactions are done from peer to peer in the network. Each transaction uses a digital signature. Blockchain is a digital public ledger where transaction records are kept. Block is added to the chains to show that the transaction is complete.