A cryptocurrency is a digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions, and verify the transfer of asset. Transmission of value through cryptocurreny is done in a digital setting. The system is different from existing payment systems for example PayPal of the digital banking app. Transactions are made by a distributed network of participants that coordinate around a shared set of facts.
Eradication of Middle Man
Transactions with crypto are not done in face-to-face cash payment. In that case, a bank confirms merchants about the balance of another with whom the transaction is done. Bank maintains a ledger that says it owes you the money. In a word, no backbone exists in cryptocurrency as a result hackers aren’t able to access to your account. In cryptocurrency system, every customer is their own bank and instead of middleman, software is used here. The program can be downloaded and run in any computer. This software connects to the internet and reaches out to discover other computers running the same program to form connections with them creating a peer-to-peer network. After one node creates new information, it will broadcast it to all those it’s connected to.
Sharing of information Using Nodes
The nodes share information on transactions maintaining records. Each node stores what is effectively a very long list and the list is updated on a frequent basis with a batch of transactions added every time. The software automatically verifies a new batch of transactions which is propagated. The most popular method of creating a block is mining.
Working procedures of cryptocurrency
Cryptocurrency network hinders other users from spending your money and you are going to get your coins without losing your privacy. A user needs to access to account with private key, a large number which is impossible to guess. But the demerit is that once you lose the private key, you will never be able to recover your account.
How to make Transactions
Bitcoin debit card is of two types including Plastic debit cards, used for both online and offline payments, and Virtual debit cards, only for online payments. While purchasing using a bitcoin debit card, only the amount of cryptocurrency needed for that particular transaction is debited from the card. Sometimes the debited amount is converted into fiat currency before being remitted to the merchant. You can top-up your debit card when the balance hits zero by transferring bitcoins from another of your wallets. A user can buy cryptocurrency from any exchange he wants from the market place. In this present age when privacy is at a vulnerable situation, crypto society eradicates third parties with an eye to resolving the privacy issue and to provide safeguard. Crypto provides you the opportunity to be your own bank account and safekeeper of your own money