If you want to know what cryptocurrencies are, how they work and how to use them to bet, you are in the right place. From here we will explain everything about this form of payment that is being used more and more all over the world every day.
Before starting to use cryptocurrencies, it is very important to know their history, characteristics, types, advantages and disadvantages of them, etc. And we take care of that; In this article you will discover this system and you will be able to start participating in it, either using it for your bets or for another activity.
What are cryptocurrencies?
Cryptocurrencies are digital currencies that only exist digitally and with which you can make electronic payments. A system that differs in many aspects from traditional systems and that can increasingly be used in more industries as a form of payment.
In turn, cryptocurrencies can also be taken as an investment. Many people buy these and speculate with their value that varies every day.
Next, we will introduce you to the GTO table of cryptocurrencies. Do you know the traditional periodic table of elements? Well, here is something similar but with the theme of these virtual currencies.
As we can see, this table has several categories: Payments/Cryptocurrencies, Protocols/Exchanges/Interoperability, Fintech, Business/Enterprise, Platforms, Games/Media/Social, Privacy/Anonymity, and some more. Here are not all types of cryptocurrencies, but most and most important.
History and origin of cryptocurrencies
The first time a monetary cryptographic system was conceived was in 1983, it was called eCash and developed by the American cryptographer David Chaum. Later, in 1995, he invented DigiCash, a system that used cryptography to make transactions anonymously without being traceable by any body.
After those beginnings of transactions with the use of cryptography, many were interested in the subject. The concept of cryptocurrencies arose in 1998, almost into this new century, and was exposed by Wei Dai, who defined this new payment system with cryptography as the regulator. By 2009, the first cryptocurrency, called Bitcoin, emerged and remains the most popular to this day. This was invented by the pseudonymous developer Satoshi Nakamoto. From that moment on, cryptocurrencies grew all over the world, and they have diversified in a great way.
Today, they are already socially accepted and used by hundreds of millions of people. The market is on the rise and is increasingly useful within the communities.
How do cryptocurrencies work?
Cryptocurrencies are digital currencies with which electronic transactions can be carried out. These use a cryptographic encryption to guarantee the ownership of who is making the movement and thus prevent someone from meddling in it.
Movements with cryptocurrencies, unlike other systems, are not regulated or controlled by any institution nor do they need mediators. This makes transactions occur faster and there are no commissions.
There is an important concept in the cryptocurrency system is that of blockchain. This is a technology also called “chain of blocks” that makes it possible to create networks of devices without the need for a central server. Here all transactions between users are recorded, which must be accepted by the rest of the community upon entry.