Cryptocurrency 101

Cryptocurrency

The concept of cryptocurrency, which some see as the currency of the future and which has become very popular in recent years, entered our lives in 2009, 12 years ago.

Before moving on to a detailed explanation about this virtual asset, which has attracted so much attention by everyone, we first need to know the concepts of crypto and cryptology in order to be better understood.

Cryptology, according to its meaning in the dictionary, means the science or study of secret writings, encrypted documents. We can call this the science of encryption in the simplest terms. When it comes to cryptocurrency, it ensures that crypto coins are encrypted by a special system, sent securely to the recipient, and data can be accessed by deciphering this encryption system. Once we have learned the concept of cryptology, we are ready to learn more about what cryptocurrencies are.

What is Cryptocurrency?

The first cryptocurrency was created in 2009 by a programmer nicknamed Satoshi Nakamoto on the internet as Bitcoin. After Nakamoto brought this idea to life, Bitcoins, which had no value for a long time, became valuable over time.

Cryptocurrency is a form of encrypted money that can be exchanged online in exchange for products or services. They have no physical counterpart and can be spent and transferred via debit cards and credit cards. In a way, they are digital currency. Cryptocurrencies work with a technology called blockchain. Blockchain is a decentralized technology spread across multiple computers that manages and records transactions.

Production Phase

After learning what cryptocurrency is, one of the first questions that comes to mind is how it is produced. To summarize, cryptocurrencies are not dependent on a central authority or government, they are completely user-based. Each cryptocurrency has a certain production limit. The more money produced, the more difficult the transactions that need to be resolved to produce cryptocurrencies.

The technique used in the production process of cryptocurrency is called cryptocurrency mining. We can say that cryptocurrency mining is the process of solving mathematical problems. If we think of this as deep digging for gold, software is also trying to solve these math problems to find cryptocurrency. Anyone with an adequate technological system can solve these math operations and generate cryptocurrencies.

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