Cryptocurrencies are digital or virtual tokens that use cryptography to secure their transactions and to control the creation of new units. Cryptocurrencies are decentralized, meaning they are not subject to government or financial institution control. Bitcoin, the first and most well-known cryptocurrency, was created in 2009.
Cryptocurrencies are often traded on decentralized exchanges and can also be used to purchase goods and services. Bitcoin, for example, can be used to purchase items on Overstock.com, CheapAir.com, and other retailers.
What are Bitcoin and Ethereum?
Bitcoin and Ethereum are two of the most well-known cryptocurrencies. Bitcoin is the first and most well-known cryptocurrency, while Ethereum is a blockchain platform that allows for the creation of decentralized applications.
Bitcoin is a digital or virtual token that uses cryptography to secure its transactions and to control the creation of new units. Ethereum is a blockchain platform that allows for the creation of decentralized applications.
What is a blockchain?
A blockchain is a digital ledger of all cryptocurrency transactions. It is constantly growing as "completed" blocks are added to it with a new set of recordings. Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data. Bitcoin nodes use the block chain to differentiate legitimate Bitcoin transactions from attempts to re-spend coins that have already been spent elsewhere.
What is a cryptographic hash?
A cryptographic hash is a mathematical function that takes a variable-length input and produces a fixed-length output. In Bitcoin, the SHA-256 cryptographic hash function is used.
What is a Bitcoin node?
A Bitcoin node is a computer that participates in the Bitcoin network. Nodes that verify transactions and add them to the block chain are called miners.
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