Currency is the medium of exchange between two parties.A cryptocurrency is a medium of exchange using cryptography to secure the transactions and to control the creation of new units.First cryptocurrency was introduced in 2009 with the name of bitcoin.
Cryptography is a technique that uses mathematical techniques and computer resources to secure the information / data.It is a method of storing and transmitting data in a particular form so that only those for whom it is intended can read and process it.It involves writing or handling codes to secure information.
- It is the technology invented in 1991.
- It is just like distributed ledger.
- It maintains the transaction records.
- It controls the second use of coin.
- Miners are the most important part of a cryptocurrency network.
- They contribute their computing power to solve complex cryptography algorithm.
- They validate the transaction and record it into a public ledger network (Blockchain).
- They create the block and announced it to the network.
- They are rewarded with some coins.
A digital wallet is a software to store your coins. It is the simplest way to use a cryptocurrency. For blockchain transaction it rely on the blockchain hosted by the wallet company.You need a private key to access your assets and authorize transfers from your wallet.
- It is a digital currency.
- It is stored in digital wallet.
- Not regulated by any central institution.It is decentralized system of exchange.
- Does not require any personal information.
- fund transfers are done with minimal processing fees.It allows user to avoid the high charges by banks for internet online based transactions.
- It is very volatile.
- Peer-to-peer cryptocurrency network.
- Anonymity. It is completely anonymous and at the same time fully transparent.
- Transparency.The block chain keeps information about everything.
- Speed.The ability to send money anywhere and to anyone in a matter of minutes.