A few years ago, many people may not have known the term “cryptocurrency”. Because it was not as famous as it is now. However, many people around us still may not be aware what this cryptocurrency is all about? And for such people we are here providing basic information about cryptocurrency and ways to use these currencies. When we say the word cryptocurrency, we are not referring to some kind of currency involving a banking system or paper like currency like dollar bills. Instead, cryptocurrency is a digital asset used as a medium of exchange. People nowadays use this cryptocurrency for trading purposes. These currencies are block chain based platforms that are meant to be completely decentralized. Which means these currencies are not governed by any central bank or monetary authority. But it is maintained by a peer-to-peer community by computer network made up of machines or nodes. These cryptocurrencies are spent and received through cryptocurrency wallets. There are many well-known and famous cryptocurrency wallets like Cosmos Atom web Wallet and also Cosmos Atom Online Wallet. These wallets have stood the time and helped people in making payments and receipts possible for many people all around the world. Therefore, through this article we will help our readers by providing some important information about the features of cryptocurrencies and these cryptocurrency wallets.
Characteristics of Cryptocurrency
Every form of currency before cryptocurrency required a central authority that people had to trust, so that they can use it. But with cryptocurrency, each transaction does not have any authority. Everyone who uses this currency on the network has a copy of the ledger and so it is not necessary to trust a single entity. This decentralized ledger is known as the block chain. Hence, below are some of the important characteristics of cryptocurrency.
- Trustless – these cryptocurrencies are trustless because they were designed in a way that nobody has the necessity to trust anybody else in the network that needs to function.
- Immutable – this in simple term means cannot be undone. When it comes to cryptocurrency wallets like Cosmos wallet it is important to follow some basic principles. That it should be highly difficult to rewrite to history. And also should be impossible for anyone but the owner of the owned private key to move his own funds.
- Decentralized – these cryptocurrencies are politically decentralized and at the same time logically centralized. Which means these are not controlled by any central authority, but there is a simple and a common agreement which states that the system behaves like a single computer network.