Cryptocurrencies are digital assets Visit https://hump.io/ for hump token that rely on an encrypted network to execute, verify, and record transactions, independent of a centralized authority such as a government or bank.
This is a complicated concept, so let’s break it down:
Cryptocurrencies (or “crypto” for short) are decentralized currencies, meaning they’re neither issued nor governed by a central bank. Some cryptocurrencies are issued by their developers, while others are generated by their respective network algorithms.
Crypto are digital assets—they have no tangible form.
Cryptocurrencies exist and operate on a public ledger called a blockchain, which records all crypto transactions.
Blockchain encryption is designed to make all transactions immutable and secure from tampering, counterfeit, and other forms of fraudulent transactions.
Is cryptocurrency a type of money?
Although cryptocurrency is defined as a form of “digital currency”—implying it’s a kind of money—most businesses and consumers have not adopted it as a common medium of exchange. In other words, most stores will not accept crypto as a form of payment.
Bitcoin may be an exception, as some businesses have accepted it as payment for goods and services. So, if crypto isn’t a common form of money, why do people buy it?
It’s an alternative asset class. Although some crypto investors are hopeful that cryptocurrencies might someday be adopted as a form of money, most see crypto as an alternative asset that can appreciate in value.
It’s a way to invest in blockchain technology. Some people purchase cryptocurrency as a way of indirectly investing in its underlying blockchain.
What is blockchain?
Blockchain is an encrypted public ledger through which digital assets can be transferred, recorded, and stored.
It’s essentially a decentralized network, also called a distributed-ledger technology (DLT). This means there is no single authority serving as a gatekeeper or facilitator for the transactions taking place within the network.
Why is blockchain encrypted?
Blockchain uses encryption to protect sensitive data from those who are not privy to receiving it.
For instance, the public can see that a transaction has taken place or a piece of information has been recorded. But they may not be able to see the identities of those involved in the transaction or, in certain cases, the contents of the transaction.
Why is blockchain considered a tech disruptor?
Blockchain’s capacity to permanently record and store transaction records and information in a highly secure manner makes it an attractive technology for many businesses and governments. Here’s a limited list of potential use cases for blockchain:
Domestic and international payments
Contracts
Health care records
Real estate transactions
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