What is cryptocurrency?

Cryptocurrency is a digital token that uses cryptography for chaining together digital signatures of token transfers, peer-to-peer networking between users directly and decentralization.  In some cases the proof-of-work scheme is used to create and manage the currency.  These systems work without a central repository or single administrator.

Transactions using cryptocurrencies between users are verified by a network of nodes and recorded in a public distributed ledger called a blockchain by a process known as mining.  Cryptocurrencies are created only as a reward for the payment processing work called mining.

These transactions are only reversible through an additional transaction that is also documented.

*Blockchain is a public anonymous ledger that continuously records every cryptocurrency transaction and is verified through anonymous parties.

*Blockchain for Business is a blockchain built with the ability to allow you to exchange anything of value, whether it be a house or car, documents, videos and photos.  It is also a private interaction between invited members with the correct permissions who may participate in the exchanges that are run on smart contracts, business logic imbedded in the network to reduce disputes and increase trust between parties involved.  Also in blockchain for business you may regulate who verifies the transactions and exchanges.

What is mining?

Mining is a service done through the use of computer processing power. Miners are the record-keepers that maintain the blockchain by consistently verifying and collecting newly broadcasted transactions through different hashing algorithms (depending on which cryptocurrency it is mining) into a group called a block. Each block created is attached with the previous block by containing the previous block’s cryptographic hash, thus creating a blockchain.

A transaction consists of transferred value between two cryptocurrency wallets through a blockchain.  Each wallet has a private key or seed that is used to sign transactions which provides the mathematical proof that it came from the correct owner of the wallet.

When one user initiates a transaction, the user designates each address and the amount of cryptocurrency being transferred.  Users may transfer amounts to multiple addresses in one transaction.

Once the transaction is initiated, miners process those transactions.  Paying a fee is optional by the user to those miners processing and verifying the transaction, but transactions with a higher fee will be prioritized.