Cryptographic currency is a transaction medium that uses cryptography to ensure the security of transactions and control the creation of marketing unit. It is a kind of digital currency (or virtual currency). It runs a set of equation open source code based on computers all over the world, which is generated by a large number of operations of computer graphics cards and CPU, and uses cryptography design to ensure the safety of all links in currency circulation. The design based on cryptography can make the encrypted currency only be transferred or paid by the real owner.
The biggest difference between cryptocurrency and other non-cryptocurrency is that the total amount is limited and the quantity is extremely scarce. Because the total open source code of this set of equations is limited, it must be obtained through the operation of CPU of computer graphics card.
Cryptographic currency is based on decentralized knowledge mechanism, which is opposite to the banking financial system that relies on centralized supervision system. It is not issued by legal tender institutions and is not controlled by the central bank.
The essence of decentralization comes from the blockchain technology using distributed books.
Second, blockchain?
Blockchain is a new application mode of distributed data storage, point-to-point transmission, knowledge mechanism, encryption algorithm and other computer technologies.
Blockchain is an important concept of Bitcoin. It is essentially a decentralized database. At the same time, as the underlying technology of Bitcoin, it is a series of data blocks related by cryptography. Each data block contains a batch of information about bitcoin online transactions, which is used to verify the validity of the information (anti-counterfeiting) and generate the next block.
Broadly speaking, blockchain technology is a brand-new distributed infrastructure and computing method. It uses blockchain data structure to verify and store data, uses distributed node identification algorithm to generate and update data, uses cryptography to ensure the security of data transmission and access, and uses intelligent contracts composed of automated script codes to program and manipulate data.
From the perspective of science and technology, blockchain involves many scientific and technical issues, such as mathematics, cryptography, Internet and computer programming. From the application point of view, simply speaking, blockchain is a distributed account book and database, which has the characteristics of decentralization, non-tampering, full traceability, traceability, collective maintenance, openness and transparency. These characteristics ensure the "honesty" and "transparency" of the blockchain and lay the foundation for the blockchain to create trust. The rich application scenarios of blockchain are basically based on the fact that blockchain can solve the problem of information asymmetry and realize cooperation, trust and concerted action among multiple subjects.