Many people hear “cryptocurrency” and have a vague concept of what it means, but few know fundamental aspects surrounding it. Basically, it’s a digital asset acting as a medium of exchange using cryptography to secure transactions.
Important characteristics include: no physical form, supply is not determined by central banks, networks are decentralized and supply exists solely within them, and it functions according to restrictions established when first created. Every alt coin must possess these attributes in order to truly be defined as “crypto”.
While crypto acts as currency, it’s not the same as offering dollar bills to pay for something, instead living inside a database and secured by aforementioned cryptography. Essentially, very complex math algorithms keep the system impregnable.
Database security is also provided via a peer-to-peer network available on a public ledger for everyone to monitor, while still keeping personal information anonymous. Furthermore, it assures transactions don’t get doubled, limiting scamming abilities of shipping coins twice. When sending crypto, it’s actually submitting a restricted entry into the network, which confirms it’s only executed once. Since transfers may not be halted, ensuring proper address beforehand is vital.
Almost all cryptos feature identical properties: irreversible entries, anonymity, extremely fast and safe, possibility to send anywhere in the world, and a limited supply is dictated through the system. These are set forth by networks to guarantee one person, bank, or government can’t just decide to print more, consequently protecting against manmade hyperinflation.
A block is a group of entries which are processed in the network by a blockchain and ultimately “solved” by miners or nodes, the chain acting as the “hash” connecting them. To solve this cryptologic puzzle (complex equation), nodes find the solution that attaches blocks together, requiring vast amounts of time and energy to complete.
Miners are rewarded for labor with cryptocurrency, as their efforts keep the network rapidly executing entries (transactions), which props up the entire platform. This is why completion speed fluctuates occasionally, as changes to timeframes are directly linked to respective crypto prices, ultimately proving that without incentives, everything would simply cease to survive.
Obviously, this is the easiest way to send and withdraw funds from online sportsbooks, Bitcoin, Bitcoin Cash, Ethereum and Litecoin unquestionably accepted as options. Anyone not presently holding these can buy some through “crypto wallets” such as Kraken or equivalent, making the process effortless and eliminating gargantuan credit card fees at the same time. In addition, payouts are much quicker than waiting for bank wires or checks by mail that inevitably take 6 weeks to arrive.