Cryptocurrency (crypto currency) is a form of digital money that is designed to be secure and, in many cases, anonymous.
It is a currency associated with the internet that uses cryptography, the process of converting legible information into an almost uncrackable code, to track purchases and transfers.
Crypto currencies emerged as a side product of another idea. The bitcoin was initially developed as a P2P electronic cash system. There are over 500 crypto currencies out there but only a handful are worth considering.
Each crypto currency user owns a wallet where the crypto currencies can be recorded, send and receive to other wallet users.
To change from standard currencies (EUR/USD etc) to crypto currencies, a Crypto Currency exchange is needed. Refer to Crypto Currency Exchanges
What is Bitcoin?
The Bitcoin is a worldwide crypto currency and digital payment system. The crypto currency was issued by Satoshi Nakamoto, an unknown programmer/group of programmers, and was released as an open-source solution in 2009
The transactions take place between users directly in a peer-to-peer communication without an intermediary. Verification is performed by network nodes and recorded in a public distributed ledger called a blockchain. A ledger is a log book containing all transactions which cannot be modified. Each block contains typically a hash pointer as a link to a previous block, a time stamp and transaction data. This ledger is not held by a single person but distributed on different systems, hence the bitcoin title of a decentralized digital currency
Those who approve a transaction validity are called miners and this introduced the term mining and rewards. The first person that verifies a transaction gets rewarded with bitcoins, which can later be exchanged for other currencies, products, and services.
Bitcoin is accepted by several merchants nowadays and the numbers keeps on increasing.
Lately, bitcoin was hardforked and bitcoin cash was created. This is still at it’s infancy and some are a bit skeptic about this. We at cryptocasheasy.com are monitoring this new development and keep you updated.
What is Ethereum?
Ethereum is an open-source and public platform, based on the blockchain distributed computing system. Ethereum was proposed by Vitalik Buterin in Q4 2013 and was launched in July 2015 following an online crowdsale. The crypto currency features smart contract functionality. Smart contracts are designed to avoid the service of the a middleman (notary, lawyers) helping users exchange, in a conflict-free and transparent way, money, property, shares and more. Ethereum provides a decentralized EVM, Ethereum Virtual Machine, which can execute scripts using an network of public nodes distributed around the globe.
The participant nodes that verify Ethereum transactions are rewarded with a crypto currency token called “ether”, which can be transferred between accounts. To mitigate spam and allocate resources on the network, Ethereum introduced an internal transaction pricing mechanism, “Gas”. Gas measures how much “work” an action or set of actions takes to perform (similar to number of hours is required to perform a task).