What is a digital currency?
Posted: Wed Jan 22, 2025 10:19 am
Digital currencies emerged in 2009 and have since become very popular around the world. Together with digital accounts and wallets, they represent the digital transformation of the financial market . Bitcoin, one of the best-known cryptocurrencies, has grown dramatically in recent years, becoming the currency with the largest market capitalization (around 632 billion dollars). For example, a single Bitcoin is worth approximately US$33,000.
Cryptocurrencies operate on a decentralized network, which allows slovenia phone number list from one person to another without the intermediation of a bank. Since they are not subject to the regulation of monetary systems or a financial authority, there is practically no bureaucracy involved in their negotiation.
In terms of security, digital businesses often use blockchain technology to ensure the security of transactions. This process works as follows: when there is any movement involving cryptocurrencies, it is gathered into blocks that connect to others through codes, forming a large “network” (hence the name blockchain).
This network of codes is encrypted, that is, an algorithm is applied to encode them and make it impossible to access their original data unless a specific security key is applied that decodes this data.
For investors, digital currencies remain in their digital wallets and, when a transaction needs to be made, they are decoded and used. Today, there are several digital currencies in the world. Here are some of them:
Cryptocurrencies operate on a decentralized network, which allows slovenia phone number list from one person to another without the intermediation of a bank. Since they are not subject to the regulation of monetary systems or a financial authority, there is practically no bureaucracy involved in their negotiation.
In terms of security, digital businesses often use blockchain technology to ensure the security of transactions. This process works as follows: when there is any movement involving cryptocurrencies, it is gathered into blocks that connect to others through codes, forming a large “network” (hence the name blockchain).
This network of codes is encrypted, that is, an algorithm is applied to encode them and make it impossible to access their original data unless a specific security key is applied that decodes this data.
For investors, digital currencies remain in their digital wallets and, when a transaction needs to be made, they are decoded and used. Today, there are several digital currencies in the world. Here are some of them: