Crypto money is a monetary system (like Turkish Lira, American Dollar). But unlike these currencies, the purpose of creating crypto money is to provide digital information exchange with a process that is made possible by certain cryptography principles. The purpose of cryptography is to secure money transactions and control the creation of new funds. The first crypto money is Bitcoin in 2009. Today, hundreds of different crypto coins are used, and these are often referred to as alternative crypto money.
In other words, crypto is like an electric current that is converted into code by lines with a monetary value. Even simpler, crypto money is a digital currency.
Unlike central banks, where governments have determined the value of their currency, no government has control over crypto money. Because there is no center to control this money.
How to Buy Crypto Money
Crypto money is made through trading platforms. You can purchase crypto money by depositing funds in various ways to the platforms that provide this service. You should also use crypto money exchanges whenever you want to get crypto money at any price.
Many crypto coins (Bitcoin, Ethereum, etc.) are designed to be produced less in time, thus creating a market value. This is different from the currencies used by states. Because the government can print more money at any time on favorable terms and thus increase the inflation. For example, in the Bitcoin market, there will be no more than 21 million units of units.
Although there are hundreds of crypto currencies, most of them have emerged using one of two protocols; POW or PoS. All Crypto Coins are kept by crypto-money miners who have prepared their computers or ASIC machines to ensure the verification and processing of money transactions.
Crypto Money History
The first crypto is Bitcoin, which was found in 2009 by a software developer named Satoshi Nakamoto. It uses POW as a bitcoin system.
Following Bitcoin, in April 2011 the first altcoin Namecoin was set up to make internet censorship difficult through a decentralized DNS. In October 2011, Litecoin was launched for the first time using Scrypt instead of SHA-256 as its encryption method. With this feature people can dig up Litecoin without special equipment such as ASIC machines used for Bitcoin mining.
At the end of 2013, Litecoin was recognized by the media and reached a market value of $1 billion. Ripple is also based on the same protocols as Bitcoin in 2011.
Crypto Money Security
The security of the crypto money consists of two parts: first to find the congested hash intersections a work done by miners, the second and more likely, a miner with more than 51% excavation power of the network can replace the global blockchain system, create an alternative master book, and this is called the 51% attack. At this point, even the attacker can do is limited. It can take back money transactions or block other money transactions.
Crypto coins are also less confiscated by the state. All crypto coins are anonymous in view. And some units have created new systems to provide an anonymity.
Hash in Crypto Moneys
Crypto money digging power is measured by the hash per second. A 1 kH / s hardware will load 1,000 hashes per second. 1 MH / s means one million hash per second and 1 GH / s means one billion hash per second. When miners successfully solve a block, a new hash occurs. The Hash algorithm translates this large amount of data into a fixed length. If you are familiar with the code and know the algorithm, you can parse it and remove the data. But in the eyes of the ordinary one, these hashes seem to be compressed numbers and are almost impossible to solve.
SHA VS SCRYPT
Although Bitcoin and many other crypto currencies are excavated using SHA-256, Litecoin and others use Scrypt. These are the largest hash functions, but besides some of the crypto coins are used by the functions such as scrypt-N, x11 are also available.
Other hash functions were found to solve the problems of SHA-256. In the past people could dig Bitcoin with a graphics card (GPU), and that was a lot of energy. As Bitcoin became more popular day by day, the ASIC SHA-256 machine was found, and the GPU and the digging method were dumped.
In order to give an idea of how powerful these machines are: by digging 4 GPUs, the ASIC machine digs 6 TH / s and consumes 2200 kW / h while capturing a digestion rate of approximately 3.4 MH / s and consuming 3600 kW / h. Therefore, the GPU digging method has become unusable, but some people are concerned about the safety of the network. With fewer people investing profitably in home computers, the network has lost its centrality. Scrypt mining was implemented with the promise of being resistant to ASIC's memory problem.
Scrypt hashishes require a great deal of memory. While GPUs are already designed to handle this situation, ASIC machines are not designed in this direction. But Scrypt mining requires a lot of energy and in order to cope with this problem, scrypt-ASIC machines are produced. At this stage, Litecoin considered changing the POW system to prevent ASIC mining. Scrypt thought that the POW system was more effective than SHA-256. In Bitcoin, 1 block is dissolved in 10 minutes and 1 block in Litecoin is solved in 2.5 minutes.
Is Crypto Money Legal?
Crypto coins are legal in many countries - except Iceland and Vietnam - they are not exempt from restructuring and restructuring. China has banned financial institutions from controlling the Bitcoins, and Russia has banned the purchase of goods from any unit other than the Russian Ruble, despite the fact that crypto coins are legal.
Auxiliary Source: koinbulteni.com