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What are cryptocurrencies and how do they work?

Cryptocurrencies are a type of digital medium of exchange and that in recent times has given a lot to talk about for its price.

Léelo en Español / 5-7 mins.


Cryptocurrencies are a type of digital medium of exchange and that in recent times has given a lot to talk about for its price. Also called cryptocurrencies or crypto assets , they fulfill the function of a currency. However, it is something totally digital, using cryptographic methods to secure your financial transactions, control the creation of new units, and verify the transfer of assets.

The first cryptocurrency was Bitcoin created by Satoshi Nakamoto, who published an article in 2009 describing a P2P payment system that he called Bitcoin. After this, the creator published the first version of the software that allows managing the currency's network. The value of each cryptocurrency is variable, and that in recent times there is a speculation similar to stock market assets.

How do they work

The cryptocurrency system is based on a decentralized computer network , which is supposed to be spread all over the world. The second concept is that of the miners, people who are part of the nodes, and who have the incentive that every time new Bitcoins are generated they are distributed among those who are part of these nodes.

Over time, more cryptocurrencies of various characteristics have been created. Some have been positioning themselves for years as robust and popular alternatives such as Ethereum, Litecoin, and others like it. Dogecoin is a new cryptocurrency based on a meme. But since Elon Musk spoke of it assuring that it is the people's cryptocurrency, its value has not stopped growing.





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