Cryptocurrency:

• People have always valued unique and irreplaceable things. A unique thing always has a demand and acclaims a price.
• A cryptocurrency is a unique virtual (digital) asset designed to work as a medium of exchange using cryptographic algorithm.
• This algorithm secures the transactions by recording it in blockchain and controls the creation of additional units of the currency.
• Cryptocurrency is also called as cryptocoins, ecash, alternative currencies or virtual currencies and are classified as a subset of digital currencies.
• Cryptocurrency can be defined as distributed accounting system based on cryptography, storing information about the state of ownership in conventional units.
• The state of ownership of a cryptocurrency is related to individual system blocks called “portfolios”.
• Only the holder of the corresponding private key would have control over a given portfolio and it is impossible to issue the same unit twice.
• The function of cryptocurrency is based on technologies such as Mining, Blockchain, Directed Acyclic Graph, Distributed register (ledger), etc. The information about the . transaction is usually not encrypted and is available in clear text.

Bitcoin:

Bitcoin is the most popular and the first decentralized cryptocurrency. Bitcoin is the most popular cryptocurrency, but there are many other cryptocurrencies, which are referred to as “altcoins”.

Altcoins:

1. Altcoins is the collective name for all cryptocurrencies that appeared after Bitcoin. The early Altcoins Litecoin and Namecoin appeared in 2011.

2. From 2014, the 2nd generation of cryptocurrency appeared, such as Monero, Ethereum and Nxt. These crypto-coins have advanced features such as hidden addresses and smart contracts.

3. In terms of trade, the creation of cryptocurrencies may be related to the ICO (Initial Coin Offer) procedure.

Block chain:

• Block chains are an open distributed book that records transactions of cryptocurrencies between any two parties in an efficient and verifiable manner.
• It is a continuously growing list of records, called blocks, which are linked to each other and protected using encryption algorithm. Each block typically contains a hash pointer as a link to a previous block. It records data about every transaction with its date and time.
• Once recorded, the data in any given block cannot be altered without the alteration of all subsequent blocks.