What is Crypto Currency? Crypto currency is a new form of transacting value based on a technology/idea called the, “Blockchain.” When we are talking about transacting value it is about trust. Do all parties involved believe that the other person will give them legitimate value for their value? Normally we view this entity as the bank we go to. They make sure that the dollars we are using to transact are legitimate, and if they aren’t, they guarantee us we will get the value back with legitimate dollars. They track that money goes from one account to another account and ensure honesty. The blockchain does this for crypto currency using math, instead of a human institution like a bank.
It all began in 2009 with the Bitcoin White Paper. Satoshi Nakamoto, whom we don’t know who that is, wrote the Bitcoin Whitepaper as a proposition to the world that there is a way to create a digital ledger than can be unchangeable and maintain accounts honestly, without human intervention. This is the blockchain. Bitcoin was created soon after.
With this ledger we now have a system of accounting for where coins are and that they are legitimate and that transactions to and from accounts are legitimate. There are no counterfeit coins and no false transactions, because math and all the blockchain nodes around the world hashing out the transactions to ensure the books are honest. Nobody can cook the books.
I access the blockchain, that is built up of thousands of computers around the planet, and using software, I request a new private key. The blockchain will recognize this private key due to the mathematic algorithm it uses for it’s address space, and now I have an account. I didn’t need to show anyone my social security number. I didn’t need to ask anyone’s permission. I only needed the knowledge to do it.
I now have an account on this ledger and we can use this ledger to track our transactions. I can send Bob as much value as I want, as long as it’s denominated in Bitcoin, and nobody can stop it. I can do this by mailing him a hardware wallet, like a Trezor, or by sending it to his public key digitally using the internet and software.
I recommend you search out your own bitcoin atm near you. Get a Trezor. Hire us for a consultation. Send yourself $20.00 USD from the ATM to your Bitcoin wallet. This will make things clear to you how important this idea is.
I will follow this up with a series on Crypto Currency and how to begin using it with more specifics.
Owner, Altha Technology