A guide on how to understand Bitcoin and Cryptocurrency?
Although Bitcoin is one of the most sought after terms (according to Google), it is a very technical issue for many people and can be too technical for non-Geeks. However, now there are hundreds of cryptonecuriences and more and more people are beginning to want to know how they are able to work possibly by a bankers’ disguise, which is a completely different discussion.
It is difficult to obtain an explanation of a man of layman without having to use technical terms, such as “secret keys”, “digital keys”, “Wallet Digital” and “Cryptocurrency”, so I will do everything possible to keep things as straight as Possibly they can.
Fiat’s concept of money, that is, the paper currency, was formulated to be easier for people to exchange goods or services to replace barter, as this will be limited to an exchange between two parts arranged , while money allows you to provide your service or goods, then buy any service or goods that require another or others.
Therefore, it would argue that Bitcoin is the equivalent of the 21st century to barter, as it functions as an exchange of goods or services directly between two parts arranged. The barter had to be based on each promise and confidence, to provide and deliver the promised goods or services.
Today with Bitcoin or any other cryptomacean, each Party would require a single file or a unique key to exchange the value agreed with each other.
By having a single key or file, it becomes easier to maintain a record in each transaction. However, this also comes with problems.
Now, the barter is the simple exchange of skills or assets, since I have already said, the modern equivalent, or Bitcoin is susceptible to security violations, that is, theft or piracy of files, this is where a “wallet of cryptocurrencia “in the equation to ensure its transactions
Basically, you need a safe place for your purchases and participations of Cryptocurrency / Bitcoin. This is where the need for a hardware wallet comes from.
So now that it has written / recorded which address it holds what amount of bitcoins and then updated each time a transaction is made, the file is known as “The Blockchain”, and maintains a record of all transactions made with Bitcoin.