Cryptocurrency

MAY 24

Preliminary   > Science and Technology   >   Everyday S&T   >   Digital technology

Why in news?

  • Values of Bitcoin and other prominent cryptocurrencies have been extremely volatile in recent times.

About Cryptocurrency:

  • A cryptocurrency, crypto-currency, or crypto is a digital asset designed to work as a medium of exchange.
  •  In case of cryptocurrencies, individual coin ownership records are stored in a ledger existing in a form of a computerized database using strong cryptography to secure transaction records, to control the creation of additional coins, and to verify the transfer of coin ownership (Eg: Blockchain).
  •  It typically does not exist in physical form (like paper money) and is typically not issued by a central authority.
  • Cryptocurrencies typically use decentralized control as opposed to centralized digital currency and central banking systems.
  • When a cryptocurrency is minted or created prior to issuance or issued by a single issuer, it is generally considered centralized.
  • When implemented with decentralized control, each cryptocurrency works through distributed ledger technology, typically a blockchain, that serves as a public financial transaction database.
  • Bitcoin, first released as open-source software in 2009, is the first decentralized cryptocurrency.
  • Other cryptocurrencies include Ethereum, Litecoin, Cardano, Polkadot, Stellar, Chainlink etc

Prelims Question

Which of the following is not a crypto currency?
(a)Ethereum
(b)Shlayer
(c)Cardano
(d)Polkadot

Answer to Prelims question