What are digital currencies or cryptocurrencies

بواسطة | يونيو 9, 2022 | غير مصنف | 0 تعليقات

In an era when the usual cash transactions have been scaled back to take their place by Electronic transactions and payments, the so-called digital currencies or encrypted assets Cryptocurrencies, appeared.

Despite the doubts that hovered around them in their beginnings, being virtual/electronic, but received an increasing welcome and acceptance and demand that raised the prices of cryptocurrencies. It was a standard that was not possible to make its way to international financial transactions.

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The concept of Cryptography

cryptocurrencies

Before learning about digital currencies or cryptocurrencies, let’s learn about cryptography, which is attributed to the way those currencies are created and used.

Cryptography is a way to make information and data safe through using codes so that only those who are targeted by the information are able to read them or know their content and have the cipher key that makes them able to handle those codes to identify the clear and original information.

 

The difference between Decryption and cryptocurrencies

With encryption, comes decryption, which is the return of the encrypted context to the image of the initial content This is done using the encryption key in the usual and generally readable context prior to the encryption process.

With the development of mathematics, algorithms, computer science and communications, encryption and decryption processes rely on complex algorithms that are difficult to decipher,

Even the process of decoding or decoding these algorithms – not deciphering them in the way they were prepared from the beginning.

 

How did the idea of ​​creating digital currencies begin

Proceeding from the idea of ​​encryption and decoding, as well as coding analysis, the idea of ​​creating digital currencies was born cryptocurrencies.

The cryptocurrencies have been encrypted for secure and confidential transactions, as it is created and stored electronically without regulatory oversight or central bank oversight, and has no physical entity like other traditional currencies.

And is not called mandatory cash issued by central banks such as Saudi riyal (SAR), euro (EUR) or US dollar (USD).

 

The beginning of digital currencies and cryptocurrency

cryptocurrencies

David Chaum, an American programmer had a good idea and an attempt to simulate coins or paper into token money that has the same ability to handle and deal in payments and move from hand to hand safely and privately.

So he created an algorithm formula through which money could be passed between the sender and the receiver in a hidden and untracked way through a token currency that he called at the time chaum.

 

The beginning of cryptocurrency

After the path became paved for the creation of cryptocurrencies, and with the development of technology and information, complex encryption protocols Cryptographic is based on advanced mathematical and computer engineering principles, making it nearly impossible to break the theory.

 Cryptocurrency programmers rely on highly complex systems to secure and encrypt data transmissions.

In conclusion, today, there are more than 1,324 encrypted cryptocurrencies in the market, which, despite being an electronic virtual currency, have spread in electronic transactions on the Internet and have been accepted in many international stores, especially bitcoin.

 

References

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