Cryptocurrencies

As mentioned earlier, Blockchain technology has been exploited more in the creation of cryptocurrencies. Cryptocurrencies are virtual currencies that are decentralized and use a peer to peer network. Since they are decentralized, they are not controlled from a single point or by a single entity. Transactions are conducted directly, that is, from the sender to the receiver without any intermediary. To achieve this, cryptocurrencies rely on peers to have a ledger with all transactions that they can use to validate new transactions. Therefore, if you are sending X amount of digital currency, the peer network will determine whether you can perform the transaction. If the transaction is validated by the peer network, it will go through and will be added to the distributed ledger that all peers have. The following diagram summarizes the process of making a cryptocurrency...