A cryptocurrency is a type of digital currency. It uses cryptography to regulate how people transfer them, how they’re created, and how secure they are. The first of its kind was Bitcoin, created in 2009.
In just a few years, more than 1,500 cryptocurrencies have appeared, all offering something a little different. But what are they? We explore a few, what they're being used for and why everyone is so excited.
A cryptocurrency is a digital currency. It uses cryptography to regulate how people transfer them, how they're created, and how secure they are. Oh, and last but not least, it doesn't need a central bank or government to control or manage them.
Cryptocurrencies weren't created just to be an alternative to your $ and £. They can be used for lots of different things.
⚡Ethereum - Ether is used to power transactions and Dapps on its network.
💻 Golem - the GNT is used to rent computer power.
💽 Siacoin - is used to rent hard drive space.
We explore that further below.
Bitcoin was the first currency that solved some of the key problems of creating a currency that just lives online. But it wasn't without its flaws.
Subsequent cryptocurrencies are trying to fix those problems, or come up with new use cases for cryptocurrencies.
We're just at the beginning of the cryptocurrency age. Many currencies will come and go, some will become incredibly valuable, others might drop to zero.
But one thing is for certain, cryptocurrencies are here to stay.