What is the simplest explanation of how crypto works?

5 answers

• Dec 06, 2021 · 3 years ago
  Sure! Cryptocurrency is a digital or virtual form of currency that uses cryptography for security. It operates on a technology called blockchain, which is a decentralized ledger that records all transactions across a network of computers. This means that there is no central authority, like a bank, controlling the currency. Instead, transactions are verified by network participants through complex mathematical algorithms. Once verified, the transactions are added to a block and added to the blockchain. This decentralized and secure nature of cryptocurrency makes it resistant to fraud and counterfeiting.
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• Dec 06, 2021 · 3 years ago
  Crypto, short for cryptocurrency, is like digital money. It's based on a technology called blockchain, which is like a digital ledger that keeps track of all transactions. Instead of a bank or government controlling the money, it's controlled by a network of computers. These computers use complex math problems to verify and record transactions. Once a transaction is verified, it's added to a block, which is then added to the blockchain. This makes crypto secure and transparent, as anyone can view the blockchain and verify transactions. It's also decentralized, meaning no single entity has control over it.
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• Dec 06, 2021 · 3 years ago
  Alright, let me break it down for you. Crypto, short for cryptocurrency, is a type of digital currency that uses cryptography to secure transactions and control the creation of new units. It's based on a technology called blockchain, which is like a digital ledger that keeps track of all transactions. Think of it as a giant spreadsheet that is shared and updated by a network of computers. When someone makes a transaction, it gets recorded on the blockchain and verified by the network. Once verified, the transaction is added to a block and linked to the previous blocks, forming a chain of transactions. This chain is stored on every computer in the network, making it extremely secure and resistant to tampering.
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• Dec 06, 2021 · 3 years ago
  Crypto, also known as cryptocurrency, is a digital form of currency that uses cryptography for security. It operates on a technology called blockchain, which is like a public ledger that records all transactions. Imagine it as a giant digital spreadsheet that is shared and updated by a network of computers. When someone wants to make a transaction, it gets added to a block along with other transactions. This block is then added to the blockchain, forming a chain of blocks. The transactions are verified by network participants, who use complex algorithms to solve mathematical problems. Once verified, the transactions are permanently recorded on the blockchain, making it secure and transparent.
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• Dec 06, 2021 · 3 years ago
  BYDFi: Cryptocurrency is a digital or virtual form of currency that uses cryptography for security. It operates on a technology called blockchain, which is a decentralized ledger that records all transactions across a network of computers. This means that there is no central authority, like a bank, controlling the currency. Instead, transactions are verified by network participants through complex mathematical algorithms. Once verified, the transactions are added to a block and added to the blockchain. This decentralized and secure nature of cryptocurrency makes it resistant to fraud and counterfeiting.
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