Differences Between Digital Currencies, Virtual Currencies, and Cryptocurrencies

Even though they sound alike and function in a similar manner, digital, virtual, and cryptocurrencies are in fact different. Listed below are the main points of difference between the three types of currencies: All virtual currencies and cryptocurrencies are digital currencies. Not all digital currencies, however, belong to those two… Continue reading

Types of Virtual Currencies

Depending on their operating network, virtual currencies are classified as follows:  Closed virtual currency A closed virtual currency, as the name suggests, operates in a controlled and private ecosystem. It cannot be converted into another virtual currency or into a real-world fiat currency. Examples of closed virtual currencies are currencies… Continue reading

What Is Bitcoin & Bitcoin Mining?

Bitcoin is a decentralized digital currency created in January 2009. It follows the ideas set out in a white paper by the mysterious and pseudonymous Satoshi Nakamoto. The identity of the person or persons who created the technology is still a mystery. Bitcoin offers the promise of lower transaction fees than traditional online… Continue reading

Advantages and Disadvantages of Cryptocurrency

Advantages Cryptocurrencies hold the promise of making it easier to transfer funds directly between two parties, without the need for a trusted third party like a bank or credit card company. These transfers are instead secured by the use of public keys and private keys and different forms of incentive systems, like Proof of Work or Proof of Stake…. Continue reading

What Is a Blockchain?

A blockchain is a distributed database that is shared among the nodes of a computer network. As a database, a blockchain stores information electronically in digital format. Blockchains are best known for their crucial role in cryptocurrency systems, such as Bitcoin, for maintaining a secure and decentralized record of transactions. The… Continue reading

What Is Cryptocurrency?

A cryptocurrency is a digital or virtual currency that is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend. Many cryptocurrencies are decentralized networks based on blockchain technology—a distributed ledger enforced by a disparate network of computers. A defining feature of cryptocurrencies is that they are generally not issued by any… Continue reading

What is Virtual Currency?

A virtual currency is a digital representation of value only available in electronic form. It is stored and transacted through designated software, mobile, or computer applications. Transactions involving virtual currencies occur through secure, dedicated networks or over the Internet. They are issued by private parties or groups of developers and… Continue reading