Simplified explanation of Cryptocurrencies
They are virtual currencies that started with Bitcoin and by now we have reached more than 1000 digital currencies
The Bitcoin coin was created by an unknown person until now
Digital currencies are based on a technology called blockchain technology, which is the basis for digital currencies, it is the data that are stored through a decentralized network of computers.
As through this technology and through digital currencies, we can easily transfer and receive money within minutes to and from anywhere and any person in the world without resorting to banks and without a large commission rate such as in banks
The technology is completely secure and is not governed by an institution or a central bank, as there is no central authority that controls it, unlike traditional databases
Each digital currency differs from the other in the target, as each digital currency has a specific project or goal
But all currencies through which we can transfer and receive money easily and quickly, and also we can invest in them in order to buy and sell when the price increases, and we can also trade digital currencies such as the stock market
Cryptocurrencies Like:
1-Ripple is the catchall name for the cryptocurrency platform, the transactional protocol for which is actually XRP, in the same fashion as Ethereum is the name for the platform that facilitates trades in Ether. Like other cryptocurrencies, Ripple is built atop the idea of a distributed ledger network which requires various parties to participate in validating transactions, rather than any singular centralized authority. That facilitates transactions all over the world, and transfer fees are far cheaper than the likes of bitcoin. Unlike other cryptocurrencies, XRP transfers are effectively immediate, requiring no typical confirmation time.
2-Ethereum is the second most popular cryptocurrency and the leading system for Blockchain-As-A-Service. Like Bitcoin, it provides a decentralized peer to peer electronic cash system. Unlike Bitcoin, Ethereum allows for the creation of smart contracts (i.e. programming code that auto-executes once certain conditions are fulfilled). And unlike Bitcoin, with Ethereum developers can build and deploy decentralized applications (e.g. an Ethereum-based decentralized Facebook).
3-Bitcoin is the head of the cryptocurrency pack. Its current market cap is USD 65 billion. The Bitcoin blockchain provides a decentralized peer-to-peer electronic cash system. Critics could say bitcoin has no intrinsic value, arguing it is a financial asset whose monetary value is entirely derived from people’s perception and, unlike fiat currencies, it has no central bank reserves backing
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