Cryptocurrencies are digital assets intended to facilitate peer-to-peer financial transactions and smart contracts on the internet in a decentralized manner. This was first achieved by solving the “double spend” problem and using advanced crypto graphy and programming techniques.
Block chains
Crypto currencies record transactions on public ledgers called “block chains”. They are the first form of digital currencies where an intermediary is not needed in sending funds from one person to another.
Wallets
Crypto currencies do not have a physical address. Wallets do not hold crypto currencies. The wallets keep only the crypto graphic keys necessary to access its cryptocurrencies on the relevant block chain.
Knots
Crypto currencies do not “move” from one location to another when you send or receive them. They only change ownership on the relevant block chain, which is stored on nodes around the world and secured using crypto graphy. Anyone with sufficient resources can install and use a node.
Tokens
Some cryptocurrencies – Augur, Gnosis, Enzyme Finance, Tether – run on other block chains and are often referred to as “tokens”.
Privacy
Due to the public aspect of block chains, cryptocurrencies are only pseudo-anonymous. A common goal for many crypto currencies is improving user privacy, although only some crypto currencies prioritize this goal (Monero, Zcash).
Confirmations
“Double spend” can occur in some rare cases, which is why we ask for a number of confirmations before crediting crypto currency deposits .
Summary
Crypto currencies are a decentralized financial ledger that is shared across the globe. The best-known examples of crypto currencies are Bitcoin (BTC) and Ethereum (ETH), but there are countless others
View the full list of crypto currencies available on Kraken .
Resources
Here you will find links to quality video content explaining Bitcoin.
Beginner
Bitcoin.org: What is Bitcoin?
Intermediate
How Bitcoin Works Under the Hood
