{"id":14157,"date":"2024-11-14T12:21:20","date_gmt":"2024-11-14T12:21:20","guid":{"rendered":"https:\/\/cryptoproguide.com\/%d0%be%d1%82%d0%ba%d1%83%d0%b4%d0%b0-%d0%b1%d0%b5%d1%80%d0%b5%d1%82%d1%81%d1%8f-%d0%ba%d1%80%d0%b8%d0%bf%d1%82%d0%be%d0%b2%d0%b0%d0%bb%d1%8e%d1%82%d0%b0-%d0%bf%d1%80%d0%be%d1%81%d1%82%d1%8b%d0%bc\/"},"modified":"2024-11-22T11:28:47","modified_gmt":"2024-11-22T11:28:47","slug":"where-cryptocurrency-comes-from-in-simple-words","status":"publish","type":"post","link":"https:\/\/cryptoproguide.com\/lt\/where-cryptocurrency-comes-from-in-simple-words\/","title":{"rendered":"Where cryptocurrency comes from in simple words"},"content":{"rendered":"<img decoding=\"async\" class=\"page__image wp-post-image\" src=\"https:\/\/cryptoproguide.com\/wp-content\/uploads\/2024\/10\/d0bed182d0bad183d0b4d0b0-d0b1d0b5d180d0b5d182d181d18f-d0bad180d0b8d0bfd182d0bed0b2d0b0d0bbd18ed182d0b0-d0bfd180d0bed181d182d18bd0bc_671c36456d758.jpeg\" alt=\"Where cryptocurrency comes from\" width=\"330\" height=\"200\" \/>\n<p>As of September 23, 2021, thousands of different digital coins have been launched. New altcoins are being developed every day. These are all cryptocurrencies released after bitcoin. However, none has an official physical expression. For this reason, different digital assets are used as electronic means of payment. However, it is not clear to everyone where cryptocurrency comes from. Therefore, it is important to understand this issue.<\/p>\n<h2 id=\"osobennosti-kriptovalyuty\">Features of cryptocurrency<\/h2>\n<p>Virtual money is a safe means of payment. They are based on 2 main principles of cryptography:<\/p>\n<ul>\n<li><strong>Digital Signature.<\/strong> Based on asymmetric public key encryption. The principle realized the main goal of exploiting the power of one-way functions. The private key held by the recipient easily decodes the public key. However, it is very difficult to do the opposite.<\/li>\n<li><strong>Sequential hashing.<\/strong> The principle helps to encrypt information, making changes in the structure of the blockchain impossible. This is due to the sequence of <span class=\"tlp-tooltip tlp-tooltip--top\" data-tooltip=\"{&quot;id&quot;:&quot;118668&quot;,&quot;text&quot;:&quot;u041cu0430u0442u0435u043cu0430u0442u0438u0447u0435u0441u043au0438u0439 u0430u043bu0433u043eu0440u0438u0442u043c, u043au043eu0442u043eu0440u044bu0439 u043cu043eu0436u0435u0442 u043fu0440u0435u043eu0431u0440u0430u0437u043eu0432u0430u0442u044c u043fu0440u043eu0438u0437u0432u043eu043bu044cu043du044bu0439 u043cu0430u0441u0441u0438u0432 u0434u0430u043du043du044bu0445 u0432 u0441u0442u0440u043eu043au0443 u0444u0438u043au0441u0438u0440u043eu0432u0430u043du043du043eu0439 u0434u043bu0438u043du044b, u0441u043eu0441u0442u043eu044fu0449u0443u044e u0438u0437 u0441u043bu043eu0432 u0438 u0431u0443u043au0432&quot;,&quot;more&quot;:&quot;https:\/\/crypto.ru\/hash-v-blokchejne\/&quot;}\">hash<\/span> generation. Each link of the chain has a unique identifier. It is the sum of the hash functions of the previous and present blocks.<\/li>\n<\/ul>\n<p>This makes cryptocurrency virtually invulnerable to attackers. Digital coins are only encrypted information. An attacker is able to intercept the data. But there&#8217;s no way to decrypt it. Only the recipient of the transaction can decode the information with his private key.<\/p>\n<blockquote>\n<p>Cryptocurrency is reliably protected from counterfeiting. Only the unique sum of hashes of the previous and present blocks is included in the blockchain. It cannot be duplicated or copied.<\/p>\n<\/blockquote>\n<p>The main feature is the absence of an official physical expression. Tangible bitcoin coins were issued on a small scale (often only in dozens of pieces) by different organizations. These <span class=\"tlp-tooltip tlp-tooltip--top\" data-tooltip=\"{&quot;id&quot;:&quot;117032&quot;,&quot;text&quot;:&quot;u041au0440u0438u043fu0442u043eu0430u043au0442u0438u0432u044b u0431u0435u0437 u0441u043eu0431u0441u0442u0432u0435u043du043du043eu0433u043e u0431u043bu043eu043au0447u0435u0439u043du0430&quot;,&quot;more&quot;:&quot;https:\/\/crypto.ru\/chto-takoe-tokeny\/#chto-takoe-token&quot;}\">tokens<\/span> were not assigned a face value. They are common souvenirs.<\/p>\n<figure id=\"attachment_51593\" class=\"wp-caption aligncenter\" aria-describedby=\"caption-attachment-51593\"><img alt=\"Where cryptocurrency comes from in simple words\" decoding=\"async\" class=\"lazy wp-image-51593 size-full\" src=\"https:\/\/cryptoproguide.com\/wp-content\/uploads\/2024\/10\/d0bed182d0bad183d0b4d0b0-d0b1d0b5d180d0b5d182d181d18f-d0bad180d0b8d0bfd182d0bed0b2d0b0d0bbd18ed182d0b0-d0bfd180d0bed181d182d18bd0bc_671c364a76209.jpeg\" \/>\n<figcaption id=\"caption-attachment-51593\" class=\"wp-caption-text\">Bitcoin coins<\/figcaption><\/figure><h3 id=\"otlichiya-ot-fiatnyh-deneg\">Differences from fiat money<\/h3>\n<p>The national currency of different states can not be compared with digital assets. Banknotes can be converted into electronic form. However, non-cash funds are only a form of <span class=\"tlp-tooltip tlp-tooltip--top\" data-tooltip=\"{&quot;id&quot;:&quot;118645&quot;,&quot;text&quot;:&quot;u041du0430u0446u0438u043eu043du0430u043bu044cu043du044bu0435 u0432u0430u043bu044eu0442u044b: u0440u0443u0431u043bu0438, u0434u043eu043bu043bu0430u0440u044b, u0435u0432u0440u043e u0438 u0434u0440u0443u0433u0438u0435&quot;,&quot;more&quot;:&quot;https:\/\/crypto.ru\/fiat-i-kriptovalyuta\/&quot;}\">fiat<\/span> expression.<\/p>\n<p>In order for them to appear in the account, it is necessary to make a deposit with physical money. This can be done through a banking organization or a payment <span class=\"tlp-tooltip tlp-tooltip--top\" data-tooltip=\"{&quot;id&quot;:&quot;117029&quot;,&quot;text&quot;:&quot;u041fu0440u0438u043bu043eu0436u0435u043du0438u0435 u0434u043bu044f u0442u043eu0440u0433u043eu0432u044bu0445 u043eu043fu0435u0440u0430u0446u0438u0439 u043du0430 u0431u0438u0440u0436u0435&quot;,&quot;more&quot;:&quot;https:\/\/crypto.ru\/torgovlya-bitcoin\/#interfeys-torgovogo-terminala&quot;}\">terminal<\/span>.<\/p>\n<blockquote>\n<p>Most cryptocurrencies are not issued by the central banks of countries. Virtual money is generated in the blockchain.<\/p>\n<\/blockquote>\n<p>Today, few countries recognize them and allow citizens to pay with them (Japan, Australia, UK, Canada, Germany, El Salvador and a few others). Fiat, on the other hand, is issued by the national currency system.<\/p>\n<div id=\"quiz-120116\" class=\"quiz quiz--template-card_full\" data-quiz_name=\"\u0422\u043e\u043f 5 \u0441\u0430\u043c\u044b\u0445 \u0431\u043e\u0433\u0430\u0442\u044b\u0445 \u0432\u044b\u043c\u044b\u0448\u043b\u0435\u043d\u043d\u044b\u0445 \u043f\u0435\u0440\u0441\u043e\u043d\u0430\u0436\u0435\u0439\" data-quiz_id=\"120116\">\n<div class=\"quiz__start-button quiz-template__card_full\">\n<h2 id=\"istoriya-poyavleniya\">History of appearance<\/h2>\n<p>Specialists since 1983 tried to realize electronic payments on the principles of cryptography. However, information about the first successful attempt to create something similar, which as a result became BTC, appeared only in 2008.<\/p>\n<figure id=\"attachment_51588\" class=\"wp-caption aligncenter\" aria-describedby=\"caption-attachment-51588\"><img alt=\"Where cryptocurrency comes from in simple words\" decoding=\"async\" class=\"lazy wp-image-51588 size-full\" src=\"https:\/\/cryptoproguide.com\/wp-content\/uploads\/2024\/10\/d0bed182d0bad183d0b4d0b0-d0b1d0b5d180d0b5d182d181d18f-d0bad180d0b8d0bfd182d0bed0b2d0b0d0bbd18ed182d0b0-d0bfd180d0bed181d182d18bd0bc_671c364b3b712.jpeg\" \/>\n<figcaption id=\"caption-attachment-51588\" class=\"wp-caption-text\">P2P electronic payment system<\/figcaption><\/figure>\n<p>It is not known exactly who made this virtual coin. From the published data, the following was clear. The development of digital money was conducted since 2007 by a person or a group of people under the nickname Satoshi Nakamoto. Officially, the cryptocurrency appeared in 2009.<\/p>\n<p>It took 2 years to create the Bitcoin payment system. Testing confirmed the performance of Satoshi Nakamoto&#8217;s network. He was able to transfer 10 bitcoins to the account of Hal Finney (the first BTC miner).<\/p>\n<p>No one has been able to reveal the identity of the person or people under the alias Satoshi Nakamoto. History knows several dozen assumptions about the actual developer of the payment system. However, none of them has not been fully proven.<\/p>\n<h2 id=\"vidy-kriptovalyut\">Types of cryptocurrencies<\/h2>\n<p>Objectively, there are only 3 types of digital money:<\/p>\n<ul>\n<li><strong>Bitcoin.<\/strong> The first crypto asset in history.<\/li>\n<li><strong>Altcoin.<\/strong> Represents any cryptocurrency that uses a unique protocol. Also, an altcoin is a <span class=\"tlp-tooltip tlp-tooltip--top\" data-tooltip=\"{&quot;id&quot;:&quot;118652&quot;,&quot;text&quot;:&quot;u041cu043eu0434u0438u0444u0438u043au0430u0446u0438u044f u043au043eu0434u0430 u043au0440u0438u043fu0442u043eu0432u0430u043bu044eu0442u044b u0434u043bu044f u0441u043eu0437u0434u0430u043du0438u044f u0434u0440u0443u0433u043eu0439 u043fu043eu0445u043eu0436u0435u0439 u043cu043eu043du0435u0442u044b&quot;,&quot;more&quot;:&quot;https:\/\/crypto.ru\/chto-takoe-fork-kriptovalyuty\/&quot;}\">fork<\/span> or <span class=\"tlp-tooltip tlp-tooltip--top\" data-tooltip=\"{&quot;id&quot;:&quot;118651&quot;,&quot;text&quot;:&quot;u0418u0437u043cu0435u043du0435u043du0438u0435 u043au0440u0438u043fu0442u043eu0432u0430u043bu044eu0442u043du043eu0433u043e u043fu0440u043eu0442u043eu043au043eu043bu0430, u043du0435u0441u043eu0432u043cu0435u0441u0442u0438u043cu043eu0435 u0441 u043fu0440u0435u0434u044bu0434u0443u0449u0438u043cu0438 u0432u0435u0440u0441u0438u044fu043cu0438&quot;,&quot;more&quot;:&quot;https:\/\/crypto.ru\/hardfork\/&quot;}\">hardfork of<\/span> a digital asset.<\/li>\n<li><strong>Token is a unit of account.<\/strong> Replaces securities in the digital world. Keeps a balance in some assets. Some tokens are created on the ERC-20 standard blockchain protocol (from Ethereum).<\/li>\n<\/ul>\n<p>You can read more about the types of digital assets here.<\/p>\n<p>Hardfork is an update of the rules of the protocol (its improvement). It is characterized by the separation of the network. 2 independent systems appear. Hardfork is a hard separation of the blockchain. The result is always the same &#8211; the emergence of a new cryptocurrency. Nodes (from Latin nodus &#8211; &#8220;node&#8221;) turn out to be unable to process blocks in its network.<\/p>\n<h2 id=\"otkuda-beretsya-kriptovalyuta\">Where cryptocurrency comes from<\/h2>\n<p>Digital money doesn&#8217;t just appear. Cryptocurrency is generated through the work of miners and verification nodes. They perform different functions and are not interchangeable. Both groups of nodes are rewarded for creating and validating blocks.<\/p>\n<p>Miners are the mining nodes of the network. They provide computing power to the system. This allows the blockchain to remain functional. <span class=\"tlp-tooltip tlp-tooltip--top\" data-tooltip=\"{&quot;id&quot;:&quot;118656&quot;,&quot;text&quot;:&quot;u0414u043eu0431u044bu0447u0430 u043au0440u0438u043fu0442u043eu0432u0430u043bu044eu0442 u2014 u0441u043eu0437u0434u0430u043du0438u0435 u043du043eu0432u044bu0445 u0431u043bu043eu043au043eu0432 u0432 u0431u043bu043eu043au0447u0435u0439u043du0435 u0438 u043eu0431u0435u0441u043fu0435u0447u0435u043du0438u0435 u044du043cu0438u0441u0441u0438u0438&quot;,&quot;more&quot;:&quot;https:\/\/crypto.ru\/chto-takoe-majning\/&quot;}\">Mining<\/span> &#8211; unraveling blocks (links in the chain). The process is constant. People buy expensive equipment to do this. The work of miners is rewarded for each block mined.<\/p>\n<p>Validators &#8211; verification nodes of the network. These nodes participate in staking, that is, they provide their finances to keep the blockchain running. No computing power is required.<\/p>\n<p>Validation is the process of signing links within the network, that is, confirming them. Validation nodes receive a reward for each block mined. This approach is used in blockchains with the Proof-of-Stake consensus algorithm.<\/p>\n<h3 id=\"mayning\">Mining<\/h3>\n<p>The term came into Russian from English and actually retained its literal meaning &#8211; mining. Because of this, the necessary equipment is often called a drilling rig.<\/p>\n<p>Mining is the support of the functioning of the network. Mining nodes create new blocks in the chain. The main resource used is the computing power of computer equipment. Most mining farms run on GPUs (graphics cards). It is cheap and efficient to use external GPUs.<\/p>\n<figure id=\"attachment_51589\" class=\"wp-caption aligncenter\" aria-describedby=\"caption-attachment-51589\"><img alt=\"Where cryptocurrency comes from in simple words\" decoding=\"async\" class=\"lazy wp-image-51589 size-full\" src=\"https:\/\/cryptoproguide.com\/wp-content\/uploads\/2024\/10\/d0bed182d0bad183d0b4d0b0-d0b1d0b5d180d0b5d182d181d18f-d0bad180d0b8d0bfd182d0bed0b2d0b0d0bbd18ed182d0b0-d0bfd180d0bed181d182d18bd0bc_671c364bc8c4a.jpeg\" \/>\n<figcaption id=\"caption-attachment-51589\" class=\"wp-caption-text\">Home mining farm<\/figcaption><\/figure>\n<h4 id=\"osobennosti\">Features<\/h4>\n<p>Miners and entire mining centers cannot be subdued or blocked. The cryptocurrency system is decentralized. The network is supported by its participants.<\/p>\n<p>Any owner of computing equipment can become a mining node. To do this, you need to properly configure your equipment and connect it to the blockchain. There are many relevant guides on the Internet.<\/p>\n<p>Mining is anonymous. The mining node is not obliged to provide personal data. It is impossible to track the participants of the entire network.<\/p>\n<p>Mining is limited by the algorithms set by the miner. It is impossible to mine more coins than the system allows. Experts have estimated that the last BTC will be mined in 2140.<\/p>\n<p>Mining is a type of business. Mining nodes are rewarded. Earned cryptocurrency is put on the market. It can be sold and exchanged, withdrawn into fiat or paid for purchases.<\/p>\n<h4 id=\"sposoby-mayninga\">Methods of mining<\/h4>\n<p>There are many methods to mine cryptocurrency. The owner of the node can choose them at his personal discretion. Here are a few ways:<\/p>\n<ul>\n<li><strong>Mining pools.<\/strong> Previously, a single computer could quietly create blocks on the network. However, with the increase in complexity, this task has become impossible. Therefore, miners combine computing power into pools &#8211; a single server. Hundreds of participants work on solving a single blockchain link. All miners in the pool are rewarded. The total profit is divided among them according to the principle of &#8220;how much power invested, how much digital assets earned&#8221;. The figures are counted in percentages.<\/li>\n<li><strong>ASIC mining.<\/strong> Major digital assets like bitcoin, etherium and lightcoin can be mined using special equipment. It is called ASIC &#8211; integrated circuit chip. It solves only one task. To mine ETH coins, you need to buy an Ethereum ASIC. It cannot be used for mining BTC.<\/li>\n<li><strong>Mining on GPU (external graphics processor).<\/strong> The most popular method. Such mining involves the exploitation of video cards. The method allows you to mine coins that have resistance to integrated circuits. Such cryptocurrencies are called ASIC-resistant.<\/li>\n<li><strong>Mining on the CPU (central processing unit).<\/strong> At the dawn of the development of BTC was the only mining method. It was proposed by bitcoin developer Satoshi Nakamoto. This method exploits the power of the central processing unit. It is characterized by lower power efficiency and speed. As of September 23, 2021, few coins can be mined using this method.<\/li>\n<li><strong>Mobile mining.<\/strong> Inefficient and not popular. It is implemented by altcoins with small <span class=\"tlp-tooltip tlp-tooltip--top\" data-tooltip=\"{&quot;id&quot;:&quot;118659&quot;,&quot;text&quot;:&quot;u0421u0442u043eu0438u043cu043eu0441u0442u044c u0432u0441u0435u0445 u0446u0438u0444u0440u043eu0432u044bu0445 u043cu043eu043du0435u0442 u0432 u043eu0431u0440u0430u0449u0435u043du0438u0438 u043du0430 u0442u0435u043au0443u0449u0438u0439 u043cu043eu043cu0435u043du0442&quot;,&quot;more&quot;:&quot;https:\/\/crypto.ru\/kapitalizaciya-kriptovalyuty\/&quot;}\">capitalization<\/span> to recruit users on the network.<\/li>\n<\/ul>\n<p>Every year ASIC equipment is updated and becomes more powerful.<\/p>\n<p>Older machines are proving to be uncompetitive. ASIC mining is unprofitable after the release of new machines, so you need to buy fresh equipment.<\/p>\n<figure id=\"attachment_51590\" class=\"wp-caption aligncenter\" aria-describedby=\"caption-attachment-51590\"><img alt=\"Where cryptocurrency comes from in simple words\" decoding=\"async\" class=\"lazy size-full wp-image-51590\" src=\"https:\/\/cryptoproguide.com\/wp-content\/uploads\/2024\/10\/d0bed182d0bad183d0b4d0b0-d0b1d0b5d180d0b5d182d181d18f-d0bad180d0b8d0bfd182d0bed0b2d0b0d0bbd18ed182d0b0-d0bfd180d0bed181d182d18bd0bc_671c364c60162.jpeg\" \/>\n<figcaption id=\"caption-attachment-51590\" class=\"wp-caption-text\">Integrated Circuit<\/figcaption><\/figure>\n<h4 id=\"povyshenie-slozhnosti\">Increasing complexity<\/h4>\n<p>The hash rate of the network is increasing daily. Logically, the emission should be accelerating. However, this does not happen because of the unsophisticated algorithm for increasing the complexity of mining. As the hash rate of the network (the number of calculations per second) increases, the task of crypto miners becomes more difficult.<\/p>\n<p>The difficulty of mining shows how many calculations are needed to solve a block. On the Ethereum network, this number is over 9 quadrillion &#8211; approximately 9,250,000,000,000,000,000,000,000,000,000,000,000,000. One hash equals one computation.<\/p>\n<div class=\"table-wrapper\">\n<table id=\"tablepress-424-no-2\" class=\"tablepress tablepress-id-424\">\n<tbody>\n<tr class=\"row-1 odd\">\n<th class=\"column-1\">Coin<\/th>\n<th class=\"column-2\">Network hash rate<\/th>\n<th class=\"column-3\">Mining complexity<\/th>\n<\/tr>\n<\/tbody>\n<tbody class=\"row-hover\">\n<tr class=\"row-2 even\">\n<td class=\"column-1\">Ethereum<\/td>\n<td class=\"column-2\">700.69 TH\/s<\/td>\n<td class=\"column-3\">9.25 PH<\/td>\n<\/tr>\n<tr class=\"row-3 odd\">\n<td class=\"column-1\">Bitcoin GOLD<\/td>\n<td class=\"column-2\">2.12 MH\/s<\/td>\n<td class=\"column-3\">180.29 KH<\/td>\n<\/tr>\n<tr class=\"row-4 even\">\n<td class=\"column-1\">Zcash<\/td>\n<td class=\"column-2\">5.16 GH\/s<\/td>\n<td class=\"column-3\">55.7 MH<\/td>\n<\/tr>\n<tr class=\"row-5 odd\">\n<td class=\"column-1\">Ethereum Classic<\/td>\n<td class=\"column-2\">25.66 TH\/s<\/td>\n<td class=\"column-3\">336.92 TH<\/td>\n<\/tr>\n<tr class=\"row-6 even\">\n<td class=\"column-1\">Monero<\/td>\n<td class=\"column-2\">2.87 GH\/s<\/td>\n<td class=\"column-3\">319.07 GH<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<h4 id=\"oblachnyy-mayning\">Cloud mining<\/h4>\n<p>The method is somewhat similar to pools. Only this method does not require the purchase of computing equipment. In this case, it must be rented.<\/p>\n<p>Mining enterprises are large remote data processing centers. They have at their disposal all kinds of equipment for mining (GPU, CPU, ASIC and others). Sometimes such organizations provide some of the equipment to renters for a fee.<\/p>\n<p>If a blockchain participant cannot buy computing equipment, then it is better to borrow a part of the hash power of a large mining center for temporary use.<\/p>\n<h2 id=\"ico\">ICO<\/h2>\n<p>Initial Coin Offering &#8211; Initial Coin Offering is a way to attract investors. The concept is identical to the term &#8220;crowdsale&#8221;.<\/p>\n<p>In an ICO campaign, a fixed number of coins are sold. However, it is not clear where the new cryptocurrency comes from. It is developed specifically to attract funding and further support for the project. For ICO-coins are generated one-time or in an accelerated mode.<\/p>\n<h3 id=\"chto-eto-takoe\">What it is<\/h3>\n<p>ICO is an analog of IPO (initial public offering of shares). Both procedures are aimed at attracting investors. Only crowdsale is not everywhere controlled by state regulators.<\/p>\n<p>However, the buyer of coins can be sure of their receipt. Organizations conducting ICOs are required to officially register and provide investors with documentation.<\/p>\n<h3 id=\"prichiny-provedeniya\">Reasons for holding<\/h3>\n<p>The purpose of an ICO is to obtain funding for the development of a cryptocurrency project. Many digital assets are initially created to solve specific problems of network participants. For example, the TWT token is made by the developers of the Trust Wallet cryptocurrency wallet to give users the opportunity to:<\/p>\n<ul>\n<li>Participate in project management.<\/li>\n<li>Work with collectible coins.<\/li>\n<li>Support developers of new dApps (decentralized applications).<\/li>\n<li>Use discounts on project services.<\/li>\n<\/ul>\n<p>To realize their ideas, developers need funding. Therefore, an ICO is held in the process of creating the project. Investors interested in the prospects can put money into the organization by buying digital assets.<\/p>\n<h2 id=\"buduschee-kriptovalyuty\">The future of cryptocurrency<\/h2>\n<p>Digital money is evolving rapidly. Stablecoins (assets backed by traditional currencies with a peg to their exchange rate) like USDT are starting to replace some of the transfers between countries. Global economic conditions allow for this to happen. Experts predict an average annual growth rate of 11.2% for digital money.<\/p>\n<p>Payment systems have become more willing to conduct transactions involving such assets. This ensures constant growth of the digital money market. Soon, the recognition of cryptocurrency as internet acquiring will have a positive impact on the adoption in people&#8217;s lives.<\/p>\n<p>By 2030, 99.9% of the present projects are expected to disappear. A part will cease to meet the practical needs of the network participants. However, every day a new cryptocurrency appears. Therefore, the total number of different digital assets will only increase.<\/p>\n<p>Blockchain technology is greatly simplified by new software. This makes it possible to promote cryptocurrencies noticeably more efficiently. You don&#8217;t need any special knowledge to use digital money.<\/p>\n<h2 id=\"chasto-zadavaemye-voprosy\">Frequently Asked Questions<\/h2>\n<div class=\"faq-block\">\n<div class=\"faq-block__item\">\n<div class=\"faq-block__item-question\">\n<p>\u2754 Can digital money exist outside of the blockchain?<\/p>\n<\/div>\n<div class=\"faq-block__item-answer\">\n<p>It is possible. In 2012, the first concept of a virtual coin was developed that runs on a DAG, a system that acts as a blockchain.<\/p>\n<\/div>\n<\/div>\n<div class=\"faq-block__item\">\n<div class=\"faq-block__item-question\">\n<p>\ud83d\udd0d What does Satoshi Nakamoto do after bitcoin?<\/p>\n<\/div>\n<div class=\"faq-block__item-answer\">\n<p>The BTC developer published his last post under this pseudonym on April 26, 2011. In it, he talked about moving on to his next projects. However, it is not known what Satoshi Nakamoto is doing.<\/p>\n<\/div>\n<\/div>\n<div class=\"faq-block__item\">\n<div class=\"faq-block__item-question\">\n<p>\u2049 What problem did BTC solve?<\/p>\n<\/div>\n<div class=\"faq-block__item-answer\">\n<p>Technically, bitcoin has removed the intermediaries represented by banks. From the point of view of society &#8211; solved the problem of the old financial system by decentralizing assets on the Internet.<\/p>\n<\/div>\n<\/div>\n<div class=\"faq-block__item\">\n<div class=\"faq-block__item-question\">\n<p>\ud83d\udcbb How do pools work?<\/p>\n<\/div>\n<div class=\"faq-block__item-answer\">\n<p>When one of the candidates (investors) gets a blockchain signature, the server informs the participants to create a new part in the blockchain. The reward is divided among the miners according to one of 13 systems.<\/p>\n<\/div>\n<\/div>\n<div class=\"faq-block__item\">\n<div class=\"faq-block__item-question\">\n<p>\u2753 What is a share or a balloon?<\/p>\n<\/div>\n<div class=\"faq-block__item-answer\">\n<p>It is a conventional designation of a certain number of calculations to obtain a signature. In simple words, a share is the share of hashes offered by one miner in relation to the total number of variants.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"wprprt-info wprprt-info--template-1\">\n<p>Is there a mistake in the text? Highlight it with your mouse and press <span class=\"wprprt-info__btn\">Ctrl<\/span> + <span class=\"wprprt-info__btn\">Enter.<\/span><\/p>\n<\/div>\n<div class=\"page__author-box\"> <\/div>\n<\/div>\n<\/div>\n\n\n<p><em>Author:<\/em> <a href=\"https:\/\/cryptoproguide.com\/lt\/saifedean-ammous-content-writer\/the-amount-of-transactions-on-the-cardano-network-surpassed-the-52-billion-mark-in-one-week\/\">Saifedean Ammous<\/a>, an expert in cryptocurrency economics.<\/p>","protected":false},"excerpt":{"rendered":"<p>As of September 23, 2021, thousands of different digital coins have been launched. New altcoins are being developed every day. These are all cryptocurrencies released after bitcoin. However, none has an official physical expression. For this reason, different digital assets are used as electronic means of payment. However, it is not clear to everyone where [&hellip;]<\/p>","protected":false},"author":2,"featured_media":14158,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"class_list":["post-14157","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrencies"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.8 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Where does cryptocurrency come from in simple words - where did it come from, ways of emergence and historical facts<\/title>\n<meta name=\"description\" content=\"Find out where cryptocurrency comes from. \u26a0 All the ways of its emergence, differences from fiat money, historical facts, as well as the prospects of development in the future.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoproguide.com\/lt\/where-cryptocurrency-comes-from-in-simple-words\/\" \/>\n<meta property=\"og:locale\" content=\"lt_LT\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Where does cryptocurrency come from in simple words - 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