What Crypto Means: Explanation, How It Works, and History!

People who don't fully understand the world of Crypto may wonder what Crypto means. This time, VCGamers will discuss what Crypto means, how it works, and the history of Crypto.

In short, Crypto is an abbreviation of Cryptocurrency which means Crypto currency.

However, there is a complete explanation of what Cryptocurrency means and how currency transactions work.

There are tons of Crypto money currently circulating. For curious Vicigers, let's see the discussion below!

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Explanation of What Crypto Means

According to Investopedia, Crypto comes from the word Cryptocurrency which means currency with cryptography. Crypto means cryptography, namely Blockchain technology and Currency means currency.

Literally, Cryptocurrency is Crypto currency. This cryptography is a method implemented to protect communication and information channels through code.

The concept of cryptography has existed since World War II. However, there are differences in the use of cryptography in the past and today.

By using cryptography, no one is able to manipulate the use of crypto currency. This means that cryptocurrencies cannot be counterfeited like conventional currencies.

There is a separate record of every Crypto transaction and these records are stored in a technology called Blockchain.

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How Crypto Works

Crypto currency transactions are not controlled by one particular company or bank institution. This means that Crypto currency has a decentralized aspect which means that no one party is an intermediary when transactions take place.

Crypto currency transactions are not in physical form like conventional paper currency, but are located on the internet and stored in the blockchain network.

Blockchain is a system that manages and regulates Crypto currency or digital currency transactions. This means that Crypto currency transactions are not regulated by third parties such as governments or banks.

The way Crypto works has three principles, namely encrypted, decentralized, and digital. Cryptocurrencies are not regulated by a state or central authority, so Cryptocurrencies are decentralized.

This means that Crypto currency management is fully carried out by Crypto currency users via the internet.

Although free and open, Crypto currency still has regulation in Indonesia. Cryptocurrencies are still allowed as investment instruments and as commodities by Bappebti.

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Crypto history

Cryptocurrency has actually been around since 1998. At that time, Wei Dai was the initiator of Cryptocurrency but there was no implementation because there was no mechanism to record every transaction.

This makes many people duplicate digital money as much as possible. The problem ended in 2008 when a mechanism was born that recorded every transaction.

In 2009, there was a Blockchain technology called Bitcoins. Besides Bitcoin, there are other Crypto currencies that were born after that.

There are Ripple, Ethereum, Cardano, Tron, and others. In conclusion, Bitcoin was the first Crypto currency and became a pioneer as Cryptocurrency at that time.

Thus the discussion about what Crypto means, how it works, and a brief history. For gaming top up needs, come on VC Market by VCGamers!