Crypto Currencies are often referred to as digital Currencies but if that is the case then why do we have to create a new word called Crypto Currencies ? we could have used the word Digital Currency for Crypto Currencies as well.
So Let us understand the difference between these two terms in this post today.
So first of all I must tell that yes Crypto Currencies are also digital Currencies as well but there are difference between Crypto currencies and Digital Currencies that seperate them from one another.
Crypto Currencies are created on Blockchain technology and without Blockchain one cannot think of the existence of Crypto Currencies.
Crypto Currencies V/s Digital Currencies
1) While Digital Currencies are fully centralized , Crypto Currencies works on a decentralized network system.
2) In digital Currencies the transactions done are kept secret while in Crypto Currencies the transactions are visible to everyone.
3) Crypto Currencies are highly encrypted while digital currencies are not encrypted.
4) Digital Currencies use legal frameworks and strictly attach with them while in Crypto Currencies there are no legal frameworks.
For those who do not know about Blockchain here is a small introduction about it.
Blockchain is a distributed ledger system that is fully decentralised i.e no central authority owns it.
Thats all for this post from my side , I have shared something different today i hope everyone ll like it.
Happy Trading Everyone