Episode 2: How does Crypto / Blockchain Actually Work?

Welcome back to the CMG-auraspace Crypto Academy.

In this lesson, we are going to explore how cryptocurrency actually works.

Cryptocurrencies run on something called Blockchain Technology.

A Blockchain is a Decentralized network of computers that work together to verify and record transactions.

Think of it like a digital Ledger where every transaction is recorded and confirmed by multiple participants.

When someone sends cryptocurrency, the transaction is grouped into a block which is then verified by computers called nodes on the network.

Once verified, the block is added to the chain making the transaction permanent and unchangeable.

Unlike traditional banking which relies on a central Authority like a bank, Cryptocurrency relies on Decentralization.

This makes it harder to hack or manipulate because no single entity controls the network.

That's a quick overview of how cryptocurrency works.

Next time we will dive into the different types of cryptocurrencies you can use.

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