Because the encrypted economy is something new to the world, as Cryptocurrencies. Many confuse digital currencies with Cryptocurrencies. So in this article we will address the fundamental differences between the two, or cryptocurrencies and digital currencies ?.
digital currencies VS. cryptocurrencies
What are digital currencies?
Digital currency is the money used on the Internet. It is digital money in the form of numbers. It has no material equivalent in the real world. But for digital currencies all the characteristics of traditional money. Just as local money, you can obtain, transfer or exchange them for other currencies.
You can use it to pay for goods and services, such as filling phone and Internet accounts, buying online, paying for bills …
Digital currencies have no geographic or political boundaries. Transactions may be sent from anywhere to any point in the world. Digital accounts and portfolios can be considered bank deposits.
What are Cryptocurrencies?
Cryptocurrencies are a variety of digital currencies but have their own encrypted system. Cryptocurrency is an origin used as a means of exchange. It is considered reliable because it is based on a complex encrypted system based on cryptography.
One of the basic goals of cryptography is to make communication safe and protected. It creates and analyzes algorithms and protocols allow encrypts data so how was what kind does not change any information, or Tzmj that seen by third parties. Encryption is a combination of a large number of different sciences, so mathematics is defined as the basic process of encryption. Mathematics is responsible for the reliability of encrypted algorithms and protocols.
Cryptocurrencies have a system and a protocol called a Blockchain. This means that no third authority controls all transactions, transactions, transfers, and transmissions in the network.
What is Blockchain?
Between cryptocurrencies and digital currencies. the first teams are decoded decentralized without any central authority and are not relying on intermediaries to manage, and the second currencies central and digitally traded on the Internet, and its central system is subject to intermediaries.