Crypto Kids: A Beginner's Guide to Cryptocurrency for Children - страница 4

When this person receives a cube, he adds it to his box of cubes. All the people who store cryptocurrency have their own boxes with cubes that they can update and check to make sure that all transactions have been executed correctly.

In other words, when you send a cryptocurrency, your transaction is added to a block, which is then added to the chain of other blocks. This chain of blocks is called a blockchain. Each block contains a unique code that helps protect the blockchain from fraud and unauthorized access.

In addition, cryptocurrencies do not have a central governing body, such as a government or a bank. Instead, they work on the basis of a decentralized network, where network participants interact with each other directly, without intermediaries.

This makes cryptocurrencies more independent and secure, as they do not depend on a single management node, which can become the target of cyber-attacks.

Here’s how cryptocurrencies work in short. I hope this helped you understand the basics of cryptocurrency!

There are many different types of cryptocurrencies. Some of them are the most famous and popular, while others are less common.

Below we will look at some of the most common types of cryptocurrencies:

1. Bitcoin: Bitcoin is the most popular and well-known cryptocurrency. It was established in 2009 and uses blockchain technology to ensure the security and anonymity of transactions.

2. Ethereum: Ethereum is the second most popular cryptocurrency after Bitcoin. It also uses blockchain technology, but has a wider range of applications, including the creation of smart contracts.

3. Litecoin: Litecoin was created in 2011 and also uses blockchain technology. Its transactions are faster than Bitcoin’s and it has lower fees.

4. Bitcoin Cash: Bitcoin Cash was created in 2017 as a result of the division of Bitcoin into two separate cryptocurrencies. It has a larger block size, which allows you to process transactions faster.

5. Ripple: Ripple is designed to ensure fast and reliable transfer of money between countries and banks. It uses its own blockchain technology, but is not decentralized.

6. Tezos: This is a cryptocurrency created in 2018, which is based on the technology of self-managed smart contracts. Tezos also allows coin holders to participate in the management of the network and make decisions about its development.