What are digital currencies?
Digital currencies are money used on the Internet.
Digital money exists only in the digital form. It doesn’t have any physical equivalent in the real world. Nevertheless, it has all the characteristics of traditional money. Just as classic fiat money, you can obtain, transfer or exchange it for another currency. You can use it to pay for the goods and services, such as mobile and Internet communication, online stores and others. Digital currencies don’t have geographical or political borders; transactions might be sent from any place and received an any point in the world.
Actually, digital accounts and wallets may be regarded as bank deposits.
What are cryptocurrencies?
Cryptocurrencies are a variety of digital currencies.
Cryptocurrency is an asset used as a means of exchanging. It is considered reliable because it’s based on cryptography.
One of the cryptography’s primary objectives is communications and how to make them secure. It creates and analyzes the algorithms and protocols so no information is changed or interrupted during the conversation by third parties. Cryptography is a mix of a large number of different sciences, with mathematics as the basic. It’s math that attaches the severity and reliability to algorithms and protocols.
Cryptocurrencies use Blockchain and a decentralized ledger. It means that no supervisory authority controls all the actions in the network. This comes at the expanse of all the users.