| − | '''Cryptocurrency''' is an alternate form of currency which, like most modern money, has no actual value. It is not backed by gold or any other physical thing—instead, it is backed by the investment of others. [[Fiat currency|Unbacked money]] is only worth the value people put into it, and cryptocurrency was designed with this in mind. Most of the kinds are based on the [[proof-of-work]] model, which means that the value of the currency is based on the work others put into it. This work is done in the form of mining, which is the act of generating new blocks of crypocurrency. Only a few are based on the [[proof-of-stake]] model, in which it is earned by investing the currency itself. | + | '''Cryptocurrency''' is an alternate form of currency which, like most modern money, has no actual value. It is not backed by gold or any other physical thing—instead, it is backed by the investment of others. [[Fiat currency|Unbacked money]] is only worth the value people put into it, and cryptocurrency was designed with this in mind. Most kinds are based on the [[proof-of-work]] model, which means that the value of the currency is based on the work others put into it. This work is done in the form of mining, which is the act of generating new blocks of crypocurrency. Only a few are based on the [[proof-of-stake]] model, in which it is earned by investing the currency itself. |
| − | On the evening of January 3, 2009, a person going by the name of Satoshi Nakamoto released [[Bitcoin]], the first-ever cryptocurrency. This [[Bitcoin]] system which had been single-handedly created by him was composed in all of about thirty-one thousand lines of code.<ref>http://www.newyorker.com/magazine/2011/10/10/the-crypto-currency</ref> The new [[Bitcoin]] met with some success, and before long there were other cryptocurrencies being created. Many of these use a similar base to that of [[Bitcoin]], including [[LiteCoin]]. | + | On the evening of January 3, 2009, a person going by the name of Satoshi Nakamoto released [[Bitcoin]], the first-ever cryptocurrency. This [[Bitcoin]] system which had been created by him (or them) was composed in all of about thirty-one thousand lines of code.<ref>http://www.newyorker.com/magazine/2011/10/10/the-crypto-currency</ref> The new [[Bitcoin]] met with some success, and before long there were other cryptocurrencies being created. Many of these use a similar base to that of [[Bitcoin]], including [[LiteCoin]]. |