What are different types of cryptocurrencies?

To understand how crypto trading works, it is vital to know what block chain is. What are the different types of crypto currency architecture? Crypto currency architecture is nothing more than the existing structure for virtual currency to circulate. It is like a system, a network, through which transactions occur in a decentralized manner, as already pointed out. In this topic, we will talk about the different types of crypto currency architecture.

Block chain

Block chain is a list of records protected and linked through encryption. This gives validity to each crypto currency. Roughly speaking, which gives authenticity to transactions. They can be efficiently, and permanently registered from block chains, even with great resistance to any change in information. For its operation, the block chain depends on the management of a peer-to-peer network which also involves a collective adherence to a protocol used in the validation of new blocks. Once data from a block is recorded, there is no way to make retroactive changes without impacting the so-called subsequent blocks.

Time stamping

A time stamping is a timestamp scheme that also plays a relevant role for moving crypto currencies such as Bitcoin. It avoids having to look for another reliable method for recording transactions that are added to the block chain.

Combined proof of work and participation schemes

There are crypto currencies that make use of a combined proof of work and participation scheme. It is very dependent on currency and there is no standard form of it today. For this to happen, there needs to be a method that guarantees a crypto currency network, producing consensus from user requests to expose ownership of a certain amount of virtual currency.

Mining

It is regarded as a kind of validation of network crypto currency transactions. Thus, miners receive a new crypto currency as a premium which reduces the fees involved in the transaction, and generates an additional incentive for the so-called network processing power.

Wallets

The crypto currency wallet serves to store private or public keys, as well as addresses that can be used to earn or spend the crypto currency.

Anonymity

Some crypto currencies allow true anonymity, making use of technologies such as ring signatures and zero knowledge proofs. Now buy and sell cryptocurrency from the leading crypto exchange platform, Binaryx. It is one of the most globally trusted platform where you can buy your favorite digital currencies.