Difference bewteen cryptocurrency and digital currency
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Cryptocurrency is an asset used as a means of exchange and it is usually considered reliable because it is based on cryptography. It creates and analyze the algorithms and protocol so no information is changed or even interrupted during the conversation by the third parties.
Digital currency exists only in the digital form, it does not have any physical equivalent in the real world. It has all the characteristics of traditional money. It does not have political or geographical boarders transactions can be sent from one place and received in another place or point in the world.
Structure, Digital currencies are centralized, there are a group of people and computers that regulates the state of the transactions in the network,. Cryptocurrencies are decentralized and the regulations are made by the majority of the community.
Anonymity, Digital currencies requires user identification, You will have to upload your photo and some documents issued by the authorities. Cryptocurrencies do not require any of that
Transparency, Digital currencies are not transparent, cryptocurrencies are transparent and everyone can see the transactions of any user since all the revenue streams are in the public
Digital currency exists only in the digital form, it does not have any physical equivalent in the real world. It has all the characteristics of traditional money. It does not have political or geographical boarders transactions can be sent from one place and received in another place or point in the world.
Structure, Digital currencies are centralized, there are a group of people and computers that regulates the state of the transactions in the network,. Cryptocurrencies are decentralized and the regulations are made by the majority of the community.
Anonymity, Digital currencies requires user identification, You will have to upload your photo and some documents issued by the authorities. Cryptocurrencies do not require any of that
Transparency, Digital currencies are not transparent, cryptocurrencies are transparent and everyone can see the transactions of any user since all the revenue streams are in the public
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Answer:
cryptocurrencies are built on the blockchain
Explanation:
Digital currency is a digital format of fiat money whereas cryptocurrencies are built on the blockchain. ... Since cryptocurrencies like the bitcoin are not managed by any authority like the RBI in India, or the US Federal Reserve in the US, its price fluctuates drastically, and wildly swing in value.
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