the definition

The so-called digital currencies or encrypted assets (Cryptocurrencies) emerged in an era where traditional cash transactions declined and were replaced by electronic transactions and payments. Despite initial skepticism due to their virtual and electronic nature, these currencies were well-received, accepted, and in high demand, driving up their prices to levels that It was an impossible requirement to meet, and it even found its way into cross-border financial transactions, piqueing everyone's attention and generating intrigue. We shall clarify the idea of digital currencies and provide guidance on handling them in this post.

Before learning about digital currencies or cryptocurrencies, let's learn about the science of cryptography, which is the method behind creating and using these currencies.

In the beginning, cryptography was used to safeguard data and information by encoding it so that only the intended recipients could read it, understand its hidden meaning, and possess the key to decipher the codes and decipher the original material. By splitting the word "cryptography" into the words "crypt," which means hidden, and "graphy," which means writing, one can understand that the term refers to text that has been written in a way that conceals its meaning.

That is, transferring data in a method that protects its content's confidentiality from its typical, widely distributed environment to a different, private context. This procedure is not brand-new. Before we arrived at digital currencies that are based on the same concept, the principle of encryption was utilized in numerous financial and information areas, as well as in many diplomatic and military contexts in the past.

In contrast to encryption, decryption involves utilizing the encryption key to restore the encrypted context back to the original content's typical, publicly readable state prior to the encryption process.

The process of encryption and decryption is now dependent on intricate, challenging mathematical methods due to advancements in mathematics, computing, and communications. It wouldn't be feasible to crack the code or solve these algorithms without first decoding them in the manner in which they were designed. This is even assuming that the science of doing so exists. through currently known and available information means, which is why the security and secrecy assumption has been validated up to this point.

The concept of creating cryptocurrencies—digital virtual currency that has been encrypted for safe and confidential transactions—was inspired by the ideas of encryption, decoding, and code analysis. Cryptocurrencies are created and stored electronically, without the need for a central bank or supervisory authority, and they lack the tangible physical entity that characterizes currencies. Other standard currency, or "fiat currency," that is issued by central banks and includes the US dollar (USD), the euro (EUR), and the Saudi riyal (SAR).

Around the late 1980s, a number of fuel supply or gas stations along the highway in the Netherlands introduced the concept of digital or electronic dealing as an alternative to the customary cash transaction.