Cryptocurrency With Analogy

There is an interesting analogy to understand what it is cryptocurrency. 100 years ago the people of Yap, an island in the Pacific ocean, or commonly referred to Micronesia using discs large stone as a means of exchange or money. The images on this page show how big the disc rock.

Yep and Stone Discs People Yap is using the stones to finance needs great them like a dowry, get married and hold the intent-the intent of the other. Because of the size-the size of the stone which is very large and can not be moved, then the island's inhabitants could not and did not want to bother to move it. They find a way that is most effective for them to just do the exchange of ownership with the way it was announced in front of the general public, which information the possession of a stone that becomes public knowledge.
Well, because the possession of a stone known by the public and could not be moved carelessly, then it makes the theft or fraud is very difficult to do.
Every resident will not be able to use a stone other people because everyone knows who is the owner of the stone. Every resident that has a stone such discs will not be able to use the same stone for twice the transactions because everyone will also know. And most importantly, the residents of the island of Yap will never be able to forge a tool of exchange because they have to carve and hollow out the stone first where none of the residents on the island who could do it.
With circumstances like that, the actual inhabitants of the island of Yap has found a financial system that is great. But unfortunately, not developed in larger and more advanced.
The presence of Cryptocurrency in the world of global financial is actually to answer the needs of the exchange system are the same as what was done by the inhabitants of Yap, but in a larger scale and more efficiently.
Consequently, one of the cryptocurrency called bitcoin it may be said to be in a stationary position does not move, they remain silent and are in the ledger (general ledger) called the blockchain. Anyone in the world that can access the internet can check out great books here. Because anyone can track and search information about the ownership of an asset, then the potential for cheating will be very can be minimized.
First, a person will not be able to spend bitcoin belongs to someone else, because everyone knows who the owner of the bitcoin of the information that is in the book before.
Second, a person will not be able to spend bitcoin as much as two times to perform the transaction, because the network ledger was continuously renew the information data and there is only one ledger which is managed by the public autonomously.
Third, one cannot falsify a bitcoin, because to create a bitcoin a person miners (the term for the seekers of bitcoin through mining) are required to solve problems in an algorithm-a mathematical algorithm that is constantly renewed in a period of 10 minutes. Any miners who manage to solve a math problem that will receive new bitcoins as a reward and most of all there is no way to falsify the answers of such questions. So the concern is can or cannot, right or wrong in answering the questions.
Transparency is the main key of the stone disks of Yap and Cryptocurrency. All the information needed is there and available to be known to the public. Anyone can observe and validate whether there is a payment from the owner that indeed-indeed has the right to use such coins. So in essence, this system does not require trust between the people who bertranksaksi and interact using this tool, because it is a system which eliminates the possibility for the occurrence of cheating.
Hopefully the article less useful this can slightly help to improve the understanding of the dear reader about what is a Cryptocurrency and the advantages possessed.