Explaining digital currency to the Layman

Explaining digital currency to the Layman


February 22, 2016
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How are digital currencies created?

Just like physical currencies, digital currencies like ArtByte don’t just pop into existence; they have to be made. In physical currencies, paper bills are printed and coins are minted by government agencies, then distributed into the banking system. In the same way, digital currencies must be created and distributed to users.

For a digital currency like ArtByte, the currency is created by a software application. This software runs on each computer connected to the ArtByte network. All of the computers connected to the network work together, sharing the complex calculations necessary to create each ArtByte, and a certain number of ArtBytes are created each day. This process is called mining, and is not free, as it costs computer power and electricity. To compensate computer owners for their work, ArtBytes are paid to the software users connected to the network.

How are balances kept and transactions processed?

Just like at your bank, your account balance and transactions are stored on a server. At your bank, the bank owns the server. But, as a digital currency, ArtByte’s account data resides on a peer-to-peer (computer-to-computer) network that consists of all the computers logged into the network. This allows for additional security as there is no single server that hackers can attack, and each transaction is verified by all the computers on the network.

Just like logging into your bank account with your browser, you can see your ArtByte balance and spend it using the ArtByte Wallet App. The wallet gives you all the info you need, just like using your browser for banking transactions. The Wallet App is available in several versions: Online, MAC, Windows, Android, and IOS.

 

Learn more at http://artbyte.me

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