1. how is cryptocurrency different from government issued currency? 2. how is a transaction verified on a…

1. how is cryptocurrency different from government issued currency? 2. how is a transaction verified on a cryptocurrency network?

1. how is cryptocurrency different from government issued currency? 2. how is a transaction verified on a cryptocurrency network?

Answer

Brief Explanations:

  1. Cryptocurrency is decentralized, often using blockchain technology, not issued or regulated by a central government. Government - issued currency is centralized, regulated by central banks and governments. It has legal - tender status.
  2. On a cryptocurrency network, transactions are verified through consensus mechanisms like proof - of - work or proof - of - stake. Miners or validators check and add transactions to the blockchain after solving complex mathematical puzzles or staking tokens.

Answer:

  1. Cryptocurrency is decentralized and not issued by a government, while government - issued currency is centralized and regulated by central banks and governments with legal - tender status.
  2. Transactions on a cryptocurrency network are verified through consensus mechanisms such as proof - of - work or proof - of - stake where miners/validators check and add transactions to the blockchain.