Introduction to the concepts of Cryptocurrency

In this blog, we will cover topics such as cryptocurrency, bitcoins, and crypto-jacking. Before starting with the topic, let us understand some basic concepts which will help us in a clear understanding of cryptojacking.

Cryptocurrency is a decentralized, encrypted virtual currency secured by cryptographic methods. The term decentralized denotes that they don’t have any centralized networks and it merely possible for government bodies to interfere in it. These currencies are based on blockchain technology which ensures the integrity of the transactions.

Basics of Cryptocurrency

There are a few concepts that will make us understand the working of cryptocurrency. We shall see them in detail.

Public Ledgers

The public ledger stores all the confirmed transactions from the start of a Cryptocurrency creation. The system uses cryptographic techniques to encrypt the identities of the coin owners and ensure the integrity of records. The purpose of the ledger is to ensure that each transaction uses only coins owned by the corresponding coin owners. The public ledger is also called a transaction blockchain.

Transactions

The transfer of funds between two digital wallets is called a transaction. The public ledger will confirm the transactions which are submitted. The digital signatures are used to confirm the proof of transaction which comes from the wallet owner. This confirmation process takes 10 minutes for a bitcoin.

Mining

The confirmation of the transaction process takes place in mining followed by adding the transaction details to the public ledger. The miners should complete a complex mathematical puzzle to add a block of details to the ledger. It is to be noted that the way in which the blockchain and transactions work together will ensure that no one can manipulate the block.

Proof of Work

Most of the Cryptocurrency uses proof of work system. It ensures that the complex mathematical puzzle is hard to crack and prevents exploitation.

Types of Cryptocurrency

There are various types of cryptocurrencies such as Litecoin, Ripple, Ethereum, etc and Bitcoin is popular among them. Most of us know about bitcoins because of the recent malware threat known as ransomware which used bitcoins for recovering the encrypted hacked files.

Cryptojacking

Cryptojacking is the unauthorized use of any computer to mine cryptocurrencies secretly. It works by secretly using any computer’s resources to mine cryptocurrencies. This malware-based technique evolved with the rise in the usage of cryptocurrencies.

Cryptojackers use malicious software to hijack any computer’s central processing unit to perform mining transactions by solving the complex puzzle. This type of hijacker uses all the systems in a network infected by computers to create powerful pools of mining.

The cost to implement such crypto mining farms is huge and hence these cryptohijackers redirect all the implementation cost to owners of the infected systems.

According to Daily Swig, an article based on crypto mining stated that after 2017 the Cryptojacking turned into official business. But most of the parts, it remains illegal activity by spreading malware through browser scripts. The cryptohijackers enjoy the bitcoins mined illegally without making any investment from their hand.

And, these are the basic concepts of Cryptocurrency and a brief introduction to Cryptojacking.

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