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Cryptocurrencies such as Bitcoin, LiteCoin, Ether, YOCoin, and many others have been designed as a non-fiat currency. In other words, its backers assert that there is “actual” worth, even through there is no physical representation of that worth. The worth increases due to computing power, that’s, is the only way to create new coins distributed by allocating CPU electricity via computer programs called miners. Miners create a block after a time period that is worth an ever declining amount of currency or some sort of wages so that you can ensure the deficit. Each coin includes many smaller components. For Bitcoin, each unit is called a satoshi. Once created, each Bitcoin (or 100 million satoshis) exists as a cipher, which is part of the block that gave rise to it. The blockchain is where the public record of all trades dwells. Most all cryptocurrencies function as Bitcoin does.
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