Cryptocurrency is a form of digital money. Most of us are familiar with digital money in the form of credit cards and know that behind the scenes there are just numbers going from one account to another.
The difference between cryptocurrency and conventional digital money is that it doesn't rely on banks or the government to work, but instead it relies on the people who use it. That's why it can be called peer-to-peer money.
Cryptocurrency is sent and received by a program called wallet. All the transactions are broadcast via internet to every wallet. The wallets form a network that checks and validates every transaction that is made.
The first and the biggest cryptocurrency is Bitcoin. After Bitcoin hundreds of other cryptocurrencies have emerged. With Bitcoin, new bitcoin units are created through a process called mining. Mining means giving processing power to secure the network. New coins are the reward for performing useful work for the sake of network integrity. This method is called "Proof of work".
In LoveCoin, there is currently no mining. Instead, the network security is provided by simply possessing LoveCoin and letting it stand in the wallet for a period of time. This is called "Proof of stake". As a reward for owning LoveCoins - having a stake in LoveCoin - one is rewarded by the creation of new LoveCoins.
