How do crypto interest accounts work?

Here’s a quick explainer on how crypto interest accounts work. What is a crypto interest account? A crypto interest account is generally a crypto platform’s offering that lets you earn interest on digital assets that you’ve bought. You agree to lend out Bitcoin or altcoins (any cryptocurrency that isn’t Bitcoin) in exchange for interest.

What is an interest account?

We are pleased to offer the Interest Account feature to eligible Blockchain.com Wallet users. The Interest Account is an interest-generating crypto storage facility within your Wallet that earns interest on the amount you transfer and store in it.

How does blockchain work?

Blockchain does not store any of its information in a central location. Instead, the blockchain is copied and spread across a network of computers. Whenever a new block is added to the blockchain, every computer on the network updates its blockchain to reflect the change.

Are blockchains open-source?

Most blockchains are entirely open-source software. This means that everyone can view its code. This gives auditors the ability to review cryptocurrencies like Bitcoin for security. However, it also means there is no real authority on who controls Bitcoin’s code or how it is edited.