The complexity of digital currencies will become understandable to anyone willing to grapple with it, especially those not in the know. A digital currency diagram can be indispensable in aiding comprehension by illustrating how digital currencies function.
A model digital currency diagram should begin at blockchain, the technology supportive of most digital currencies, and as such would connect blocks with transaction records to a shared, decentralized, immutable ledger. This diagram would also cover the concepts of mining, which is how a transaction becomes part of the blockchain, and how such a process translates to assured security and transparency.
The diagram might also discuss and summarize the various forms of digital currencies-for example, Bitcoin, Ethereum, Ripple-their unique characteristics and uses. It may further express the different flows in a transaction-for instance, from sending to receipt-and how these flows are verified on the blockchain.
A digital currency diagram could also touch on the larger ecosystem such that of exchanges where digital currencies get bought and sold, wallets where they get stored, and the various applications and services that might be built atop the blockchain.
In this way, a diagram would really reduce the components of digital currencies by much simplified understanding of the meaning for most people; that way enhanced as a learning aid.