Nyancoin is a currency system based on “Nyan Cat” and is just like other cryptocurrencies. Nyan Cat is a cat created from a pop-tart flying through space with a rainbow behind it. There is a Youtube video on Nyan Cat, which is 3m 37s in length. This is the reason for the extensive occurrence of the number 337 in the Nyancoin specifications and many other places.

Nyancoin can be exchanged with goods and services, passed from one person to another, and used similarly to any other currency. Nyancoin is not backed by any physical substance and has no central authority associated with it.

Complex mathematical calculations are used to validate and process the currency shared between computers connected to the Nyancoin network. Each computer that runs Nyancoin software contains a whole record of each Nyancoin transaction and frequently receives new information from the remaining network.

Additionally, Nyancoin addresses are used to recognize a particular quantity of Nyancoins. Anyone can check the balance of a Nyancoin address coin at any time. Only the person with the corresponding key can send the Nyancoins to other addresses. Nyancoin’s address has two parts—a public address and a private address. The public Nyancoin address starts with the letter K. This address is given to other people to send Nyancoins to their accounts.

The private key is something that is kept secret at all times. Any person with a private key can send Nyancoins from the address and do whatever they want with those Nyancoins. The private key is like a key to a user’s vault. Therefore this key should be kept in a secure place with a permanent record of Nyancoin addresses.

Also, the first time anyone runs Nyancoin software, the blockchain (a chain of blocks) needs to be downloaded. It is continually added at a rate of about one block per minute. Mining is the process through which these blocks are created.

To create a new block, complex calculations are done under which the previous block and recent transactions are combined to create new ones. The users who find a block are rewarded with a certain number of Nyancoins. This is how more Nyancoins are created. 

Nyancoin was launched in January 2014. The original developers of Nyancoin are not known. The total amount of Nyancoin was proposed to be 337,000,000. However, because of an error, the actual total is more, as the block rewards will continue halving until they reach zero.