What is Cryptocurrency
Introduction
A cryptocurrency is a digital or virtual currency which uses cryptography to verify and secure transactions. Cryptocurrencies are decentralized, meaning that they are not controlled by any central authority, such as a government or a central bank, but instead are governed by a decentralized distributed network. The growing popularity of the crypto industry gave rise to many cryptocurrencies that serve different purposes. Among the most renowned cryptocurrencies are Bitcoin – which is the world’s first cryptocurrency – as well as Ethereum, Solana, Cardano and Ripple.
How do cryptocurrencies work?
Cryptocurrencies operate within a sophisticated software system called a blockchain, which is a digital network that keeps record of all transactions made using cryptocurrency in the form of blocks. Blockchain systems are highly secure as they utilize complex cryptography, which ensures that all transactions are accurate, transparent and are protected from any unauthorized access or tampering.