Cryptocurrency is a digital asset(currencies) which can be used to exchange value between parties. It uses strong cryptography to secure and verify the financial transactions as well as control the creation of new units of that currency. As we know, it is a digital currency, so it doesn’t exist physically. Some popular cryptocurrencies are Bitcoin, Litecoin, Z-Cash, Monero, Dash, etc.
We know that the government prints the government currencies like fiat currency such as Dollar, Rupees, Yen or Yuan itself. It means there is a centralized institution exists which can create thousands or millions or billions more of that currency. Unlike government currencies like bitcoin, these type of currencies is created by the same mathematical formulas that make the cryptocurrency work. Thus, cryptocurrencies use decentralized control, which works through distributed ledger technology that serves as a public financial transaction database.
Cryptocurrency is a type of digital or virtual currency that uses cryptography for security and operates on decentralized networks based on blockchain technology. Unlike traditional currencies issued by governments and central banks, cryptocurrencies are typically decentralized and rely on a distributed ledger (blockchain) to record and verify transactions.
The most well-known cryptocurrency is Bitcoin, created in 2009 by an unknown person or group using the pseudonym Satoshi Nakamoto. Since then, numerous other cryptocurrencies, often referred to as altcoins, have been developed, each with its own unique features and use cases.
Cryptocurrencies enable peer-to-peer transactions without the need for intermediaries like banks, and they use cryptographic techniques to secure the creation of new units and verify the transfer of assets. Blockchain, the underlying technology, is a distributed ledger that records all transactions across a network of computers in a secure and transparent manner.
It’s important to note that the cryptocurrency space is dynamic, and developments may have occurred after my last update in January 2022.