Cryptocurrency

Cryptocurrency is a digital or virtual form of currency that uses cryptography for security. It operates on decentralized technology, typically a blockchain, which is a distributed ledger that records all transactions across a network of computers. Unlike traditional currencies governed by central banks, cryptocurrencies are generally not controlled by any central authority, making them resistant to government interference or manipulation.

Cryptocurrencies enable peer-to-peer transactions without the need for intermediaries like banks. They can be used for various purposes, including online purchases, investment, and as a medium for exchanging values across borders. The first and most well-known cryptocurrency is Bitcoin, which was created in 2009. Since then, thousands of alternative cryptocurrencies, often referred to as “altcoins,” have emerged, each offering different features or implementations.

Cryptocurrencies are characterized by their potential for volatility in value, their ability to provide increased privacy and anonymity compared to traditional financial systems, and the technological innovations that underpin their functioning, such as proof-of-work and proof-of-stake mechanisms.