Cryptocurrency

Cryptocurrency is a type of digital or virtual currency that uses cryptography for security. It operates on decentralized technology, typically through a technology called blockchain, which is a distributed ledger enforced by a network of computers (nodes). This decentralization means that cryptocurrencies are not controlled by any central authority, such as a government or financial institution, making them resistant to censorship and fraud.

Cryptocurrencies enable peer-to-peer transactions, allowing individuals to send and receive funds directly without intermediaries. Each cryptocurrency operates on its own set of protocols and can vary in terms of speed, scalability, and use cases. The most well-known cryptocurrency is Bitcoin, created in 2009, but there are thousands of other cryptocurrencies, each with unique features and purposes, such as Ethereum, Ripple, and Litecoin.

Cryptocurrencies can be used for various applications, including online purchases, investment, remittances, and smart contracts. However, they also come with risks, including price volatility and the potential for loss due to hacking or regulatory changes. The growing popularity of cryptocurrencies has sparked discussions about their future role in the global financial system.