Cryptocurrency

Cryptocurrency, a digital currency using cryptography, operates on decentralized blockchain networks enforced by computer nodes. These networks secure transactions, control unit creation, and verify asset transfers through cryptographic techniques.

Key features include decentralization, immutability, transparency, and pseudonymity. Decentralization ensures no single entity controls the network. Immutability safeguards transactions once added to the blockchain. Transparency allows viewing transaction histories, while pseudonymity means users are identified by cryptographic addresses.

Bitcoin, introduced in 2009, was the inaugural cryptocurrency. Since then, thousands of alternatives, often termed altcoins, like Ethereum, Ripple, Litecoin, and Cardano, have emerged.

Cryptocurrencies serve various purposes, including online purchases, investment, remittances, and cross-border value transfers. The crypto market is known for volatility, and global regulations continue evolving as governments navigate these digital assets’ implications.