What is Cryptocurrency

Overview: Cryptocurrency, often referred to as “crypto,” is a digital or virtual form of currency that uses cryptography for security. Unlike traditional currencies issued by governments (fiat money), cryptocurrencies are decentralized and typically operate on technology called blockchain.

History and Evolution:

The concept of cryptocurrency was introduced in 2009 with the creation of Bitcoin by an anonymous entity known as Satoshi Nakamoto. Bitcoin was designed as a peer-to-peer electronic cash system, allowing for decentralized transactions without the need for intermediaries like banks.

Key Terms and Concepts:

• Blockchain: A distributed ledger that records all transactions across a network of computers. It ensures transparency and security.
• Decentralization: Unlike centralized banking systems, cryptocurrencies operate on a decentralized network of nodes.
• Tokens: Digital assets that represent a unit of value or utility within a specific blockchain ecosystem.

Cryptocurrencies have gained significant popularity and adoption, influencing various sectors and industries. As of now, thousands of cryptocurrencies exist, each with unique features and purposes.