Cryptocurrency

What is Cryptocurrency?

A cryptocurrency is a digital or virtual currency that is secured by cryptography. Most cryptocurrencies operate on decentralized networks based on blockchain technology.

How does Cryptocurrency work?

1. Transactions are recorded on a public, distributed ledger (blockchain).
2. It uses "consensus mechanisms" like Proof of Work or Proof of Stake to verify data.
3. Most cryptocurrencies have a programmed supply (e.g., Bitcoin's 21 million cap).
4. Users transfer value directly to one another (peer-to-peer) without intermediaries.
5. "Private keys" are used to authorize and secure every transaction.

Why does Cryptocurrency matter?

It introduces "Programmable Money" and financial inclusion for anyone with an internet connection. It offers a transparent, censorship-resistant alternative to traditional banking systems and central-bank-issued currencies.

Key features of Cryptocurrency

• Decentralized (no central authority)
• Transparent and verifiable
• Immutable (cannot be reversed)
• Permissionless access
• Secured by advanced mathematics

Examples of Cryptocurrency

• Bitcoin (BTC), the first cryptocurrency and a digital store of value.
• Ethereum (ETH), a platform for smart contracts and decentralized apps.
• USDC, a "stablecoin" pegged to the value of the U.S. Dollar.