Cryptocurrency refers to digital or virtual currencies that use cryptography for security and operate on decentralized networks called blockchains. These digital currencies are designed to work as a medium of exchange, just like traditional forms of money, but they rely on cryptographic techniques to secure transactions, control the creation of new units, and verify the transfer of assets.
The most well-known and widely adopted cryptocurrency is Bitcoin, which was created in 2009 by an anonymous person or group of people using the pseudonym Satoshi Nakamoto. Bitcoin introduced the concept of blockchain technology, which is a distributed ledger that records all transactions across a network of computers. Since the creation of Bitcoin, thousands of other cryptocurrencies, commonly referred to as altcoins (alternative coins), have been developed. Some notable examples include Ethereum, Ripple, Litecoin, Bitcoin Cash, and Cardano. Cryptocurrencies offer several advantages over traditional fiat currencies, such as:- Decentralization: Cryptocurrencies operate on decentralized networks, which means they are not controlled by any central authority like a government or a central bank. Security: Cryptography ensures the security of transactions and protects against fraud and counterfeiting. Privacy: Cryptocurrencies provide varying levels of privacy, depending on the design of the...