Cryptocurrency

Cryptocurrency is a type of digital or virtual currency that uses cryptography for security. It operates on decentralized technology, typically through blockchain, which is a distributed ledger enforced by a network of computers (often referred to as nodes). Cryptocurrencies are designed to work as a medium of exchange, allowing for peer-to-peer transactions without the need for a central authority, such as a bank or government. They are characterized by their decentralized nature, limited supply, and the use of cryptographic techniques to secure transactions and control the creation of new units.

Popular cryptocurrencies include Bitcoin, Ethereum, and Litecoin, each with unique features and use cases. Transactions made with cryptocurrencies are generally irreversible and provide a level of transparency, as transaction histories can be publicly viewed on the blockchain. However, this transparency can also raise privacy concerns. Cryptocurrency can be used for various purposes such as online purchases, investment, remittances, and as a means to raise funds through Initial Coin Offerings (ICOs). The rise of cryptocurrencies has sparked discussions around regulation, security, and their potential to disrupt traditional financial systems.