Cryptocurrencies, also known as digital or virtual currencies, are a type of digital asset that uses cryptography for security. A cryptocurrency is difficult to counterfeit because of this security feature. A defining feature of a cryptocurrency, and arguably its biggest allure, is its organic nature; it is not issued by any central authority, rendering it theoretically immune to government interference or manipulation.
The first cryptocurrency was Bitcoin, which was created in 2009. Since then, numerous cryptocurrencies have been created. These are frequently called altcoins, as a blend of bitcoin alternatives. Bitcoin and its derivatives use decentralized control as opposed to centralized digital currency and central banking systems.
The decentralized control of each cryptocurrency works through a blockchain, which is a public transaction database, functioning as a distributed ledger. Bitcoin, the first and most widely used cryptocurrency, uses a decentralized control system. This means that there is no central authority, such as a central bank, controlling the supply of the currency or verifying transactions. Transactions are recorded on a public ledger called the blockchain, which consists of a continuously growing list of records, called blocks, which are linked and secured using cryptography.
Cryptocurrencies are digital or virtual currencies that use cryptography for security. A cryptocurrency is difficult to counterfeit because of this security feature. A defining feature of a cryptocurrency, and arguably its biggest allure, is its organic nature; it is not issued by any central authority, rendering it theoretically immune to government interference or manipulation.
