Cryptocurrency is a digital form of money that uses cryptography to secure transactions. Unlike traditional currencies, cryptocurrencies are not dependent on central banks or governments, making them decentralized. The most well-known example is Bitcoin, but there are many other cryptocurrencies.
Cryptocurrencies are based on blockchain technology, which is a chain of data blocks protected from alterations by cryptographic methods. When a transaction occurs, it is recorded in a block that is added to previous blocks, creating what is called a "chain." This structure ensures transparency and security, preventing fraud.
Each cryptocurrency operates through a distributed network of users called miners, who verify and confirm transactions. They use computational power to solve complex problems, for which they are rewarded with new coins. This approach makes the system resilient and protected from external interference.
Thus, cryptocurrencies enable fast and secure money transfers, giving users more control and anonymity compared to traditional financial systems.