How does cryptocurrency work in a decentralized system?

Cryptocurrency operates in a decentralized system, which means there is no central governing body like in traditional financial structures. Instead, transactions and the data about them are stored in the blockchain – a distributed database that is accessible to all participants of the network. Each block in the chain is protected by cryptographic methods, which excludes the possibility of falsifying information.
In the process of transferring cryptocurrency, users do not depend on intermediaries such as banks. Transaction verification occurs through mining or staking, which guarantees transparency and security of operations. This approach provides the opportunity to ensure independence from traditional financial institutions and protection from censorship.