Cryptocurrency is a type of virtual or digital currency that runs on decentralized networks driven by blockchain technology and employs encryption for security. Cryptocurrencies, in contrast to conventional currencies, are frequently decentralized and not governed by a single entity, such as the government or a central bank. Among the essential features of cryptocurrencies are:
1-Decentralization: Since cryptocurrencies operate on decentralized networks, no single entity controls them. Rather, transactions are verified and recorded on a blockchain, a type of distributed ledger.
2- Security: To safeguard transactions and control the creation of new units, cryptocurrencies make use of cryptographic techniques. They become less susceptible to fraud and counterfeiting as a result. Transparency: Since cryptocurrency transactions are stored on a public blockchain, user anonymity is preserved by using pseudonymous addresses to access transaction data.
3-Borderless nature: Cryptocurrencies don't require middlemen like banks or payment processors to be transferred and used internationally. This makes cross-border transactions quick and reasonably priced. 4-Limited supply: The quantity of coins or tokens that may ever be produced is the maximum number of cryptocurrencies that have a finite supply. Over time, this scarcity may increase their worth. The first cryptocurrency, known by the pseudonym Satoshi Nakamoto and developed in 2009 by an unidentified person or group, is still The first cryptocurrency, known by the pseudonym Satoshi Nakamoto and developed in 2009 by an unidentified person or group, is still Bitcoin, the most popular and frequently used cryptocurrency. Since then, tens of thousands of more cryptocurrencies—also known as altcoins—have been developed, each with special characteristics and applications.