What Is Cryptocurrency?
Cryptocurrency Definition:
Cryptocurrency, also called crypto-currency or just crypto, is a form of currency that entirely exists digitally or virtually, using cryptography to secure transactions. It is important to note that cryptocurrencies don’t have a central regulating or issuing authority, making them a decentralized system that records transactions and issues new units.
Cryptocurrency Extended Definition:Most cryptocurrencies are decentralized networks, which are based on blockchain technology – a distributed ledger administered by a disparate network of computers.
Cryptocurrency can be described as a digital payment system that doesn’t depend on banks to verify its transactions. It is more of a peer-to-peer system, enabling anyone anywhere to initiate and receive payments. Cryptocurrency payments are entirely digital entries to an online database. By transferring your cryptocurrency funds, your transactions are recorded in a public ledger. In terms of how it is stored, digital money (or coins) rely on digital wallets.
The name itself is derived from the encryption used to verify transactions, which also involves advanced coding in storing and transmitting crypto data between wallets and public ledgers. The purpose of this crypto encryption is to ensure security and safety of transferred digital funds.
Needless to mention, the first cryptocurrency ever created was Bitcoin, founded in 2009.
For more definitions, check our Cyber Dictionary.