How Does Cryptocurrency Work? A Beginner's Guide
The financial world now experiences a storm driven by cryptocurrency which numerous people find complex and mysterious. The following guide explains cryptocurrency concepts using basic understandings that people can easily grasp. What Is Cryptocurrency? Cryptocurrency is a digital or virtual currency that uses cryptographic security. Unlike traditional money issued by governments (fiat currency), cryptocurrencies operate on decentralized networks based on blockchain technology. The most well-known cryptocurrency is Bitcoin, but thousands of other digital coins exist, including Ethereum, Binance Coin, and Solana. How Does Cryptocurrency Work? Cryptocurrencies function using three core technologies: 1. Blockchain Technology A blockchain is a distributed digital ledger that records all transactions across a network. Each block in the chain contains a list of transactions, and once verified, it becomes a permanent part of the blockchain. This ensures transparency, security, and immutabilit...