WHAT ARE CRYPTOCURRENCIES?
Cryptocurrency (or “crypto”) refers to a type of digital asset that may be utilised for a variety of reasons. Bitcoin, for example, was created primarily to be a form of payment that is not controlled or distributed by a central government; Ethereum allows developers to create automated applications in what has become known as Decentralised Finance; and Tether is a Stablecoin whose value is pegged to the US dollar.
Cryptocurrencies gain their name from the cryptographic algorithms that let users to purchase, sell, or exchange them safely without the need for a third party to confirm a transaction, such as a government or financial institution.
Cryptocurrencies are enabled by blockchain technology, which retains a tamper-resistant record of transactions and keeps track of who owns what. The use of blockchains addressed a difficulty encountered by past attempts to establish solely digital currencies: prohibiting users from producing duplicates of their holdings and attempting to spend them twice.
Individual cryptocurrency units are known as coins or tokens depending on how they are utilized. Some are designed to be units of trade for goods and services, while others are value stores and may be used to engage in specialized software programs like as games and financial products.