Cryptocurrency is a purely digital form of currency that uses cryptographic technology to secure transactions, verify asset transfers, and manage the creation of new units. Unlike traditional money controlled by banks or governments, cryptocurrencies operate on decentralized systems like blockchain. This technology acts as a transparent, shared ledger where all transactions are recorded and verified by network participants.
Popular examples include Bitcoin, which functions as a decentralized alternative to traditional payments, and Ethereum, which powers decentralized applications and smart contracts on its network. Cryptocurrencies can also pose risks, such as price volatility, susceptibility to hacking, and the irreversible loss of assets if access to digital wallets is lost.
Source: Shiraverse