Cryptocurrency, or cryptocurrency, is a virtual currency that uses cryptography to guarantee its security, validity and exchange. Unlike traditional currencies, which are issued and regulated by central authorities, cryptocurrencies are created and managed in a decentralized manner, by networks of computers that follow specific rules and protocols.
Cryptocurrencies are based on blockchain technology, which is a kind of shared and immutable digital ledger that records all transactions carried out with a cryptocurrency. Each block in the chain contains a set of transactions, as well as a code called a hash, which links it to the previous block. Thus, blockchain forms a chain of blocks that cannot be modified or tampered with, because it is validated by a process called consensus, which involves the participation of the majority of nodes in the network.
There are thousands of cryptocurrencies, which have different characteristics and objectives. Among the best known, we can cite Bitcoin, which is the first and most popular cryptocurrency, created in 2009 by a mysterious character named Satoshi Nakamoto. Bitcoin aims to be an alternative to the current monetary system, offering a universal, deflationary and censorship-resistant digital currency. Bitcoin uses a consensus algorithm called proof of work, which requires a lot of computing power to validate blocks and issue new bitcoins.
Ethereum, which is the second largest cryptocurrency in terms of market capitalization, is a platform that allows the creation and execution of decentralized applications, called smart contracts, which are autonomous programs that execute according to predefined conditions.
