#OnChainLendingSurge Cryptocurrencies are decentralized digital currencies that use cryptography for security and transaction validation. They operate through a peer-to-peer network, without government or institutional control. Here is a summary:

Characteristics

1. Decentralization: They do not depend on central authorities.

2. Cryptography: They protect transactions with advanced algorithms.

3. Blockchain: Public and immutable record of transactions.

4. Mining: Validates transactions and rewards miners.

How it works

1. Transactions are carried out between users.

2. Miners validate transactions via proof of work.

3. Transactions are recorded on the blockchain.

4. New units are created and distributed to miners.

Advantages

1. Security.

2. Privacy.

3. Speed.

4. Low costs.

Examples

1. Bitcoin (BTC).

2. Ethereum (ETH).

3. Binance Coin (BNB).