Cryptocurrency is a type of digital or virtual currency that relies on cryptographic techniques to secure transactions, control the creation of new units, and verify the transfer of assets. Unlike traditional currencies issued by governments (fiat currencies), cryptocurrencies operate on decentralized networks based on blockchain technology, which is a distributed ledger maintained by a network of computers (nodes). This decentralization ensures that cryptocurrencies are not controlled by any single entity, providing greater transparency, security, and resistance to censorship or fraud. Bitcoin, created in 2009 by the pseudonymous Satoshi Nakamoto, was the first cryptocurrency and remains the most well-known. Since then, thousands of alternative cryptocurrencies, or altcoins, have been developed, each with its unique features, use cases, and underlying technologies. Cryptocurrencies are used for various purposes, including peer-to-peer transactions, investment, fundraising through Initial Coin Offerings (ICOs), and powering decentralized applications (DApps) and smart contracts in decentralized finance (DeFi) ecosystems.
