The Decentralized World of Cryptocurrencies

A cryptocurrency is a digital currency designed to work as a medium of exchange through a computer network that is not reliant on any central authority, such as a government or bank, to uphold or maintain it.

The purpose of a decentralized system in cryptocurrency is to verify that the parties to a transaction have the money they claim to have, eliminating the need for traditional intermediaries, such as banks, when funds are being transferred between two entities.

Coin ownership records are stored in a digital ledger, which is a computerized database using strong cryptography to secure transaction records, control the creation of additional coins, and verify the transfer of coin ownership.

<p>No, cryptocurrencies are not considered currencies in the traditional sense.</p> Signup and view all the answers

<p>Cryptocurrencies are generally viewed as a distinct asset class.</p> Signup and view all the answers