Cryptocurrency is a digital or virtual currency based on blockchain technology, which uses cryptography to ensure the security of transactions, prevent counterfeiting, and control the generation of new units. Unlike traditional fiat currencies, cryptocurrencies have no central issuing agency (such as a central bank) and rely on decentralized network technology for their operation
The main features of cryptocurrencies include:
Decentralization：cryptocurrencies typically rely on distributed networks, such as blockchains, to record transactions, eliminating control of a centralised institution.
Safety：cryptography technology ensures that transaction records are encrypted and difficult to tamper with. Each transaction needs to be verified and permanently recorded on the blockchain.
Transparency：all transactions are publicly recorded on the blockchain, and anyone can view the complete history of transactions.
Anonymity：users can make transactions through encrypted addresses without revealing their real identities.
The earliest and most well-known cryptocurrency is Bitcoin, which was introduced by a pseudonym Satoshi Nakamoto in 2009. Since then, other cryptocurrencies such as Ethereum and Litecoin have emerged, some of which serve as means of payment, while others support decentralized applications (DApps) and smart contracts.
The cryptocurrency market is highly volatile, and prices are easily affected by investor sentiment, regulatory policies and technological innovation.
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