Cryptocurrency is a form of digital or virtual currency that uses cryptography for security and operates on a decentralized network of computers. Unlike traditional currencies issued and regulated by governments and central banks, cryptocurrencies operate on technology called blockchain, which is a distributed ledger that records all transactions across a network of computers.

Some key Characteristics of Crypto Currency

• Decentralization: Cryptocurrencies operate on a decentralized network of computers, meaning there is no central authority or government controlling them. This decentralization is achieved through blockchain technology.
• Cryptography: Cryptocurrencies use cryptographic techniques to secure transactions and control the creation of new units. This ensures the integrity and security of the currency.
• Blockchain Technology: Most cryptocurrencies operate on a blockchain, which is a chain of blocks that contains a record of all transactions. Each block is linked to the previous one, creating a secure and transparent ledger.
• Limited Supply: Many cryptocurrencies have a finite supply, meaning there is a maximum number of units that can ever exist. For example, Bitcoin has a cap of 21 million coins. This limited supply is often designed to mimic the scarcity of precious metals like gold.
• Mining: Some cryptocurrencies use a process called mining to validate transactions and secure the network. Miners use powerful computers to solve complex mathematical problems, and in return, they are rewarded with new cryptocurrency coins.