What is Cryptocurrency?
Cryptocurrency is a digital or virtual form of currency that uses cryptographic techniques for security. Unlike traditional currencies issued by central banks, cryptocurrencies operate on decentralized networks based on blockchain technology.
There are three main types of cryptography:
- Bitcoin: Created as a peer-to-peer payment system, Bitcoin operates without a central authority, providing a decentralized way to verify transactions.
- Ethereum: Built on a similar technology as Bitcoin but focuses on enabling a platform for decentralized applications (dApps) and smart contracts. Ether (ETH) is used to power these transactions on the Ethereum network.