Cryptocurrencies use blockchain as their underlying technology. Blockchains record transactions in a secure, transparent, and immutable way across multiple computers, preventing tampering. Unlike traditional currencies regulated by governments and banks, cryptocurrencies are generally decentralized. This means no single entity, like a central bank, controls them.

Many cryptocurrencies, like Bitcoin, rely on “mining” for transaction validation. Mining involves solving complex mathematical problems to add transactions to the blockchain, earning new coins in the process. Various consensus mechanisms (like Proof of Work or Proof of Stake) are used to verify transactions and secure the network.Users store their cryptocurrencies in digital wallets, accessible through private and public keys. The public key is like an address used to receive funds, while the private key provides access to send funds.

Bitcoin was the first cryptocurrency, created in 2009 by an anonymous person or group known as Satoshi Nakamoto. Since then, thousands of other cryptocurrencies have been created, including Ethereum, Ripple, Litecoin, and more. Some are designed as payment systems, while others offer unique functions, like smart contracts (Ethereum).