Cryptocurrency is a digital or virtual currency that is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend. Cryptocurrency is not issued by any central authority, rendering it theoretically immune to government interference or manipulation.
The first cryptocurrency to capture the public imagination was Bitcoin, which was launched in 2009 by an individual or group known by the pseudonym Satoshi Nakamoto. As of February 2021, there are over 8,000 different cryptocurrencies in circulation, with a total market capitalization of over $1.5 trillion.
Cryptocurrencies are based on distributed ledger technology, such as blockchain, which is a decentralized digital ledger that records transactions across many computers. This technology ensures that transactions are secure and immutable.
Cryptocurrencies use various timestamping schemes to avoid the need for a trusted third party to timestamp transactions added to the ledger. The most widely used proof-of-work scheme is based on SHA-256, which was introduced by Bitcoin.
Cryptocurrencies are also used as a store of value, and some have become popular investments. Bitcoin, for example, has seen its price skyrocket in recent years, making it one of the most valuable assets in the world.
Cryptocurrencies are also used for a variety of other purposes, such as facilitating payments, providing a platform for smart contracts, and enabling decentralized applications.
Cryptocurrencies are still in their infancy, and their future is uncertain. However, they