Language
Currency
Download App
Cryptocurrency is a type of digital currency based on blockchain technology, which ensures the security and transparency of transactions through encryption algorithms. Here is a basic introduction to cryptocurrency:
Technological basis: Cryptocurrency uses blockchain technology, a distributed ledger that records all transactions to ensure data integrity and immutability.
Decentralization: Cryptocurrency does not require the endorsement of central banks or governments. They rely on nodes in the network to verify and record transactions, achieving decentralized management.
Encryption algorithm: Cryptocurrency uses encryption algorithms to protect the security of transactions, with Bitcoin using the SHA-256 algorithm, for example.
Types: Cryptocurrency comes in various types, including traditional ones like Bitcoin and Ethereum, as well as emerging types like Meme Coins. Meme Coins tend to lack practicality or technological innovation but generate hype through social media.
Uses: Cryptocurrency can be used for transactions, investments, and value storage. However, their prices are highly volatile, making them impractical as stable units of account or value storage methods.
Issuance mechanism: Cryptocurrency issuance mechanisms include mining, where new cryptocurrencies are obtained by solving mathematical problems through computer computations.
Legal status: Cryptocurrency is legally considered a commodity or virtual commodity, rather than a real currency.