Cryptocurrency is a type of digital currency that is stored and used virtually. Cryptocurrencies are a technology used to make transactions on a digital network, and security is provided by blockchain technology.
Working Mechanism:
- Blockchain: A data structure used to secure cryptocurrency transactions. Each transaction is added to a block, and these blocks are linked together in a chain.
- Mining: The process of adding a new block and confirming transactions. Miners ensure the security of the blockchain network by verifying transactions and receive a certain amount of cryptocurrency as a reward.
- Encryption: Cryptocurrency transactions are protected using strong encryption algorithms.
- P2P (Peer-to-Peer): Cryptocurrency transactions are made directly between peers on the network, and there is no need for a central authority.
For more information on this topic, you can research a specific cryptocurrency such as Bitcoin or another cryptocurrency.