What Is Cryptocurrency

Cryptocurrency is a digital currency designed to work through a computer network that is not reliant on any central authority, such as a government or bank, to uphold or maintain it. It uses a digital ledger or blockchain to store individual coin ownership records, which is a computerized database that uses a consensus mechanism to secure transaction records, control the creation of additional coins, and verify the transfer of coin ownership. The two most common consensus mechanisms are proof of work and proof of stake. Cryptocurrencies are not considered to be currencies in the traditional sense, and varying legal treatments have been applied to them in various jurisdictions. Cryptocurrency has the potential to provide financial inclusion to people who are currently unbanked or underbanked.