How Crypto Currency Works

Cryptocurrency is a form of digital money that operates on blockchain technology. Unlike traditional currencies such as pounds or dollars, cryptocurrencies are not issued or controlled by a central authority like a bank or government.

Instead, transactions are verified by a decentralised network of computers around the world. These computers maintain a shared ledger called a blockchain, which records every transaction that takes place.

Each transaction is grouped into blocks and permanently added to the chain, making the system transparent, secure, and extremely difficult to manipulate.

The first and most well-known cryptocurrency is Bitcoin, created in 2009. Since then, thousands of other cryptocurrencies have been developed, including Ethereum, Solana, and many others designed for payments, applications, or financial services.

In simple terms, cryptocurrency allows people to transfer value directly to one another online without relying on traditional financial institutions.