How Cryptocurrency ACTUALLY Works | by Wifi Mochi | The Capital | Mar, 2025
Ever wondered what all the fuss about cryptocurrency is about? It seems like everyone’s talking about it, but understanding the underlying technology can be a bit daunting. Let’s break down the basics and demystify the world of crypto!
What is Cryptocurrency?
Cryptocurrency is essentially digital money. Unlike traditional currencies issued by governments, cryptocurrencies are decentralized, meaning no single entity controls them. This decentralization is a key feature that makes them unique.
Think of it as digital cash that exists only online. It uses cryptography for security, making transactions secure and verifiable. This cryptographic security is what gives cryptocurrency its name.
The Blockchain Explained
The backbone of most cryptocurrencies is the blockchain. It’s a public, distributed ledger that records all transactions in a secure and transparent way. Imagine a digital record book shared across many computers.
Each transaction is grouped into a “block,” and these blocks are chained together chronologically. This chain is secured using cryptography, making it virtually impossible to alter past transactions. This immutability is crucial for trust.
