A cryptocurrency is a virtual currency that can be used for various transactions, including selling and purchasing items or trading. The most prominent cryptocurrencies that are used today include Bitcoin, Litecoin and Ethereum. The first cryptocurrency, Bitcoin, was developed in the year 2008 and released to the public in 2009. It became popular in the next decade and continues to be the most preferred cryptocurrency even today. New Bitcoins are created through a process called Bitcoin mining.
Cryptocurrencies make use of a technology known as a blockchain. Blockchains are enormous ledgers or databases with information stored in unique but linked blocks. Blockchains are decentralised, and no single entity has control over an entire blockchain. When a cryptocurrency transaction takes place, it is sent to computers around the world. These computers solve incredibly complex mathematical problems and verify the transaction. During a Bitcoin mining, the first computer that solves the problem gets Bitcoins. Once the transaction has been verified, it will be added to a block and connected with the rest of the blocks.
Due to decentralisation and cryptography, cryptocurrencies are said to be extremely secure. Since each currency or token has a unique line of code, they can be easily tracked and are difficult to counterfeit. Check out this source to know more about cryptocurrency.