Cryptocurrency is a term used to describe digital currencies that are not issued by central banks or governments. They are created and managed through the use of complex algorithms, which allow for the generation of new currency units.


How does cryptocurrency work? Cryptocurrencies are made up of two parts: a public ledger called the blockchain, and an open source computer program that verifies transactions and runs on many computers all over the world. The blockchain is essentially a continuously growing list of records or blocks (hence “blockchain”) that contain information about every transaction ever made in cryptocurrency. Each block contains data such as time-stamped transactions, previous block hashes (the unique identifier for each block), transaction amounts and more. This creates an unchangeable record of all transactions on the blockchain network – which can be verified by anyone using special software known as a “node” or miner. The process also requires users to solve complicated math problems in order to verify their own transactions before they get added to the chain – this is known as mining because it involves solving difficult mathematical puzzles with your computer power in order to add new blocks onto the chain. Miners compete against one another to solve these puzzles first, earning cryptocurrency rewards based on how fast they can do so – but only after verifying other people’s transactions first! In essence, miners become trusted third parties who help keep everyone honest by ensuring no one spends money twice (double spending). Because there has never been any way for either party involved in any given transaction to spend more than once without being caught, double spending fraud is impossible within cryptocurrencies like Bitcoin and Ethereum – making them incredibly secure forms of payment! Cryptocurrency mining uses specialized hardware referred as ASICs (Application Specific Integrated Circuits), which have very high processing power compared with general purpose CPUs (Central Processing Units). These chips were originally developed for use in banking systems but have since been repurposed into crypto mining rigs due to their extreme processing capabilities while consuming very little electricity at low temperatures! .