Cryptocurrency is a type of digital or virtual currency that uses cryptography for security, making it difficult to counterfeit. Unlike traditional currencies, cryptocurrencies operate on a decentralized network based on blockchain technology—a distributed ledger enforced by a disparate network of computers. This blockchain records all transactions across a network of computers but does not rely on any central authority, such as a government or bank, to oversee or maintain it.
The first and most well-known cryptocurrency is Bitcoin, introduced in 2009 by an anonymous entity known as Satoshi Nakamoto. Since then, thousands of alternative cryptocurrencies with various functions and specifications have been developed, including Ethereum, Ripple (XRP), Litecoin, and many others.
Cryptocurrencies can be used for a wide range of applications, from digital payments and remittances to more complex uses like smart contracts (self-executing contracts with the terms of the agreement directly written into lines of code), decentralized finance (DeFi) applications, and non-fungible tokens (NFTs).
Key characteristics of cryptocurrencies include:
- Decentralization: Most cryptocurrencies operate on technology that distributes control away from a central authority.
- Anonymity: While transactions are recorded on a public ledger, the identities of the parties involved are encrypted.
- Security: Cryptocurrencies use cryptographic techniques, making them secure against counterfeit and fraudulent transactions.
- Global accessibility: Cryptocurrencies can be sent or received anywhere in the world, and may offer a low-cost alternative to traditional banking and money transfer services.
The rise of cryptocurrencies has sparked a global debate about their potential impact on financial systems, regulatory frameworks, and economic activities. While proponents argue for their efficiency, security, and ability to democratize finance, critics raise concerns about their volatility, regulatory oversight, and potential for illicit use.
Different organizations are involved with the cryptocurrency community. Please visit this page frequently for updates.
For policy updates visit. Crypto Council For Innovation
Digital Chamber of Commerce: Know Your Crypto Campaign