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Cryptocurrency is a type of digital or virtual money that uses cryptography for security. Unlike traditional currencies issued by governments (like the US dollar or euro), cryptocurrencies operate on decentralized networks based on blockchain technology—a distributed ledger enforced by a network of computers (called nodes).
Key features of cryptocurrency include:
1. Decentralization: No central authority controls it; it’s maintained by a distributed network.
2. Security: Transactions are encrypted and verified using cryptographic techniques.
3. Transparency: All transactions are recorded on a public ledger (the blockchain).
4. Anonymity/Pseudonymity: Users can make transactions without revealing their real identities.
Popular examples of cryptocurrencies include Bitcoin (BTC), Ethereum (ETH), and Solana (SOL).
