Question

Explain in detail the definition of cryptocurrencies. (200 words)

Answer 1

The word “cryptocurrency” is derived from the encryption techniques which are used to secure the network. A cryptocurrency is a new form of digital asset based on a network that is distributed across a large number of computers."Crypto" refers to the various encryption algorithms and cryptographic techniques that safeguard these entries, such as elliptical curve encryption, public-private key pairs, and hashing functions. The protection provided by cryptography, makes it nearly impossible to counterfeit or double-spend. Many cryptocurrencies are decentralized networks based on blockchain technology. This decentralized structure allows them to exist outside the control of governments and central authorities.Cryptocurrencies face criticism for a number of reasons, including their use for illegal activities, exchange rate volatility, and vulnerabilities of the infrastructure underlying them. However, they also have been praised for their portability, divisibility, inflation resistance, and transparency.

BITCOIN, is the first decentralized cryptocurrency. Since the release of bitcoin, over 6,000 alternative variants of bitcoin, or other cryptocurrencies have been created.