The Fundamentals of Cryptocurrency

The Fundamentals of Cryptocurrency: Digital Trust and Decentralization

Cryptocurrency is a form of digital or virtual money that uses cryptography for security.¹ Unlike traditional fiat currencies controlled by central banks (like the U.S. dollar), crypto is fundamentally decentralized, meaning no single government, institution, or corporation holds authority over its issuance or transaction verification.² This concept, pioneered by Bitcoin in 2009, represents a revolutionary shift in how value is exchanged.³

The core technology powering nearly all cryptocurrencies is the blockchain.⁴ A blockchain is a distributed public ledger—a chronological, tamper-proof record of every transaction made across the network.⁵ Transactions are grouped into "blocks" and linked together using cryptographic hashes, forming an immutable "chain."⁶ This shared, replicated record is housed across a vast network of computers (nodes), ensuring transparency and security.

Crypto Beginners Guide