Cryptocurrency

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Cryptocurrency is a digital or virtual form of money that uses cryptography for security and operates on decentralized blockchain technology. Unlike traditional currencies, cryptocurrencies are not issued or controlled by a central authority, such as a government or a central bank. Instead, they rely on a network of computers (nodes) to verify and record transactions. What is cryptocurrency? It’s an asset that allows for peer-to-peer transactions across the internet, enabling users to transfer value globally without the need for intermediaries. Popular examples include Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC), each with its unique features and use cases.

What is cryptocurrency mining? It’s the process by which new transactions are verified and added to the blockchain ledger. Miners use computational power to solve complex mathematical puzzles, and in return, they are rewarded with newly minted cryptocurrency. This decentralized process eliminates the need for a trusted third party, such as a bank, and ensures the security and transparency of the network. While cryptocurrency offers numerous benefits, like low transaction fees and faster cross-border payments, it also faces challenges, such as regulatory scrutiny and energy consumption concerns associated with mining.

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