Cryptocurrency is a type of digital or virtual money.
Unlike dollars or euros, which you can hold in your hand, cryptocurrency exists only online. 👍
It’s like having a kind of money that is completely electronic.
Transactions with cryptocurrencies are secured using complex math problems that computers solve, and these transactions are recorded on a public list called a blockchain. 🙄
So what is blockchain?
Blockchain is like a digital ledger or notebook.
Imagine a book where you write down every transaction or trade you make. 🤪
Each page in that book is like a “block” of transactions. Once you fill up a page with details, you move to the next page.
But, to make sure no one cheats or changes the information on a page once it’s written, each page has a special seal or code that’s based on the contents of that page and the previous page.
So, each new page (or “block”) is connected to the previous one, creating a chain of pages – hence the name “blockchain”.
This design makes it really hard for anyone to go back and change something on a page without messing up the codes on all the following pages.
And the coolest part?
This digital book isn’t stored in one place or controlled by one person. 👍👍👍
Instead, many copies exist, and they’re all kept updated by a network of computers.
This way, everyone can trust the information because they can see it and agree on what’s written down.
Because it’s decentralized, this means no central bank or government controls or issues it. 💗💗💗
Think of it like a sort of internet money! 💰💰💰