Cryptocurrencies are digital assets that use cryptography to secure and verify transactions. Cryptocurrencies use blockchain technology, an encrypted open ledger, to facilitate these transactions. This ledger is distributed over a network of computers that maintain a comprehensive record of all transactions that occur within the network. Transactions are recorded on the blockchain, allowing anyone with an internet connection to view the transactions and verify their validity. Each transaction must be approved and confirmed by the network in order for it to be successfully added to the ledger. Transactions are processed almost instantly, making them significantly faster than traditional bank transfers and payments.
