Cryptocurrency is a type of digital or virtual currency that uses cryptography for security. Unlike traditional currencies issued by governments, cryptocurrencies operate on decentralized networks based on blockchain technology, which is a distributed ledger enforced by a network of computers (or nodes). This decentralization makes cryptocurrencies resistant to government interference or manipulation.
One of the most well-known cryptocurrencies is Bitcoin, which was created in 2009. Cryptocurrencies can be used for various purposes, including online purchases, investment, and remittances. The rise of cryptocurrencies has led to the development of a new financial ecosystem, often referred to as DeFi (Decentralized Finance), which aims to recreate traditional financial systems in a decentralized manner.