What is Cryptocurrency?

Crypto Currency (or Cryptography) is a controversial digital asset designed to function as a cryptographic medium of exchange to secure your transactions, additional monitor units, and transfer assets. Cryptocurrencies are a type of digital currency, alternative currency and virtual currency. Cryptocurrencies use decentralized control instead of a centralized electronic money system and central banks.

The decentralized control of each cryptocurrency works through blockchain, which is the basis of public transactions, which works as a distributed ledger.

Formal definition

According to Jan Lansky, crypto may be a system that meets four conditions:

• The policy defines whether new units of cryptocurrency can be created. If new units of cryptocurrency can be designated, the system will identify the circumstances of the source with the ownership of these new units.

• If two different instructions to change the purchase of the same cryptographic units are entered, the system executes at most one of them.

• The system allows transactions to be carried out in a way that the owner of the cryptographic unit is changed. A statement transaction can only be issued by an entity that proves the actual owners of these units.

• Ownership of cryptocurrency units can only be shown in cryptography.


Decentralized cryptography collectively produces the entire system of cryptographic services at the speed defined during the creation of the system and is publicly known. In centralized banking and economic policies, such as the Federal Reserve System, administrative committees or governments control the money supply by printing trust fund units or requiring complementary digital ledgers. In the case of decentralized cryptography, governments or companies cannot produce new units, and they are also not compatible with other companies, banks or entities that have property values. The primary technical system based on decentralized cryptocurrencies was created by a group or individual known as Satoshi Nakamoto.

As of May 2018, there were over 1,800 transparent crypto specifications. The crypto-currency system, security, integrity and balance records are maintained by a community of mutually suspicious parties called minors who use their computer to confirm the time of the transaction, adding to the register under a specific scheme of time stamps .

Most crypto copies are designed to gradually reduce the production of this coin by limiting the total amount of those coins that will be in circulation. Compared to common currencies held by financial institutions or maintained

money in hand, the police can be more difficult to catch crypto. This problem comes from the exploitation of cryptographic technologies.