Cryptocurrency

Cryptocurrency is a type of digital currency that relies on cryptography and blockchain technology to enable users to send and receive the currency without a trusted third party. The most popular cryptocurrency out there, Bitcoin, works by having numerous computers running a complex math puzzle in order to verify blocks (hence: blockchain) which contain all the new transactions made on the network. Once they do, they get bitcoins as reward, making it lucrative for them to power the network. Since it takes vast computational power to beat all of these computers at math, this makes Bitcoin secure from attackers who would want to falsify transactions. Besides Bitcoin, there are numerous other cryptocurrencies, each with a different goal. Best known among them is Ethereum, which uses similar basic principles as Bitcoin in order to power a network for decentralized applications.

Australian computer scientist Craig Wright arrives at the High Court in London on February 5, 2024.
, A visual representation of the digital cryptocurrency Bitcoin is displayed in front of Securities and Exchange Commission (SEC) logo.
The seal of the U.S. Securities and Exchange Commission is being displayed on a smartphone, with Bitcoin visible on the screen in the background.

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