Cryptocurrency

A cryptocurrency is a digital or virtual currency that uses cryptography for security. Unlike traditional currencies (such as the Czech koruna or the US dollar), which are issued and controlled by central banks and governments, most cryptocurrencies are decentralized. This means they operate on a distributed ledger technology called a blockchain—a type of public ledger that is maintained and verified by a vast network of computers around the world.

This decentralized nature ensures that no single entity can censor, alter, or counterfeit transactions. The oldest and most well-known cryptocurrency is Bitcoin, which was created as an alternative to the traditional financial system. Other major cryptocurrencies, such as Ethereum, have expanded the technology's capabilities, enabling the creation of smart contracts and decentralized applications. Today, cryptocurrencies serve not only as a medium of exchange but also as a highly speculative investment asset and, for some, a store of value.