Cryptocurrency

A cryptocurrency or crypto is a digital currency designed to act as a medium of exchange over a computer network that does not rely on any central authority, such as a government or bank, to maintain or maintain it. It is a anonymously decentralized system of verifying that the parties to a transaction have the money they claim to have, eliminating the need for traditional intermediaries, such as banks, when transferring money between two entities. Examples are Bitcoin (BTC), Ethereum (ETH), Monero (XMR), Cardano (ADA), Litecoin (LTC), Chainlink (LINK), Bitcoin Cash (BCH), Waves (WAVES), USDC (USDC), Tron (TRX), Ethereum Classic (ETC), Basic Attention T. (BAT), Tezos (XTZ).

Individual coin ownership records are stored in a digital ledger, an automated database that uses strong cryptography to secure transaction records, control the creation of additional coins, and verify the transfer of ownership of coins. Despite their name, cryptocurrencies are not considered currencies in the traditional sense and although various treatments have been applied to them, including classification as commodities, securities and currencies, in practice cryptocurrencies are generally considered to be a separate asset class. Some crypto schemes use validators to maintain the cryptocurrency. In a proof-of-stake model, owners place their tokens as collateral. In return, they get authority over the token in proportion to the amount they wager. Generally, these token strikers gain additional ownership of the token over time through network fees, newly minted tokens, or other similar reward mechanisms.