Cryptocurrency is a form of digital or virtual currency that uses cryptography for security.

Unlike
traditional currencies issued by governments, cryptocurrencies operate on technology called blockchain,
a decentralized ledger that records all transactions across a network of computers. This ensures
transparency and prevents fraud, as every transaction is visible and cannot be altered once confirmed.

The concept of cryptocurrency was introduced with Bitcoin in 2009 by an unknown person or group
using the pseudonym Satoshi Nakamoto. Bitcoin's success paved the way for numerous other
cryptocurrencies, often referred to as altcoins, such as Ethereum, Litecoin, and Ripple. Each of these has
unique features and uses. For example, Ethereum enables smart contracts, which are self-executing
contracts with the terms of the agreement directly written into code.

Cryptocurrencies are obtained through a process called mining or can be purchased on various online
exchanges. Mining involves solving complex mathematical problems, which require significant
computational power and energy. Once solved, a new block is added to the blockchain, and the miner is
rewarded with cryptocurrency.

One of the key advantages of cryptocurrency is the potential for financial inclusion, as it provides access
to financial services for people who are unbanked or underbanked. Additionally, transactions can be
faster and cheaper compared to traditional banking systems, especially for cross-border payments.

However, the volatility of cryptocurrencies, regulatory uncertainties, and their association with illicit
activities pose challenges. Despite these issues, the adoption and acceptance of cryptocurrency continue
to grow, suggesting that it could play a significant role in the future of finance.