Cryptocurrency works through a technology called blockchain, which is a decentralized and distributed digital ledger that records all transactions across a network of computers. When a transaction is initiated, it is verified by network participants through complex cryptographic algorithms. Once verified, the transaction is added to a block, which is then added to the blockchain.
Cryptocurrencies are secured through cryptography, making them highly secure and transparent. They also operate independently of a central authority, such as a government or financial institution, which provides users with more control over their funds. Transactions are recorded on the blockchain, making them traceable but anonymous, as users are identified by their wallet addresses instead of personal information.
