What is a cryptocurrency?

Cryptocurrency (or cryptography) is a controversial digital asset designed to function as a cryptographic exchange medium to secure your transactions, additional tracking units and funds transfers. Crypto values ​​are a type of digital currency, alternative currency and virtual currency. Cryptocurrencies use decentralized control instead of a centralized electronic money system and central banks.

Decentralized control of each cryptocurrency operates through a blockchain, which is the basis of public transactions, which functions as a distributed record.

Formal definition

According to Jan Lansky, crypto may is a system that meets four conditions:

• The policy defines whether new cryptocurrency units can be created. If new cryptocurrency units can be designed, the system identifies the circumstances of the source with ownership of those new units.

• If two different instructions are entered to change the purchase of the same cryptographic units, the system executes at most one of them.

• The system allows transactions to be conducted in a way that changes the owner of the cryptographic unit. A statement transaction can only be issued by an entity that proves the current owners of these units.

• Ownership of cryptocurrency units can only be displayed cryptographically.


Decentralized cryptography collectively produces the entire system of cryptographic services at the speed defined when creating the system and is publicly known. In centralized banking and economic policies, such as the Federal Reserve System, administrative committees or governments that control the supply of money by printing fiduciary fund units or requiring complementary digital books. In the case of decentralized cryptocurrency, governments or companies cannot produce new units and yet they are not compatible with other companies, banks or entities that have asset value. The primary technical system based on decentralized cryptocurrencies was created by a group or individual known as Satoshi Nakamoto.

As of May 2018, there were more than 1,800 crypto-transparent specifications. The cryptocurrency, security, integrity and balance sheet system is maintained by a community of suspicious parties called minors who use their computer to confirm the time of the transaction, adding them to the registry according to a specific timestamp scheme.

Most cryptocurrencies are designed to gradually reduce the production of this currency by limiting the total amount of these coins that will be in circulation. Compared to common currencies held or maintained by financial institutions

money in hand, police may find it harder to catch cryptocurrencies. This problem comes from the exploitation of cryptographic technologies.