Exam (elaborations) 243

Cryptocurrency is a type of digital or virtual currency that uses cryptography for security. Unlike traditional currencies issued by governments (like the dollar or euro), cryptocurrencies are decentralized and usually run on blockchain technology. Examples include: Bitcoin (BTC) Ethereum (ETH) Litecoin (LTC) Cryptocurrencies allow for peer-to-peer transactions without the need for intermediaries like banks. They can be used for payments, investments, and smart contracts. Blockchain Technology Blockchain is the underlying technology behind most cryptocurrencies. It is a decentralized, distributed ledger that records transactions in a secure, transparent, and unchangeable way. Key features: Immutable: Once data is added to the blockchain, it cannot be changed. Distributed: The ledger is shared across many computers (called nodes). Transparent: All participants can view the transaction history. Secure: Uses cryptographic techniques to validate and secure transactions. A blockchain is made up of a chain of blocks, each containing a list of transactions. Every new block is linked to the previous one, forming a secure chain.