What makes up web3? Crypto What are cryptocurrencies?

What are cryptocurrencies?

Cryptocurrencies are digital and intangible forms of currency, meaning that they cannot be touched or felt but still hold a certain value. These cryptocurrencies, or crypto for short, come in a variety of forms and serve different purposes, much like how different countries have their own national currencies with varying designs and values.

As the world increasingly moves towards digital payment methods like debit and credit cards, cryptocurrencies have the potential to offer even more thanks to blockchain technology.

If you’ve been reading on from previous chapters, you might be able to put this in the context of what we have covered already:

  • It is fully decentralized, meaning that it is not controlled by one entity or authority like a central bank or government. It is made possible because of the consensus mechanism of a given blockchain network.
  • There is no financial middleman that can interfere, meddle, negotiate, or take a cut from carrying out your transactions.
  • The process of cryptography is used to make financial transactions on the blockchain secure.

So, let’s get started and look into the world of cryptocurrencies.

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