In recent years, digital currencies called
"cryptocurrencies" have exploded in mainstream
popularity. Cryptocurrencies, such as Bitcoin, Ethereum and
Litecoin were once accepted by only a few online vendors, but now
may be used as payment at some restaurants, retail stores and even
real estate brokers.
What is a cryptocurrency?
A cryptocurrency is a form of digital currency that is
decentralized and managed by a peer-to-peer network. Rather than
one central organization providing oversight and control of the
currency – like a central bank would for its country's
legal tender – the control lies with a network of users who
confirm every transaction. Once transactions are confirmed by the
network, they are posted to a digital ledger called the
"blockchain," which is an immutable, publicly-accessible
record of all transactions that have taken place. Thanks to the
global popularity of cryptocurrencies, this confirmation normally
occurs within minutes.
