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---
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summary: 'a digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, usually operating independently of a central bank'
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terms: ["cryptocurrency", "cryptocurrencies", "altcoin", "altcoins"]
---
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{% include disclaimer.html translated="no" translationOutdated="no" %}
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### The Basics
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A digital currency in which encryption techniques are used to regulate the
generation of units of currency and verify the transfer of funds, usually
operating independently of a central bank.
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### More Information
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Cryptocurrency is the generic term for a large set of digital assets that
use encryption techniques to generate units of currency, verify the
transactions, and transfer value. Generally, cryptocurrencies are considered
to be decentralized. Cryptocurrency should not be confused with virtual
currency which is a type of digital money that is usually controlled by its
creators or developers. Some examples of virtual currency are gametime in
World of Warcraft, ROBUX in Roblox, reward points programs, or Ripple, all
of which can be exchanged for currency or cash value, but are not considered
cryptocurrency because they are centalized and controlled/issued by a single
entity.
Monero is one of many cryptocurrencies currently available. Other examples
are Bitcoin, Litecoin, Dogecoin, Dash, Zcash, etc, but nearly all other
cryptocurrencies lack features that make them a true money (most importantly
@fungibility which is a requirement for it to be a store-of-value).
Not all cryptocurrencies operate the same, but they usually share the
properties of decentralization, encryption, and the ability to send and
receive transactions. Most are irreversible, pseudonymous, global, and
permissionless. Most aim to be a store-of-value or be digital cash that
allows you to transact.
Most cryptocurrencies (including Monero) use a distributed ledger (called a
@blockchain ) to keep track of previous transactions. The blockchain serves
to tell other users on the network that transactions have happened. There
are many different ways for cryptocurrencies to create their blockchain, and
not all are the same. Monero uses proof-of-work to craft blocks, where other
cryptocurrencies may use proof-of-stake or other consolidated methods.
Ultimately, cryptocurrency is an attempt to create trustless value; that is
free from borders, governments, and banks. Whether that be to transact or to
be digital gold is up to the users of each.
