What are cryptocurrencies?

Learn in detail what cryptocurrencies are and discover why they represent a revolution.

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Written by belo
Updated over a week ago

A cryptocurrency is a form of digital money that uses cryptography to secure its transactions, as well as to manage its issuance and ensure its ownership. At their core, cryptocurrencies are neither issued nor controlled by state authorities.

The prospect of issuing digital currencies beyond the control of a central authority has been a reality since late 2008, when an individual or group of individuals under the pseudonym "Satoshi Nakamoto" gave birth to Bitcoin.

What does this breakthrough entail?

Cryptocurrencies are part of a revolution that is already underway, and which threatens to transform many of our conceptions regarding value and money, primarily, as well as it will have an impact on many other areas of our lives.

Bitcoin has made it possible for the first time to achieve a previously unthinkable goal: a currency that no longer needs an issuing and controlling authority, with its integrity based on a distributed ledger, known as the Blockchain, where transactions are public and verifiable by each of the parties involved.

Its governance is distributed among them, and security is guaranteed by means of cryptographic technology, which makes it possible to develop a free, transparent, and censorship-resistant system that recognizes no borders.

Since Bitcoin's creation, new developments have followed one another, with countless projects emerging and proposing solutions to different issues by using Blockchain technology. Along with them, new cryptocurrencies, new tokens with different use cases acquired value from their exchange.

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