Decentralization and Blockchain Technology

At the core of cryptocurrency lies decentralization. Unlike traditional banking systems, which are centralized and overseen by financial institutions or governments, cryptocurrencies operate in a decentralized manner. This means transactions occur directly between users (peer-to-peer) without the need for intermediaries, offering increased transparency, security, and autonomy.
Blockchain, the underlying technology of most cryptocurrencies, is a distributed ledger that records all transactions across a network of computers. These transactions, bundled into blocks, are cryptographically linked and added to the chain in a chronological order, forming an immutable record. This transparent and tamper-proof system enhances trust among users.

Utility and Use Cases:

Cryptocurrencies have various utilities beyond being a medium of exchange. Smart contracts, introduced by Ethereum, enable self-executing contracts with predefined rules, reducing the need for intermediaries in legal and financial agreements. Decentralized Finance (DeFi) platforms offer traditional financial services like lending, borrowing, and trading without intermediaries. Non-Fungible Tokens (NFTs) represent unique digital assets, revolutionizing art, gaming, collectibles, and more.