Cryptocurrency

Learn what a cryptocurrency is, how it is created, and what role it plays in the blockchain ecosystem.

Cryptocurrency is a digital asset—very similar to a currency—and is an integral part of a blockchain ecosystem. Cryptocurrency does not exist without a Distributed Blockchain Ledger (DLT) and some fundamental blockchain mechanisms can't be realized without this asset.

Let's learn what cryptocurrency is with a question/answer approach—first we'll ask the right questions, and then answer them one by one:

  • How is cryptocurrency modeled and realized in a blockchain?

  • How is cryptocurrency issued?

  • Why does cryptocurrency exist?

  • How is cryptocurrency secured?

  • Who has control over the cryptocurrency?

How is cryptocurrency modeled and realized in a blockchain?

All the data stored in a blockchain is immutable and recorded as transactions in the blocks. This information is then used to derive the current state of a blockchain (world state).

The current state is a ...