Cryptos

Cryptocurrencies, or cryptos, are digital assets that use cryptography and distributed ledgers to enable peer-to-peer value transfer and programmable features without centralized intermediaries. They typically operate on blockchains, public networks maintained by a distributed set of participants. Cryptos can be used as a medium of exchange, a store of value, or a platform for programmable rules.

Most cryptos rely on a decentralized consensus mechanism to confirm transactions. The most common is proof of work, used by Bitcoin, which requires network participants to expend computing power. Others use proof of stake or hybrid approaches, where ownership or stake helps secure consensus.

Bitcoin pioneered digital scarcity and a global payments network. Ethereum popularized programmable contracts, enabling decentralized applications and finance (DeFi). Many projects issue tokens on existing blockchains to represent assets, rights, or utilities.

Together with exchanges and wallets, cryptos form an ecosystem with regulatory attention in many jurisdictions. Issues include price volatility, consumer protection, money-laundering controls, and taxation. Some networks have moved toward energy-efficient consensus schemes.

Risks include hacks, scams, and custody issues; technical complexity can hamper user experience and security. The long-term adoption of cryptos depends on scalability, interoperability, governance, and regulatory clarity.