What is digital currency

Digital currency is a form of currency based on digital technology that can be used as a means of payment. The issuance and transactions of digital currency are completed on a distributed ledger based on cryptography, which is a decentralized A payment method without interference from intermediaries, enabling anonymous transactions.

Digital currency is a form of currency based on digital technology that can be used as a means of payment.

Different from traditional currencies, the issuance and transactions of digital currencies are completed on a distributed ledger based on cryptography, which is called a "blockchain". Digital currency is a decentralized payment method that can achieve anonymous transactions without the interference of intermediaries. Digital currency is an electronic form of alternative currency that does not physically exist, but is a currency with a specific value that can be used for real commodity transactions or other purposes. Digital currency has the characteristics of network data. The data in digital currency shows the currency type, value and other information of the currency. my country's central bank digital currency is a legal digital currency planned to be issued with the approval of the State Council. It is legally compensable and is a legal currency that no institution, business or individual can refuse to accept. 123

The essential characteristics of digital currency are:

1. The key is a cryptographic algorithm;
2. Water flow accounting and credit;
3. The entire account uses blockchain technology;
4. P2P network layer protocol;
5. Electronic payment system software.

## Digital currencies are usually developed by Issued and managed by the author, accepted and used by members of a specific virtual community. Digital currency has the main characteristics of network data packets. This type of data packet is composed of a data code and an identification code. The data code is the content that needs to be transmitted, and the identification code specifies where the data packet comes from, where it is going, and other attributes. Digital currency can be used for real transactions of goods and services, or as a digital representation of the value of a currency substitute.

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