What is digital currency

Digital currency refers to 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 intermediary institutions, so it has attracted more and more attention.

#Digital currency refers to 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 intermediary institutions, so it has attracted more and more attention.

The history of digital currency can be traced back to the 1990s. The earliest digital currency was electronic cash, which used digital signature technology to ensure security. However, due to the lack of a complete regulatory system and technical means, electronic cash has not become a popular payment method. Until 2009, Bitcoin appeared, ushering in a new era of digital currency. Bitcoin uses blockchain technology to ensure the reliability and security of transactions through a proof-of-work algorithm. The success of Bitcoin made the concept of digital currency known to more people, and also laid a solid foundation for the subsequent development of digital currency.

The characteristics of digital currency mainly include the following aspects:

Decentralization: The issuance and trading of digital currency are It is completed on a distributed network based on blockchain technology, without interference from a central organization. This decentralized feature makes digital currency more secure and anonymous.

Programmability: Digital currency transactions can be programmed, smart contracts can be implemented, and transactions can be made more automated and intelligent.

Anonymity: Digital currency transactions can be anonymous and do not require the disclosure of personal identity and private information, which makes the use of digital currency more private and secure.

Untamperability: Digital currency transaction records are stored on the blockchain and cannot be tampered with, ensuring the reliability and security of transactions.

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