What is Cryptocurrency?

Cryptocurrency-a kind of digital (electronic) currency, the creation and control of which are based on cryptographic methods[1][2][3][4]. As a rule, cryptocurrency accounting is decentralized[5][2]. The functioning of these systems is based on such technologies as blockchain, directed acyclic graph, consensus register (ledger), etc[6]. Transaction information is usually not encrypted and is available in clear text. To ensure the immutability of the base of the transaction block chain, cryptography elements (digital signature based on the public key system, sequential hashing) are used.

The term was fixed after the publication of an article on the Bitcoin system "Crypto currency" (Cryptographic currency), published in 2011 in the journal Forbes[7]. The very author of bitcoin, like many others, used the term "electronic cash" (eng. electronic cash).

Sometimes a new cryptocurrency appears as a branch (fork) of another currency by changing the parameters, which makes them incompatible. In this case, both cryptocurrencies can have a common transaction history until the moment of separation.

Emission of different cryptocurrencies can occur through mining, forging or ICO.

The economic essence and legal status of cryptocurrencies are being discussed. In different countries, cryptocurrencies are considered as a means of payment, a specific product, may have restrictions in circulation (for example, a ban on transactions with them for banking institutions).