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Basics of Cryptocurrency and Blockchain

The document provides an overview of cryptocurrency and blockchain technology as of 2025, highlighting their impact on finance, security, and various applications. It explains key concepts such as digital currencies, decentralized ledgers, and the process of crypto transactions. Additionally, it addresses risks associated with these technologies, emphasizing the importance of understanding their fundamentals for future innovation and financial inclusion.

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mamata Mishra
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17 views2 pages

Basics of Cryptocurrency and Blockchain

The document provides an overview of cryptocurrency and blockchain technology as of 2025, highlighting their impact on finance, security, and various applications. It explains key concepts such as digital currencies, decentralized ledgers, and the process of crypto transactions. Additionally, it addresses risks associated with these technologies, emphasizing the importance of understanding their fundamentals for future innovation and financial inclusion.

Uploaded by

mamata Mishra
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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📘 Basics of Cryptocurrency and Blockchain (2025 Edition)

Introduction

Cryptocurrency and blockchain technology have significantly reshaped the financial and tech
industries. In 2025, they continue to influence not just digital transactions, but also data
security, smart contracts, and decentralized apps. This guide explains the fundamentals of
crypto and blockchain for beginners.

What is Cryptocurrency?

A cryptocurrency is a digital currency that uses cryptography to secure transactions. Unlike


traditional currencies, it operates independently of a central bank. The most well-known
examples include:

 Bitcoin (BTC) – The first and most valuable cryptocurrency.


 Ethereum (ETH) – Known for smart contracts and decentralized applications.
 Solana (SOL), Cardano (ADA), Polygon (MATIC) – Emerging platforms with
strong ecosystems.

Cryptocurrencies are stored in digital wallets and recorded on a public ledger called the
blockchain.

What is Blockchain?

A blockchain is a decentralized, distributed ledger that records transactions across many


computers so that the record cannot be altered retroactively. Each record, or "block," is linked
to the previous one, forming a chain.

Key Features:

 Decentralization: No single entity controls the system.


 Transparency: Anyone can verify transactions on public blockchains.
 Security: Data cannot be easily tampered with.
 Smart Contracts: Self-executing contracts with the terms directly written into code.

How Does a Crypto Transaction Work?

1. A user sends cryptocurrency from one wallet to another.


2. The transaction is verified by nodes (computers) using consensus algorithms (e.g.,
Proof of Work or Proof of Stake).
3. Once verified, the transaction is added to a block.
4. The block is added to the blockchain permanently.

Applications of Blockchain Beyond Crypto

 Finance: Cross-border payments, DeFi (Decentralized Finance)


 Healthcare: Secure patient data sharing
 Supply Chain: Tracking product origins
 Voting: Transparent digital elections
 Intellectual Property: Ownership verification for digital art (NFTs)

Risks and Considerations

 Volatility: Crypto prices can fluctuate wildly.


 Regulation: Legal frameworks are still evolving.
 Security: Wallets and exchanges can be hacked if not secured properly.
 Scams: Always verify before investing in new coins or ICOs.

Conclusion

Cryptocurrency and blockchain offer exciting opportunities for innovation and financial
inclusion. As the technology matures, understanding its basics will be vital for professionals,
investors, and tech enthusiasts. In 2025, these technologies are no longer niche — they are
shaping the future.

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