The encrypted one is a digital currency based on encryption technologies. Cryptocurrencies facilitate online payment processes without the need for third-party intermediaries, which is a feature and benefit among many of its advantages. Encryption is associated with a set of algorithms and protection methods, such as elliptical encryption and the public-private key pair, and hash functions.

Blockchain technology is a major attraction and essential effectiveness for Bitcoin and other cryptocurrencies. The blockchain is essentially a chain of blocks that contain information, linked to the digital ledger. Each block verifies a set of transactions that are independently verified by each verifier on the network. Each new block must be verified before being confirmed, making fraud difficult. Approval of the contents of the digital ledger must be obtained from a network of individual nodes, or computers that manage the ledger.