What are digital currencies?
Digital currencies are a type of currency that is traded electronically over the internet and does not exist in physical form like banknotes or coins. They rely on encryption technologies to secure and verify transactions, with the most famous of these currencies being Bitcoin, which emerged in 2009 by a person or group known as 'Satoshi Nakamoto'.
Types of digital currencies
Bitcoin: The first digital currency, considered a reference for other currencies.
Ethereum: Based on smart contracts and used to build decentralized applications.
Ripple/XRP: Used for transferring money across borders quickly and at a low cost.
Litecoin, Cardano, and Solana: Currencies that offer different solutions in terms of speed, cost, and security.
How do digital currencies work?
Digital currencies rely on a technology called blockchain, which is a chain of blocks that records all transactions. Each transaction is confirmed by a network of computers distributed around the world, making forgery or manipulation nearly impossible.
