---
title: "What do cryptocurrencies do?"  
description: "What do cryptocurrencies do?"  
author: "Sandra Emily"  
published: 2022-05-18  
canonical: https://answers.mindstick.com/qa/97460/what-do-cryptocurrencies-do  
category: "troubleshooting"  
tags: ["troubleshooting", "cryptocurrency"]  
reading_time: 1 minute  

---

# What do cryptocurrencies do?

What do cryptocurrencies do?

## Answers

### Answer by Hitesh Vohra

- **Cryptocurrency** is a decentralised digital currency that is secured by cryptography and is based on blockchain technology. To comprehend bitcoin, one must first grasp three concepts: blockchain, decentralisation, and cryptography.
- In the context of cryptocurrencies, blockchain is a digital ledger whose access is dispersed among authorised users. This ledger keeps track of transactions involving a variety of assets, including money, real estate, and even intellectual property.
- Users share access, and any information sent is clear, instantaneous, and 'immutable.' Anything recorded on the blockchain is immutable, meaning it cannot be changed or tampered with - even by the administrator.
- Mining, which is employed by Bitcoin, is one of the most popular ways cryptocurrencies are created. Mining is a time-consuming process in which computers solve complicated riddles in order to validate the validity of network transactions. The owners of those computers may earn newly minted cryptocurrency as a reward. Other cryptocurrencies manufacture and distribute tokens in different ways, and several have a substantially lower environmental impact.

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**Read More: [How does blockchain work?](https://answers.mindstick.com/qa/97462/how-does-blockchain-work)**


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