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Cryptocurrency works through a decentralized ledger system called blockchain, which records and verifies transactions made with digital currencies. When a user initiates a transaction, it is broadcast to the blockchain network and verified by a network of computers called nodes. These nodes confirm the validity of the transaction using complex algorithms and cryptography, guaranteeing that the transaction is legitimate and that the user has enough funds to complete it.
Once the transaction is verified, it is added to a transaction block and added to the blockchain ledger. The ledger is maintained by the network of nodes, making it virtually impossible to manipulate or change transaction data. The user's cryptocurrency balance is then updated and the transaction is completed. Unlike traditional banking systems, there is no central authority overseeing cryptocurrency transactions, making them more transparent and secure.
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