Did You Know — Cryptocurrencies

Cryptocurrencies are digital instruments designed to mimic real currencies, but which do not exist in any physical form. They operate using online ledgers with advanced cryptography to secure the transaction records.

Cryptocurrency ledgers are distributed ‘consensus’ ledgers, meaning they are not centralised in one location. They are synchronised across sites, countries or institutions often using blockchain technology. The main advantage is the lack of a central administrator. Ownership can only be proved by the distributed ledger and not by a single authority.

Bitcoin was the world’s first cryptocurrency in 2009 and there are now more than 4,000 privately operated cryptocurrencies in existence.