How does cryptocurrency work?

Cryptocurrency works by using blockchain technology, which is a type of distributed ledger. This ledger contains records of all the transactions on the network and is shared between users in the cryptocurrency’s network. When someone sends or receives cryptocurrency, a new ‘block’ is created that contains the details of the transaction, including the sender, recipient, and amount of cryptocurrency transferred. This block is then broadcast to all the other computers in the network, known as nodes, which verify that the transaction is valid before adding it to the chain. The chain is secured using cryptography, making it extremely difficult for any bad actors to tamper with the chain. Once the new block is added, it cannot be reversed or changed, ensuring that the transaction is secure and immutable.