Cryptocurrency is a form of digital currency that is not backed by any government or central banking authority. It uses encryption techniques to regulate the generation and transfer of funds and to verify the transfer of assets. Cryptocurrencies are decentralized, meaning that they are not issued or controlled by any single entity. This allows for faster and cheaper international payments, as well as greater anonymity for users. Compared with traditional currencies, cryptocurrencies are also immune to inflation and their supply is predetermined.