How cryptocurrency works
Crypto networks aim to answer a simple question: who owns what, right now? They do it in three layers:
Cryptography protects accounts and transactions with public/private keys. Your public key is like an address; your private key proves you’re allowed to move funds from that address.
Blockchain is a shared ledger made of “blocks” of transactions that are linked together. Each block references the previous one, making the history tamper‑resistant.
Consensus is how the network agrees on the latest valid state. Two common mechanisms are:
Proof of Work (PoW): Specialized computers compete to add the next block. High security, higher energy use.
Proof of Stake (PoS): Participants lock (“stake”) tokens to help validate blocks. Misbehavior can be penalized; energy use is drastically lower than PoW.
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