What is Cryptocurrency Why is it called Cryptocurrency?
The advantage of Bitcoin and other cryptocurrencies is that they use cryptography and blockchain technology to secure and verify every transaction so that no party can double-spend (spend the same digital asset twice).
Blockchain technology allows cryptocurrency to be controlled and monitored in a decentralized manner, peer to peer, between one computer and another connected computer. This way of monitoring (1) ensures crypto security and (2) differentiates it from common currency. In the Rupiah currency, for example, Bank Indonesia as the Central Bank functions as the only institution to oversee the circulation of the Rupiah.
Central banks in other countries also perform the same function for the currencies of their countries. In crypto, this monitoring function is carried out by server computers around the world, which are connected to each other, which is why it is called a 'blockchain'. All of these servers will record every bitcoin transaction in the "General Ledger" or ledger, which contains the bitcoin mutation records.
Due to its decentralized nature, bitcoin cannot be manipulated, for example for double-spending (it has been reused). Everything is logged on the server, cannot be changed, is transparent and is recorded in many places.
