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Cryptocurrency is a type of digital or virtual currency that uses cryptography for security and operates independently of a central authority, such as a government or a bank. It is decentralized and typically based on blockchain technology, which is a distributed ledger that records all transactions across a network of computers.

Some key features of cryptocurrencies include:

1. **Decentralization**: Cryptocurrencies operate on a decentralized network of computers (often referred to as nodes), which means that no single entity has control over the currency. This decentralization is achieved through blockchain technology.

2. **Cryptography**: Cryptocurrencies use cryptographic techniques to secure transactions and control the creation of new units. This ensures the integrity and security of the currency.

3. **Peer-to-peer Transactions**: Transactions in cryptocurrencies are conducted directly between users without the need for intermediaries like banks. This can lead to faster and cheaper transactions, especially for cross-border payments.

4. **Limited Supply**: Many cryptocurrencies have a predetermined supply limit, meaning that there is a maximum number of coins or tokens that can ever be created. For example, Bitcoin has a maximum supply of 21 million coins.

5. **Anonymity and Privacy**: While transactions are recorded on the blockchain and are therefore transparent, the identities of the parties involved are often pseudonymous. This can provide a certain level of privacy and anonymity for users.

Bitcoin, created in 2009 by an unknown person or group of people using the pseudonym Satoshi Nakamoto, was the first cryptocurrency and remains the most well-known and widely used. Since then, thousands of other cryptocurrencies, often referred to as altcoins, have been created, each with its own unique features and purposes. Examples of other popular cryptocurrencies include Ethereum, Ripple (XRP), Litecoin, and Cardano.