Definition:

Cryptocurrency is digital money that is protected by cryptographic codes and is based on blockchain technology which is a decentralized registry system, where transactions are recorded publicly and permanently. Instead of a central authority like in the case of regular fiat currencies that are issued by governments, cryptocurrencies are usually controlled by a decentralized network of computers, or nodes.

Thousands of cryptocurrencies exist with their purpose of use. Examples include:

• Bitcoin (BTC) - Store of value
• Ethereum (ETH) Decentralized apps and smart contracts
• Stablecoins (USDT, USDC) - Fiat-pegged, stable price
• Utility tokens - Utility tokens are consumed in ecosystems (e.g., Chainlink, Uniswap)

Crypto’s Use in Business and Finance:

• Borderless Transactions: Cryption payments take minutes to settle, anywhere in the world.
• Smart Contracts: Proцессауtomatisation (escrow, supply chain, royalties).
• Tokenization: It is possible to digitally own and trade assets such as real estate or art.
• Cost Savings: It does not incur high transaction fees charged by conventional banks.

Business Example:

A global freelancer earns payments in USDC (a stablecoin) without experiencing delays in the bank, and the transaction fee is close to zero, and the settlement is instantaneous even on weekends.

Risks & Considerations:

• Unpredictable change in token value
• Uncertainties in certain countries in terms of regulations
• Security vulnerability in case of compromised wallets