Unlike traditional currencies, no single person or institution regulates cryptocurrencies. Instead, control is maintained through the "public eye" of the Internet combined with robust underlying algorithms.
Ensuring Currency Integrity
The integrity of the currency relies on these algorithms to ensure the system remains secure. Key protections include:
- No Falsification: Prevention of fraudulent creation or alteration of currency.
- No Double-spending: Ensuring the same unit of currency cannot be spent more than once.
- Safety of Storage: Secure preservation of transaction records and balances.
Relationship with Traditional Institutions
The emergence of cryptocurrency as an alternative form of money challenges the current monopoly held by traditional financial suppliers. Consequently, it is often viewed critically by:
- Governments.
- Central Banks.
