Cryptocurrency is a kind of alternative and digital currency which uses cryptography for securing financial transactions. Cryptocurrency is characterised by decentralized control with no third party involved as opposed to central banking systems. It was projected in order to let parties transact in a secure, transparent and immutable way.
Currently, more than 4000 cryptocurrencies are listed on over 7,500 special stock exchanges. Most cryptocurrencies are based on different types of blockchain technology. The code is usually based on open-source software.
From the financial side, the distribution of cryptocurrencies may be related to the Initial Coin Offer (ICO) procedure, aimed at gathering the initial capital necessary for the further development of the system. Another purpose of creating cryptocurrencies and tokens is token marketing consisting in their use in promotional and motivational activities, e.g. prizes in contests and loyalty programs. Tokenization is mainly carried out in the Ethereum environment.
The first and most well-known decentralized cryptocurrency is Bitcoin.