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What are cryptocurrencies?

A cryptocurrency is a digital method of payment that is protected from forgery, copying, or modification. Every virtual "coin" has its own unique ID, and transactions with cryptocurrencies are carried out anonymously through the use of special keys. It's impossible to cancel a transaction that has already been completed.

Information about transactions is usually openly available. For the bitcoin, the most popular cryptocurrency, information is stored using blockchain technology, where each subsequent block of data contains the hash of the previous block, making every block in the chain inextricably linked.

Cryptocurrencies are created, issued and traded without any kind of internal or external administrative framework, and without any kind of central control or physical embodiment. Because of this, attitudes towards digital currencies vary, and there is, as of yet, no real consensus about their economic or legal status.

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