All transactions and balances are recorded on a digital public ledger called a blockchain. Blockchains act as a list of records that contain data information like timestamps and transaction history.
Cryptocurrencies are also decentralized, meaning they are not controlled by any specific government or central banking system, unlike cash or debit and credit cards. They are instead controlled by users and computer algorithms.
Other popular cryptocurrencies include Ethereum, XRP, Tether, Litecoin, Monero and EOS. Even Facebook announced plans to start a cryptocurrency called Libra --- an idea that came under strong government scrutiny and quickly lost support.
This post contains material from a previous FOX Business article.