A cryptocurrency is a virtual currency used to exchange goods and services through a system of electronic transactions without the need for an intermediary.
When comparing a cryptocurrency with fiduciary money, the most notable difference is the way in which no group or individual can accelerate the production of money and use it illegally or abusively in a significant way, since only a certain number of units are generated collectively.
Dozens of cryptocurrencies with different specifications have already appeared, but most of them are similar or derived from the first one that has been fully implemented; the Bitcoin. In cryptocurrency systems, the security, integrity and balance of your account statements are guaranteed by means of a network of mutually verified agents called “miners”, who are, for the most part, general public and actively protect the network, maintain a high rate of processing of algorithms, in order to have the opportunity to receive a small tip, which is distributed in a random manner.
The first cryptocurrency was Bitcoin, which was created in 2009 by the developer Satoshi Nakamoto, and uses the cryptographic functions set SHA-2 (the SHA-256) as its POW (proof-of-work) scheme.
1- Subsequently, other cryptocurrencies have appeared, such as Namecoin (an attempt to decentralize the DNS domain name system, which would make Internet censorship very difficult).
2- Litecoin (which uses scrypt as a POW (proof-of-work) scheme, as well as, to have a faster transaction confirmation).
3- Peercoin (which uses a POW/POS hybrid scheme [proof-of-work/proof-of-stake], also has an inflation rate of around 1%).
4- Freicoin (which implemented the concept of Silvio Gesell adding demurrage [a kind of cost for having the money]).