What is cryptocurrency and how does it work?

The world of cryptocurrency can feel a lot like the Wild West. Its origins are as shaky as its rise has been shady. The buzz started with Bitcoin: A computerized algorithm generates a digital token of exchange that’s registered on a public database (i.e a blockchain).

What was the first cryptocurrency?

It is the first known example of what would become cryptocurrency. 1997: Building on what Chaum had started, cryptographer and cypherpunk Adam Back invents Hashcash, which uses a “proof of work” system that will later make Bitcoin mining possible. See: How Does Cryptocurrency Work – and Is It Safe?

How many cryptocurrencies are there?

Currently, there are over 4,000 cryptocurrencies, but the large portion of this number might be insignificant. Bitcoin remains the world’s largest cryptocurrency, and blockchain technology continues to disrupt many industries as its benefits are seemingly bringing great impact.

What is roiling the crypto industry?

Yuki Iwamura/Associated Press The crisis roiling the crypto industry captured public attention with the collapse of FTX this past November and the arrest soon after of the exchange’s founder, Sam Bankman-Fried. The industry’s troubles began months before—and has continued to spread since.