Cryptocurrency is a digital currency which does not exist in the real world but as a virtual digit asset only. Since it refers to a virtual currency therefore when transacting, specific cryptography techniques are used in order to secure the end to end transaction. These transactions are executed through the use of public and private keys in order to make it highly secure.
Cryptocurrency is a decentralized digital asset which is not issued by any central bank or country level authority. Due to its decentralized nature, the transactions involve the use of minimal processing fee and charges as compared to the conventional transfers handled by the financial institutions such as banks who charge a handsome fee to support such transactions.
The underlying technology infrastructure supporting cryptocurrencies such as Bitcoin is blockchain that uses an online distributed ledger bringing the visibility of the transactions being conducted using a cryptocurrency like Bitcoin.
Banks are facing a big threat due to cryptocurrency and reevaluating their heavy duty technology infrastructures these days and how long those can still support the evolving nature of the payments. Some are in fact investing a lot into blockchain technology infrastructure to find and establish new business models.
Note: we will go into the details of the above aspects one by one in the later series of knowledge development.