Glossary · H

How does cryptocurrency work?

Last reviewed:

Cryptocurrency works by keeping a shared record of who owns what on a blockchain. Each owner has a private key that signs payments. When you send coins, the network checks your signature and balance, then adds the payment to a new block. No bank sits in the middle; the network's rules and the people running it keep the record honest.

Hands turning the pages of a book

Related terms

Join the Academy

Start here. Learn first. The sample lessons, topic pages and glossary are open to read, with no card and no signup.

Start with Lesson 1