摘要：
Digital currency, also known as cryptocurrency, is a type of virtual currency that usescry... 
Digital currency, also known as cryptocurrency, is a type of virtual currency that uses
cryptography to secure and verify transactions and to control the creation of
new units. It operates independently of a central bank and can be transferred
instantly across borders with very low fees. But how does digital currency work?
1. Blockchain technology: The foundation of digital currency is blockchain technology, which is a decentralized ledger that records all transactions in a secure and transparent manner. Each block in the chain contains a record of multiple transactions, and once a block is added to the chain, it cannot be altered or deleted. This makes it virtually impossible for anyone to tamper with the data on the blockchain.
2. Cryptography: Cryptography is used to secure and verify digital currency transactions. When a user sends money to another user, the transaction is encrypted and broadcasted to the network of computers that make up the blockchain. Each computer in the network validates the transaction by solving a complex mathematical puzzle, and once enough validations are received, the transaction is recorded on the blockchain.
3. Mining: Miners are individuals who use their computers to solve complex mathematical problems in order to validate transactions and add new blocks to the blockchain. In return for their work, miners are rewarded with newly minted digital currency.
4. Smart contracts: Smart contracts are self-executing contracts with the terms of the agreement between buyer and seller being directly written into lines of code. They allow for automatic execution of contractual obligations when certain conditions are met, eliminating the need for intermediaries such as lawyers or banks.
5. Digital wallets: Digital wallets are software programs that store private keys used to access a user's digital currency holdings. Users can send and receive digital currency from their digital wallets, making it easy and convenient to use.
In conclusion, digital currency operates using blockchain technology, cryptography,
mining, smart contracts, and digital wallets. These technologies work together
to create a secure and transparent system for exchanging value without the
need for intermediaries like banks. As more people become familiar with digital
currency and its benefits, it is likely that we will see even more innovative
solutions emerge in this space.
