Cryptocurrency
Cryptocurrency is a digital or virtual currency that uses cryptography for security and operates on decentralized networks, typically based on blockchain technology. It enables peer-to-peer transactions without the need for intermediaries like banks, with Bitcoin being the first and most well-known example. The term 'volatile' often describes cryptocurrencies due to their frequent and significant price fluctuations driven by market speculation, regulatory news, and technological developments.
Developers should learn about cryptocurrency to build decentralized applications (dApps), smart contracts, and blockchain-based systems, which are increasingly used in finance, supply chain, and digital identity. Understanding its volatility is crucial for creating risk-aware trading platforms, financial tools, and secure transaction protocols, as it impacts user experience and system stability in real-world applications.