Derived from the encryption algorithms and cryptographic techniques used to secure the network, “cryptocurrency” is a digitally-produced asset or currency based on a network that is distributed across a large number of computers.
Cryptocurrencies serve as systems that enable secure online payments using virtual tokens as denominations. These tokens are represented by ledger entries internal to the system. Cryptocurrencies work using blockchain technology, making it a decentralized structure spread across computers.
Bitcoin was the first blockchain-based cryptocurrency created.