# what is crypto

By [crypto devil](https://paragraph.com/@crypto-devil) · 2022-05-17

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A **cryptocurrency**, **crypto-currency**, **crypto**, or **coin** is a [digital currency](https://en.wikipedia.org/wiki/Digital_currency) designed to work as a [medium of exchange](https://en.wikipedia.org/wiki/Medium_of_exchange) through a [computer network](https://en.wikipedia.org/wiki/Computer_network) that is not reliant on any central authority, such as a [government](https://en.wikipedia.org/wiki/Government) or [bank](https://en.wikipedia.org/wiki/Bank), to uphold or maintain it.[\[2\]](https://en.wikipedia.org/wiki/Cryptocurrency#cite_note-:02-2)

Individual coin ownership records are stored in a digital [ledger](https://en.wikipedia.org/wiki/Ledger), which is a computerized [database](https://en.wikipedia.org/wiki/Database) using [strong cryptography](https://en.wikipedia.org/wiki/Strong_cryptography) to secure [transaction](https://en.wikipedia.org/wiki/E-commerce) records, to control the creation of additional coins, and to verify the transfer of coin ownership.[\[3\]](https://en.wikipedia.org/wiki/Cryptocurrency#cite_note-crypto_currency-3)[\[4\]](https://en.wikipedia.org/wiki/Cryptocurrency#cite_note-reuterspricing-4)[\[5\]](https://en.wikipedia.org/wiki/Cryptocurrency#cite_note-5) Despite their name, cryptocurrencies are not considered to be [currencies](https://en.wikipedia.org/wiki/Currency) in the traditional sense and while varying treatments have been applied to them, including classification as [commodities](https://en.wikipedia.org/wiki/Commodity), [securities](https://en.wikipedia.org/wiki/Security_\(finance\)), as well as currencies, cryptocurrencies are generally viewed as a distinct asset class in practice.[\[6\]](https://en.wikipedia.org/wiki/Cryptocurrency#cite_note-6)[\[7\]](https://en.wikipedia.org/wiki/Cryptocurrency#cite_note-7)[\[8\]](https://en.wikipedia.org/wiki/Cryptocurrency#cite_note-8) Some crypto schemes use validators to maintain the cryptocurrency. In a [proof-of-stake](https://en.wikipedia.org/wiki/Proof_of_stake) model, owners put up their tokens as collateral. In return, they get authority over the token in proportion to the amount they stake. Generally, these token stakers get additional ownership in the token over time via network fees, newly minted tokens or other such reward mechanisms.[\[9\]](https://en.wikipedia.org/wiki/Cryptocurrency#cite_note-proof-stake-eth-9)

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*Originally published on [crypto devil](https://paragraph.com/@crypto-devil/what-is-crypto)*