The core technology of cryptocurrencies is blockchain, which has brought many innovations. The distributed ledger of blockchain allows transaction information to be recorded by multiple nodes, making it difficult to tamper with and ensuring the authenticity and security of data.

Smart contracts are also an important application of blockchain technology. They can automatically execute contract terms without the need for third - party supervision, reducing transaction costs and human errors. In addition, new encryption algorithms are constantly emerging, further enhancing the security and privacy of cryptocurrencies. These technological innovations not only promote the development of cryptocurrencies but also provide new ideas for the digital transformation of other industries.