C ryptocurrency is a math-based, convertible, decentralized virtual currency that is protected by cryptography. It relies on public and private keys to transfer value from one individual or entity to another, and it must be cryptographically signed each time it is transferred.
The safety, integrity and balance of cryptocurrency ledgers is ensured by a network of mutually distrustful parties who protect the network in exchange for the opportunity to obtain a randomly distributed fee. Bitcoin, virtual currency created in 2009, proves to be the first well-known decentralized convertible, peer-to-peer network utilizing the public ledger (blockchain) technology.
The bitcoin transactions are recorded on a public ledger and available for anyone to verify excluding the need for third party intermediaries. The prominence of Bitcoin resulted in emergence of hundreds of cryptocurrency specifications, as of 2018 1 600 and growing, deriving from Bitcoin, which uses a proof-of-work system to validate transactions and maintain the block chain.
While Bitcoin provided the first fully implemented cryptocurrency protocol, there is growing interest in developing alternative, potentially more efficient proof methods, such as systems based on proof-of-stake, more anonymous cryptocurrencies (i.e. Monero, Dash, and Zcash), self-executing or smart contracts (i.e. Ethereum).
Due to the innovative nature of cryptocurrencies, complex regulations and legal ambiguities of emerging digital market, we are actively up to date on regulatory changes, corporate legal framework and technological developments across multiple jurisdictions.