What are Crypto Currencies and How Do They Work?

Crypto assets are digital assets whose core security infrastructure is built using advanced cryptography (the science of encryption) methods and which function independently of any central authority, institution, or government, unlike traditional financial systems. Having no physical form, these assets offer direct and intermediary-free transfer capabilities thanks to peer-to-peer network structures.

The operating principle of crypto assets is based on a distributed ledger technology called blockchain. Rather than a single center, all transfers performed are validated in chronological blocks, encrypted, and recorded by thousands of independent computers (nodes) connected to the network. While making it impossible to retroactively alter or manipulate data, this distributed and transparent network architecture ensures that all financial processes are conducted in a secure, traceable, and transparent manner.