Cryptocurrency
Cryptocurrencies have different characteristics with respect to the currency we normally associate with. Two main differences are decentralization and, as the name suggests, cryptography. When a currency is decentralized, it is not controlled by one entity. Bitcoins, for example, are released as a byproduct when a batch of transactions are verified. Verification occurs with the computing power of certain users on the network. This, and other features, creates a currency that is shared among its users and is one reason why Bitcoin has many passionate followers.

These features make cryptocurrencies harder to be accepted by a government as control is out of their hands. As seen in the news with trail-blazing Bitcoin, these cryptocurrencies must follow strict regulation to be accepted. While this may be a sticking point for governments, it has proved to be a popular feature for consumers.

Another aspect of cryptocurrencies is the built-in implementation of cryptography in their design. For Bitcoin, this manifests in the form of public-key cryptography also known as asymmetric encryption. Asymmetric encryption employs a private and public key, allowing the creation of a digital “signature” that can be used to authorize transactions.