Instead of using paper money or a debit card where verification is traced back to banks, crypto purchases solely exist as entries in an online database for any transaction. These transactions get recorded in a single public spreadsheet called a ledger.
Cryptocurrency received its name because it uses encryption to verify transactions. Advanced coding is involved in storing and transmitting cryptocurrency data between wallets and public ledgers. Encryption aims to provide security and safety.
There is one public ledger and many copies of it available to anyone on the network. Instead of one bank confirming one transaction, each transaction is verified across these ledgers cross-referencing each copy to verify the purchase.
For example, Bitcoin saw tremendous highs compared to its initial value. Bitcoin began trading at just $0.0008 on the cryptocurrency market. On April 9, 2022, a single Bitcoin reached over $42,000 in value, and that's not even a historical high.