> ## Documentation Index
> Fetch the complete documentation index at: https://docs.trabajosonline.org/llms.txt
> Use this file to discover all available pages before exploring further.

# Cryptocurrency Fundamentals

# Cryptocurrency Fundamentals

**Cryptocurrencies** are a type of digital currency that uses cryptography to secure transactions and control the creation of new units. Unlike traditional currencies, cryptocurrencies are not backed by a government or central bank, making them decentralized and resistant to censorship.

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  💡 <strong>Good to Know / Tip - Recommendation</strong><br />
  If you are new to the world of cryptocurrencies, you can check the following link, with basic concepts explained at <strong><a href="https://ethereum.org/en/what-is-ethereum/" style={{ color: '#007bff' }}>What is a cryptocurrency?</a></strong> It will help you understand what a wallet is and other fundamental concepts in the crypto space like blockchain, token, network...
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### How Do Cryptocurrencies Work?

Cryptocurrencies operate through a network of distributed computers that use a public ledger called **blockchain** to record all transactions. Each transaction is grouped into a block and added to the existing blockchain, creating an immutable history of all transactions.

### More about Blockchain

The **blockchain** is a public and decentralized ledger that records all transactions of a cryptocurrency in chronological order. Each block in the chain contains a set of transactions and a timestamp that links it to the previous block, creating a chain of blocks that is immutable and resistant to manipulation.

### What is Mining?

**Mining** is the process of validating transactions and adding new blocks to the blockchain. **Miners** use computing power to solve complex mathematical problems that verify transactions and create new blocks. In return, miners receive a reward in the form of cryptocurrency.

### What is a Wallet?

A **wallet** is a program or device used to store, send, and receive cryptocurrencies. Wallets can be software, hardware, or paper, and they use public and private keys to secure transactions.

### What is a Smart Contract?

A **smart contract** is a computer program that automatically executes when certain conditions are met. Smart contracts are used on blockchains to automate transactions and agreements without the need for intermediaries.

### What is a Token?

A **token** is a unit of value issued by an organization that represents a specific asset or utility. Tokens are used on blockchains to represent digital assets such as shares, bonds, properties, or currencies.