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Decentralized currency

Decentralized currency refers to cryptocurrencies such as Bitcoin and Ethereum, which are decentralized and operate without a central authority or intermediary. Transactions are validated and published on a public blockchain ledger, which is maintained by a decentralized network of nodes throughout the world.

Compared to standard fiat currency, decentralized currency provides a number of benefits. Since there is no central authority that can freeze or control transactions, it is more resistant to censorship and government intervention. It is also more transparent, due to the fact that every transaction is recorded and anyone can audit and verify it.

Decentralized currencies do, however, face difficulties with scalability, volatility, regulatory uncertainty and ease of fraud.