Let’s recap: cryptocurrencies are globally accessible, digital currencies, enabled by blockchain technology.
So what’s this blockchain thing anyway?
Simplifying greatly, it acts as a distributed ledger.
2. Distributed means that anyone can access it, and anyone can check its validity (if they have the right software).
Because the ledger is held publicly, we don’t need to use a bank or any centralized authority to verify transactions or holdings–we can do that ourselves!
Let's take a look at an example to understand how verification works. The nuances are definitely not “beginner's guides” material (see our in-depth sections for more detail), but to provide a general idea we’ve prepared an analogy.