Capterra Glossary
Cryptocurrency
Cryptocurrency is any digital currency that uses cryptography to secure transactions and verify the exchange of currency ownership. Cryptocurrencies are decentralized networks based on immutable blockchain technology, making them immune to government interference or manipulation.
The first cryptocurrency brought into existence was Bitcoin, which was founded in 2009. Cryptocurrency units are created through a process called mining, where computer nodes solve complicated mathematical equations that generate coins. However, most cryptocurrency users receive their cryptocurrency by exchanging or purchasing it from other users.
What Small and Midsize Businesses Need to Know About Cryptocurrency
Cryptocurrencies offer small and midsize businesses benefits such as merchant protection, lower transaction fees, and exposure to new markets. Cryptocurrencies' decentralized nature ensures that all transactions are final, denying third parties the right to reverse charges. This helps protect companies from fraudulent chargebacks.
Organizations that accept cryptocurrencies can also save money on transaction fees. Credit card transaction fees often cost companies up to four percent of the transaction total, while cryptocurrency transactions' costs can be less than one percent.
Cryptocurrency users do not have to have a bank account to use cryptocurrency to make purchases. This allows companies that are looking to expand their consumer base into international markets to accept payments from international cryptocurrency users that otherwise would not be able to access their businesses products and services.
Related Terms
- Synchronous
- Software as a Service (SaaS)
- Intranet
- Security Orchestration, Automation and Response (SOAR)
- Identity and Access Management (IAM)
- Managed Service Provider (MSP)
- Haptics
- WAN (Wide-Area Network)
- Service-oriented Architecture (SOA)
- Augmented Reality (AR)
- Chief Information Officer (CIO)
- Security Information and Event Management (SIEM)
- Platform as a Service (PaaS)
- Service-Level Agreement (SLA)
- Scalability
- Data Center
- Authorization
- Multitenancy