# Cryptocurrency The term cryptocurrency describes online digital currency for which transactions are recorded and stored in multiple identical public ledgers by a decentralized network of peers. While the ledgers are public, they may be designed so that privacy is somehow protected. This contrasts with regular fiat currency which often takes a digital form - ones and zeros in your bank account. But this digital form is maintained in private ledgers by centralized authorities. The authority keeps backups, but you can’t participate in the process and you can’t directly audit anything to make sure the system is uncorrupted. #### How is cryptocurrency relevant to the Network State? Fiat currencies require centralized authority. Cryptocurrencies are decentralized by design, the perfect tool for the Network State economy. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://gitbook.jur.io/wiki-network-state/dictionary/cryptocurrency.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.