Crypto exchange FTX filed for Chapter 11 bankruptcy protection in the United States recently following its collapse.
- FTX is short for "Futures Exchange”.
- FTX is one of the biggest exchanges where trading those digital assets took place, and was touted by regulators and market watchers as one of the most transparent crypto operations.
- A crypto exchange is in the business of helping customers buy and sell cryptocurrencies.
- A cryptocurrency is a digital or virtual currency that is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend.
- Many cryptocurrencies are decentralized networks based on blockchain technology - a distributed ledger enforced by a disparate network of computers.
- A distributed ledger is a database that is consensually shared and synchronized across multiple sites, institutions, or geographies, accessible by multiple people.
- It allows transactions to have public "witnesses".
- Any changes or additions made to the ledger are reflected and copied to all participants in a matter of seconds or minutes.
- A defining feature of cryptocurrencies is that they are generally not issued by any central authority, rendering them theoretically immune to government interference or manipulation.
Source : Indian Express