Glossary of digital money

Cryptocurrency:

Any digital money that is created, controlled and transferred using computer encryption. Most popular cryptocurrencies, including bitcoin and ethereum, are not issued or backed by a central government, though some governments have tinkered with creating digital currencies of their own.

Bitcoin:

The original cryptocurrency, created in 2009. The currency traded for a few hundred dollars per coin for most of the last few years but has seen its price skyrocket this year, climbing from about $1,000 to upward of $15,000 — with a few deep plummets along the way.

Blockchain:

An accounting tool that underpins bitcoin and other cryptocurrencies but is thought to have numerous other applications, such as logging stock and real estate transactions. The blockchain is a “distributed ledger” — that is, a transaction record that is not managed by a central government or bank but run publicly online.

ICO:

An initial coin offering, or the sale of a new cryptocurrency to investors. Sometimes these offerings are structured as sales of coins that can later be used to purchase goods or services from the company issuing the coins. But ICOs to this point have been largely unregulated and investors may find the coins they buy are worthless.