Cryptocurrency (short - crypto) is a form of digital asset secured by cryptographic techniques. It functions on a blockchain platform, a type of decentralized system where a distributed ledger is upheld by a collective network of computers, commonly known as nodes.

One of the key functions of a cryptocurrency is its role in the operation of the blockchain networks themselves. It is used as an incentivization tool for network participants. These participants are rewarded with cryptocurrency for their contributions to the network, like validating transactions and maintaining the network's security.

Moreover, cryptocurrency is used beyond the blockchain. It can serve as an incentivization tool in various applications, specifically in the emerging sector of Decentralized Finance (DeFi). In DeFi platforms, tokens (a type of digital asset) can be used to incentivize user participation, such as through yield farming or liquidity mining rewards. If you're planning to launch your own token within a DeFi system, this function is particularly pertinent.

Key characteristics of crypto include decentralization, security, anonymity, and global accessibility. People without access to traditional banking systems now have an opportunity to send and receive money, contributing to financial inclusion with the help of digital assets.