A distributed system refers to a network of interconnected computers that work together to achieve a common goal. In this setup, each node, or computer, maintains its own copy of the data and helps process transactions.In the context of cryptocurrencies, a distributed system allows for decentralized control. Instead of a single authority managing the data, multiple participants contribute to the network’s operation. This enhances security and reduces the risk of a single point of failure.Transactions are recorded on a public ledger known as the blockchain. Each node validates and stores new transactions, ensuring consensus across the network. This method prevents manipulation and fosters transparency, as all users can verify data independently.Moreover, distributed systems promote resilience. If one node goes offline, the network continues to function through the remaining nodes. This characteristic is vital for maintaining trust and reliability in digital currency transactions. Overall, distributed systems are fundamental for the operation and trustworthiness of cryptocurrencies.