Electronic currency is money or funding only exchanged electronically. Typically, this involves the use of computer networks, and in this article, cryptography. Bitcoin is the main e-currency to use cryptography, although some other currencies including Devcoin do too.

Bitcoin uses public key cryptography as any Bitcoin contains the owner's public key. When a Bitcoin is transferred from user to user, User 1 adds the other user's public key to the Bitcoin, and the coin is signed using the original user's private key. The other user now owns the coin and do what they want with it - the original user can not do anything with the amount after it has been sent. It can not be reversed, either. This system applies with various other electronic currencies similar to Bitcoin.

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