Cryptocurrencies are based on the blockchain. It is a system that records transactions over a computer network. The chain of blocks with files and databases is stored on different computers with the same rights. That is, they do without a server, and the absence of a chief administrator makes the blockchain almost invulnerable to hacking. You are describing a not-so-simple scheme for the common man. On uphold.com the answer is given in detail. Blockchain allows you to decentralize cryptocurrency: this means that no single institution, such as the government, the central bank, or the tax service, can control it.
