Cryptocurrencies operate without central authority through the use of decentralized networks that rely on blockchain technology. This allows transactions to be verified and recorded across multiple nodes in the network, promoting transparency and security. Each transaction is secured using cryptographic principles, and consensus mechanisms (like Proof of Work or Proof of Stake) validate transactions without the need for intermediaries such as banks. The decentralized nature of cryptocurrencies not only minimizes the risk of single points of failure but also empowers users with greater control over their funds and privacy.