What is Crypto Currency

Cryptocurrency: A digital asset that has value tracked through transactions which are verified, recorded, & maintained by a decentralized network. Using cryptography which is a permanent set of rules placed on a asset giving it a particular value. This is done automatically by the system rather than by a centralized authority such as banks and governments. Most popular amongst these being the Blockchain network.

  • Top 3 Cryptos by Market Cap: Bitcoin, Ethereum, & Binance. All of which serve different purposes and sectors.

Blockchain: A system in which a record of transactions made in cryptocurrency are maintained across several computers that are linked in a peer-to-peer network. Transaction information is placed on a verified block and once filled or completed is added to the chain/ledger.

  • Blockchain technology serves as the security and banking platform for most crypto currencies 
  • It maintains transactions or assets on the ledger. Which can be done two ways using proof of work or proof of stake technology to help verify transactions.
  • Proof of Work: are secured and verified by virtual miners around the world racing to be the first to solve a math puzzle. The winner gets to update the blockchain with the latest verified transactions and is rewarded by the network with a predetermined amount of crypto. 
  • Proof of Stake: In a proof of stake system, staking serves a similar function to proof of work’s mining, in that it’s the process by which a network participant gets selected to add the latest batch of transactions to the blockchain and earn some crypto in exchange. 
  • This technology can be used to verify ownership of anything. Property, crypto, music, movies, cars, card collections, NFTs etc. This would be done by using the blockchain to create private condition based contracts.
  • Smart Contract: is a self-executing contract with the terms of the agreement between buyer and seller being directly written into lines of code. The code and the agreements contained therein exist across a distributed, decentralized blockchain network. The code controls the execution, and transactions are trackable and irreversible.
  • Minting: A common term used when creating the final version of a NFT.
  • Goal: Understand the core components of crypto currency and be able to identify which type of crypto asset you are investing in. Find coins that are involved in industries you are naturally interested in or perform functions you feel will have long term application.


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