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What is Cryptocurrency?

A cryptocurrency, crypto currency or crypto is a digital asset designed to work as a medium of exchange wherein individual coin ownership records are stored in a ledger existing in a form of computerized database using strong cryptography to secure transaction records, to control the creation of additional coins, and to verify the transfer of coin ownership. [1]

Blockchain

A blockchain, originally block chain, is a growing list of records, called blocks, that are linked using cryptography. Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data. [2]

Mining

Cryptocurrency mining, or cryptomining, is a process in which transactions for various forms of cryptocurrency are verified and added to the blockchain digital ledger. Also known as cryptocoin mining or ‘mining’ in general. [3]

Wallets

A wallet is a device, a program or a service which stores the public and/or private keys for cryptocurrency transactions.  A cryptocurrency wallet more often also offers the functionality of encrypting and/or signing information. [4]

How Blockchain Works

A blockchain, originally block chain, is a growing list of records, called blocks, that are linked using cryptography. Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data. By design, a blockchain is resistant to modification of its data. This is because once recorded, the data in any given block cannot be altered retroactively without alteration of all subsequent blocks. For use as a distributed ledger, a blockchain is typically managed by a peer-to-peer network collectively adhering to a protocol for inter-node communication and validating new blocks. Although blockchain records are not unalterable, blockchains may be considered secure by design and exemplify a distributed computing system with high Byzantine fault tolerance. The blockchain has been described as “an open, distributed ledger that can record transactions between two parties efficiently and in a verifiable and permanent way”. [5]

Mining explained

Crypto mining is the process of verifying transactions and adding them to the blockchain, minting new units of cryptocurrency such as bitcoin in the process. This is an exceptionally competitive procedure – especially with virtual currencies like bitcoin, which have a finite supply. Several methods are used for crypto mining, but a common approach known as Proof of Work involves miners going head to head to complete complex mathematical equations in the quickest time possible – enabling them to receive a reward in exchange. [6]

Crypto explained by Izaac Peeters

Wallets explained

A cryptocurrency wallet is a device, physical medium, program or a service which stores the public and/or private keys for cryptocurrency transactions. In addition to this basic function of storing the keys, a cryptocurrency wallet more often also offers the functionality of encrypting and/or signing information. Signing can for example result in executing a smart contract, a cryptocurrency transaction (see “bitcoin transaction” image), identification or legally signing a ‘document’. [7]

Why Invest in Crypto?

There’s no doubt about it — crypto is making big waves. You’ve probably been hearing more and more about it on the news, and heard people talking about it more. But there are those who’ve been just reading the headlines and discussing it — while others are busy getting to work on becoming part of this revolution — and grabbing the huge opportunities. [8]

Fast and Global

Traditional payment systems particularly struggle with international transactions. Whereas blockchain-based networks, being decentralized and not tied up to any particular country, process money transfers from any corner of the world in a matter of minutes. [9]

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Irreversible

The biggest problems that arose was the double spending. This is a type of attack where people could use and spend the same amount of money on more than one occasion. This is why irreversible transcation were introduced. [10]

Secured

A blockchain is a series of blocks that records data in hash functions with timestamps so that the data cannot be changed or tampered with. As data cannot be overwritten, data manipulation is extremely impractical. [11]

Crypto Wallet

When you open a cryptocurrency wallet, you create an ID in the blockchain. Your account contains a private and a public key — they are like your cryptocurrency credentials. Here is the neat thing: your account is not connected to your real-life ID. [12]