You are viewing a single comment's thread from:
RE: CryptoBridge a DECENTRALIZED CRYPTOCURRENCY EXCHANGE for the Altcoin Market Review of use with SimplePOSpool
Hi @stever82, I found this post in SGG discord and I am glad to drop by.
I have been wanting to understand what is cryptocurrency after I have joined Steemit.
There are so many coins around and make me confused. Everycoint claim they are the best.
So, my question is where do we start to learn cryptocurrency?
I hope you can shade some light
Cheers
Yes this can get confusing with so many different coins out there. The main ideas behind the is they are either meant to be a form of payment or a token that is used on the blockchain to access features or as payments just to that coin/company. All the the coins meant to be used as a form of payment are really just a ledger that keeps track of who has what just like a bank would. They difference are in the features and how they form a consensus on who has the correct ledger. POW or proof of work coins mine blocks by solving the SHA256 algorithm which is hard and reason bitcoin can be a bit slow. Also is what leads to the powerful mining computers running all over the world. While this way works great to make sure your blockcain is correct it takes up a lot of computing power and takes faster and faster computers to speed up transactions. They other form is POS or Proof of stake. In this form you have to buy a set amount of the coins and keep them in your wallet then set up a dedicated server to add to their network of servers. For doing this you are paid a reward as now your computer becomes the network keeping track of ledger. These tend to be much faster and can scale better. Coins start out on 2 core CPU and with 8 gb of ram running in simple linux and can still handle a lot of transactions. Then you can just make the computers better when needed. These are coins like Dash, Bitcoin Green, PIVX, and many others like the ones I go over in my other post. Then there is the features to break them all down I can't even do cause there are so many. Mostly though the features either focus on privacy or speed. So Bitcoin cash made bigger block sizes to speeds things up. XMR/Monero is the first major coin to hide who you are in transactions. Tokens like ETH, EOS, TRON, NEO, ect all run platform blockchains that aim to allow others to build apps on top of their blockchain. That will run really fast and have the power of the blockcain ledger behind them. Ethereum proved this can work but has issues scaling up which has lead to all the new platform coins coming out. Other tokens would be like the Binance token BNB that lets to pay fees on the Binance tradaing platform but they are 50% lower that if you pay them with any other coins. Or ones like FLOT for firelotto that really just let you buy a stake in the company almost like a old fashion stock. I will try to more post breaking this down a little further. Just as a note they are some coins that are both POS and POW also. This is one of the things that makes keeping up with cyptocurrenices so hard. There are 1000s of coins at this point each trying to be the next big coin.
thanks for the long explanation. I am equally alien to all the jargon used Anyway, it may take a while for me to get used to them
Thanks