Learner's Guide 101: Blockchain and Crypto - What is Crypto? || 18-02-2022

Hey guys, believe me or not, Blockchain and crypto are quickly becoming the focus of the day. There is a growing interest in Blockchain technology and Crypto trading. And as such many beginners need guidance.

Are you a crypto trader or lover who is frustrated, not knowing what to do? Cheer up, God has answered your prayers already. In today's lesson, our focus will be to enlighten you on what crypto is. And as we continue, I will delve deeper into the topic of Blockchain technology and Crypto trading as you gain knowledge and technique in the subject matter.

WHAT IS CRYPTOCURRENCY?

A cryptocurrency is a digital asset whose main function is to serve as a medium of exchange value within a P2P economic system that uses cryptography to verify and secure transactions and to control the creation of a unit of remittance. Unlike centralized banking systems, most cryptocurencies are decentralized by distributing a network of computers distributed around the world, also known as nodes. Anyone with internet or radio access can trade valuables across continents with a click of a button.

The cost for cryptocurrency transactions are low compared to intercontinental bank transfers. And the transactions are irreversible unlike in bank transactions permitted by credit card companies.

The issuance and management of cryptocurrency units are determined by the network architecture which is based on program algorithm and cryptographic proofs. This can be considered as a predefined set of rules known as protocol that defines how the cryptocurrency system operates. Being discentralized also means that the cryptocurencies can not be controlled by a single entity and transactions may occur directly between users without necessarily passing through intermediaries third party.

However, many cryptocurencies are managed and developed by private companies and foundations. Depending on structure and distribution, some cryptocurencies can be considered more discentralized than others. The core component for most cryptocurencies is a technology called Blockchain.

WHAT IS A BLOCKCHAIN?

A Blockchain consist of a linear chain of multiple linked blocks that are cryptographically secured. Each block contains among other things a list of recent transactions and are reference to the block that came immediately before it.

Blockchain is responsible for keeping a permanent record of all conference transactions working as a decentralized digital ledger. This ledger is distributed across all the nodes in the network making it highly resistant to modifications. Bitcoin is the first decentralized cryptocurrency.

WHAT IS BITCOIN

Bitcoin was created in 2009 by an unknown developer Satoshi Nakamoto.¹ The main idea was to create an independent decentralized electronic payment system based on mathematical proof and cryptography. As most cryptocurencies, Bitcoin has limited supply which means that as more Bitcoin will be generated by the system after the maximum supply reach. Usually, the tool supply a public information that is define when the Bitcoin is created. Among Bitcoin, today there are thousands of different cryptocurencies to also called Altcoins or Alternative coins all with different properties and used cases.

NOTE
THIS IS NOT TAKING THE PLACE OF STEEMIT CRYPTO ACADEMY, AND NOT A LESSON ON TRADING. THIS IS JUST TO ENHANCE UNDERSTANDING.