Cryptographic coins for Minnows
For many crypto users it's still hard to understand the mechanisms of a cryptocurrency. I'm no expert, I have not even read the entire wikipedia page about cryptocurrency, but I'll try to put some light in a few words. I will try to clarify for them and for me, how it works.
Easy, like a pocket wallet
We are all familiar with a pocket wallet. We put things in it so we know where to find them when we need them. We get to know it's every mini-pocket, as we fill it with banknotes, coins, ID cards, debit/credit cards, etc.
Now we expect a crypto-wallet to be as easy to handle like a pocket wallet. And it's not. It looks more like an energy meter than a wallet. It shows numbers on a device. And that's because currency is current. Money are flowing in society almost like the energy, in the energy grid.
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Crypto-wallet needs an address
For the currency to flow in and out of a crypto-wallet, it needs addresses.
We don't usually use an address to put things in our pocket or to take and give things out of it. Our brain takes care of that, without us even noticing. It easily identifies a place or a person.
Steemit did a good job with the wallet. We only need the name of a person to identify it.
If we want to exchage STEEM for other currency, we need to use cripto-wallets that have encrypted addresses.
Why encrypted?
Now here the things get tricky. The blockchain of STEEM currency is like a train that takes the mail trough 20 stations, but it does not leave it there. It just shows it to the witnesses.
When we send money, we actually send I Owe You notes to our witness. Then the witness reads the content of the IOU note, and writes it on the blockchain.
When we receive money, our witness searches the blockchain, and if it finds a new IOU addressed to us, it copies it and sends it to us.
There are more things that witnesses and clients do in order to maintain this process, including the encryption/decryption of the IOU notes, but I will stop here for now.
I think I made a good description.
Feel free to comment any mistakes.
Cya.
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You have tried to make it simple that's nice, but I am not a tech savy person. I think will get a knack of it with time.
It's not that complicated. It's like assigning numbers or names to our pockets. Pocket number one is for the money that come from work. Pocket nr. two is for the money that dad gave me to buy cat food. And so on...
great work
Thank you!
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