As we promised we Crptocurrency Academy wish to deliver the most reliable
information to our members in the simplest type of way so that it is easy for you
to understand. A lot of queries were raised by our members since they did not
understand what it is we were realy talking about. So we are going to take you
through the Basics, Airdrops, Icos, CryptoMining, CryptoTrading and
decentralized apps.We will be covering the following topics via online webinars
via the zoom application, if there are any changes we will communicate.
Mentors on board.
∙ Mr. Brian Adams
∙ Mr. Samuel Kibocha
∙ Miss Dorty Mukiri
∙ Mr. Shawn Ayako
Cryptocurrency basics
What are cryptocurrencies???
From the term cryptogaphy comes the name crypto in Greek
"Kruptos"which means hidden.
Currency -A system of money, legal tender ,cash ,digital asset
that is generally accepted in use as a medium of exchange or a store
of value.
The two terms combined bring forth the term crypto currency,which in simple
term is a digital or virtual currency that uses cryptography encryption techniques
to secure and regulate the generation of units and regulate the transfer of funds
operating independently of a central bank.
The very first invention of a cryptocurrency was BITCOIN a well known coin
that has been hitting adoption which lead to the rise of its value over time ,from
$0.06 2009 to $16000 2017. Bitcoin was invented by an anonymous figure
Satoshi Nokamoto whose main aim was to disrupt the financial sector in the
world, to be honest this objective was a succes since the underlying technology he
invented Blockchain, a public ledger on the internet has changed the world a lot.
The invention of blockchain brought about the invention and innovation of other
currencies with added special features such as Etherium with the (smart contect
feature). Etherium (Erc20 wallet) supports all tokens and you can send and
receive all tokens from this specific wallet. Best examples
∙ MyEtherWallet (MEW)
∙ Metamask google plug in.
To View All Existing Coins That have been listed on exchanges you can use Coinmarketcap or Coingecko
Characteristics of Cryptocurrencies.
Cryptocurrencies have a set of traits that make them unique and by rule of thumb
many people prefer using them. we are going to go through the different traits
which are crucial to look at before investing or buying any cryptocurrency.
1 Decentralized
**
by decentralised we mean that there is no center of
control, in other words nobody controls how they operate. Blockchain
itself is decentralised meaning that there is no focal point of control.This is
one of the main reasons most governments are not happy about this new
arising technology since they have not discovered away to regulate it. Not
all coins are decentralized, example Dash.
2 Anonymous
To start with an example if Bellah in china wishes to send
Samuel in germany some crypto coins which have monetary value or send
some private information inform of a message she will delightly do it
without necessarily requiring to fill or diclose her identity for the
transaction to take place no unless sje opts to disclose her credentials on
the Memo/Tag/Message center. Once the transaction has been confirmed
it will be registered on the blockchain / public ledger. To trace your
transactions status you will have to use the specific block explorer of the
specific coin.Example Ethereum transaction can be tracked on Ethscan
Explorer. On the block explore you can either use the transaction hash or
the wallet address which you feed on the search part of the explorers page.
After the search the transaction status will be shown either confirmed if
the transaction has been completed or the number of minutes remaining
for the transaction to be completed. The transactors wallet addresses will
be shown and the number of coins sent over will also be revealed not
forgeting the time and date. Ethereum block explorer shows the gas that
was set to steer the transaction to go though, the more the Gas the faster
your transaction becomes. All coins are maintain anonymity.
3 Blockchain
You must have read the term blockchain above or from our
other articles a couple of times. So what is this blockchain, it is a digital
public ledger where digital transactions are recorded. Blockchain
continuously grows as more information is recorded in blocks which are
linked and secured using cryptographical coding. Each block contains a
hash of the previous block, a timestamp and transaction data. Blockchain
is inherently resistant to any data modification of the already recorded
data. Bockchain can be used to record , Bank Data example ripple, medical
data i.e patientory. All cryptocurrencies must have a running blockchain.
4 Peer to peer
Blockchain allows for transfer of data or cryptourrencies
from one person to another from anywhere to anyone in the world for as
long the subjects access to their crypto wallet and the internet. i.e
John's (Wallet) ------------> Blockchain ----------------> Bellah's(Wallet)
John sends 100 counterparty(xcp) to Bellah. Bellah has to provide John with her
xcp wallet address ( a long code of numbers and digits) where John will feed the
provided wallet address on the send option in His wallet. Some wallets require
the recipients memo or tag especially if you are dealing with an exchange. If a
memo is required Bellah should send it along with the wallet address to john and
differentiate the two to avoid any confusion.
The peer to peer network has proven to be an efficient way of sending cash since
it takes a shorter period of time and has very low transaction fees.
N/B Every coin has its own wallet and its wallet address, never send a
coin to another coins wallet address if you do this then your coins will
be lost for good. An erc20 wallet can be used to send other coins to.
Wallet - A digital wallet in the traditional form puse where and individual stores
his or her cryptocurrencies. Inside the wallet there is the wallet address, send and
receive option, set of public and private keys (never to be disclosed to anyone and
always to be saved as backup incase of one loosing his or her wallet). Remember
each and every coin has it own wallet and its own wallet address. Most of the
downloaded versions of wallets have to be synced to the blockchain before use.
5 Algorithm-
E
Each and every coin must use an algorithm equation to function. the
algorithms are categorised with different proof types i.e Proof of work for
ethereum which uses Ethash algorithm to function another example is Zcash
which uses the Equihash as an algorithm, which is an asymmetric memory-hard
Proof of Work algorithm based on the generalized birthday problem. It relies on
high RAM requirements to bottleneck the generation of proofs and making ASIC
development unfeasible.
COIN ALGORITHM; PROOF TYPE
Bitcoin (BTC) Bitcoin (BTC) SHA256; PoW
Ethereum (ETH) Ethereum (ETH) Ethash; PoW
Litecoin (LTC) Litecoin (LTC) Scrypt; PoW
DigitalCash (DASH) DigitalCash (DASH) X11; PoW/PoS
Monero (XMR) Monero (XMR) CryptoNight; PoW
Nxt (NXT) Nxt (NXT) PoS; PoS/LPoS
Ethereum Classic (ETC) Ethash; PoW
Dogecoin (DOGE) Dogecoin (DOGE) Scrypt; PoW
ZCash (ZEC) ZCash (ZEC) Equihash; PoW
Bitshares (BTS) SHA-512; PoS
6 Community :
individuals who are interested with an organisations roadmap
and have invested in the coin, the community also includes the development
team which sees to it that everything runs smoothly. Before investing in any coin
you should do your due deligence by checking their social media forums such as
reddit, bitcointalk.org , twitter page, telegram group and channels, discord , slack
etc.
The above work and information provided is a product of CryptoCurrency
Academy and is designated for our members learning.It should be used as a
guide and a point of reference in the cryptocurrency world. We are in no way
interested with giving any financial advice to our members. Please note that the
cryptoworld can be risky so always do your research before making any rush
decisions.
Thank You For Your Time.
Check Out Our Other articles.
- Cryptocurrency Trading Rules And Strategies For Beginners
- Importance of CRYPTO DIVERSIFICATION
- CRYPTO TRADING SIMPLE RULES
- CryptoCurrency Basics
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