Description
You can now interact in the dinner conversations of cryptocurrency blockchain tech with simple concepts. Know the basic terminologies of cryptocurrencies with simpler real-life examples!
When the technical terms of cryptocurrency tapped my ears, I was amused that it's just a type of fiat paper currency. But, as days passed by it was mandated to know the kinds of stuff for the technical community.
I was excited about the jargons of cryptocurrency, blockchain technology, smart contract and other features which are brought in to the digital world with the innovation of cryptocurrency. What is this invisible, volatile cryptocurrency all about? Are you still in a chaotic mind about this geekspeak?
Let’s break down the technical phrases of cryptocurrency and know much more about the creation process of crypto coins!
Cryptocurrency Tops!
Cryptocurrency is the digital, invisible, volatile currency that is cryptographically secure and records, verifies the transactions in the blockchain network. The first-ever cryptocurrency is Bitcoin and tops the market value still now. A single BTC costs around $10k and it experiences low volatility which is an energy booster for crypto investors.
Despite the controversial debates of cryptocurrency concepts, it has reached the pinnacle of success and many giant industries like Amazon, Shopify, Microsoft, Cupid and much more have incorporated crypto payments for their products & services. Now let’s explore the underlying mystery of cryptocurrency, the blockchain!
Blockchain is the distributed ledger technology which is similar to the land ownership transfer ledgers available in the government sectors. Blockchain is a public ledger of cryptographically secure transactions at which the data is recorded in chronological order and are immutable.
Every data block in the blockchain comprises of hash, pre-hash, nounce and data values. If the hacker has to counterfeit the particular block, then he/she must break down the hash value of the particular block and pre-hash values of the previous blocks linked to the data block, which is impossible without the consent of community people.
A smart contract is the piece of code which is self-executing and the transaction happens once the specified condition is satisfied. To avoid scams and fraudulent chargebacks, smart contracts can be implemented in the sectors.
Crypto mining is the rewarding process of verifying the transaction in the blockchain network by solving complex mathematical problems by the miners. The miners are rewarded with some amount of cryptocurrencies as a proof-of-work for solving the mathematical problems. Mining is the only process by which cryptocurrencies are obtained rather than purchasing it with lumps of money!
Nodes are computers connected to the blockchain network. Nodes that verify cryptocurrency transactions in the blockchain network are termed as miners. Multiple nodes must approve and verify the particular transaction to add into the data block of network.
Private keys are similar to our email or mobile password that provide access to the cryptocurrency wallet. Every cryptocurrency owner must ensure their own private keys security as it’s the trump card to access their wallets.
Cryptocurrency wallets have been upgraded to multi-cryptocurrency wallets, hence highly valued distinct types of crypto coins would be secured with your private keys. Beware, clutch your private keys!
Every cryptocurrency owner would own a private and public key to access their cryptocurrencies. In order to receive cryptocurrency from a person, the crypto owner must ask them to transfer the crypto asset to the particular public key.
A public key is similar to our email id or profile name to which the people can share cryptocurrencies. The public key is an alphanumeric address.
Let’s bang with the jargons of cryptocurrency! Now, you can be the recipient of quick bullet features of blockchain and cryptocurrency!
- Cryptographically secure
- P2P transactions
- No central authorities and time lapse
- Ignorable intermediary fees
- Decentralization
Cryptocurrencies are mined as mentioned rather than printing or innovating. None of the cryptocurrencies can be newly created! You can either mine or purchase the cryptocurrency.
Miners receive the proof-of-work rewards and establish the cryptocurrencies for trading. New types of crypto coins are created with the help of Bitcoin forking. Forking is the process of duplicating and adding features to the existing Github Bitcoin open-source code.
Many start-ups trying to launch their own cryptocurrency in the market launch their ICO tokens to be spent for futuristic trades and to raise capital funds for the development phase. In general, ICO’s are traded in return of popular cryptocurrencies like BTC, LTC, XRP or fiat currencies.
Yes! Of course, there are distinct types of cryptocurrencies available in the crypto world! Now let’s glimpse through the top cryptocurrencies which are of high value!
Around 2900 coins have been listed in 2019 in the coinmarketcap! However, popular crypto coins of the decade are only 3!
Bitcoin(BTC)
Ethereum(ETH)
Ethereum heads up towards the second popular cryptocurrency. The value of an Ethereum token tap around $200 USD. Ethereum has reached a huge supply of 107,899,675 ETH in recent years.
Ripple(XRP)
XRP loads up two other cryptocurrencies and stands as the third popular one. The market value of XRP is lower when compared to other cryptocurrencies that reach around $0.25 USD and the total circulation is around 43,080,011,224 XRP.
By now you’re cloyed with the dialects of cryptocurrencies! I’m sure that you can now groove the cryptocurrency jargons in your dine conversations!
Still having queries or chaos in cryptocurrency terminologies? Drop us a stain in the comments page below! We will vanish your chaos in the upcoming blogs!
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