Crypto 101

We often get asked where to start learning about crypto. These are podcasts, articles, and presentations that have been helpful. We would love suggestions to add to our list as well.


 

TERMS

Blockchain - A decentralized immutable ledger that is secured through cryptography and maintained by miners 

Bitcoin - The first cryptocurrency created by Satoshi Nakamoto in 2008. 

Ethereum - Created in 2015 is the 2nd largest cryptocurrency by market cap. It's differentiator is a higher level programming language called solidity to develop applications called smart contracts

Cryptocurrency - a form of digital value that is used to motivate miners to validate transaction in the blockchain. Value increases with adoption, perceived value, and speculation. Each individual currency represents a distinct blockchain.

Mining - The process of creating a digital currency. The process includes: 1. verifying transactions within the blockchain   2. bundle transactions in a block 3. link one block of data to the next block by way of a hash 4. solve the Proof of Work problem 5. add the block to the local blockchain. Once verified, 25 bitcoins is then added to the miners account

Immutable - cannot be altered or changed

Ledger - Record of transactions

Proof of Work - A Process to verify a transaction is valid, which is critical to mining. A valid transaction is one in which the value has not been previously spent.

Token - a coin that resembles stake in an application built on top of a blockchain. Most easily compared to stock of a company. Used in ICOs to raise money for a new venture.

Smart Contracts - Applications with a state stored in the blockchain. They can facilitate, verify, or enforce the negotiation or performance of a contract, or that make a contractual clause unnecessary. Smart contracts have been made possible on the ethereum platform. This has made Ethereum a competitor to BItcoin. This technology is what financial institutions are currently evaluating that could bring cryptocurrencies into the Enterprise.