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Author Topic: Cryptocurrency Basics  (Read 870 times)

deadshot747

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Cryptocurrency Basics
« on: October 27, 2017, 02:18:23 AM »
What is cryptocurrency?
Cryptocurrency is a digital currency for which encryption techniques are used to regulate its use and generate its release. Unlike fiat currency — like US dollars, euros and yen — cryptocurrency is not regulated or controlled by any bank, government or centralized financial authorities.

Instead, it relies on the power of the Internet to guarantee its value and confirm transactions. Users on a network verify every transaction, and those transactions then become a matter of public record. This prevents the same digital currency or coin from being spent twice by the same person.

How are cryptocurrency records kept?
That digital public ledger on which all transactions are recorded is called the blockchain. Data is stored across a network, so it’s not susceptible to exploitation by hackers or central failure.

Each record or series of records on the blockchain is known as a block. A block is sent to the network and added to the blockchain after it’s accepted by the network as a valid transfer. Once verified, the blocks cannot be changed.

What does it mean to mine cryptocurrency?
Cryptocurrencies are released to the world through a process called “mining.” For you to mine this currency, you must attempt to solve a computational puzzle known as a hash, which allows you to add the next block. These transactions are then recorded in the blockchain for all to see.

People around the world compete to be the first to solve a hash. Those “miners” who succeed in solving the hash receive a block reward — or an amount of the cryptocurrency they mined.

WHAT EQUIPMENT DO I NEED TO BEGIN MINING CRYPTOCURRENCY?
Unlike mining for gold, you’ll need a few more tools than a pan and a magnifying glass. Invest in these basics to get started:

Mining hardware. You’ll need a ASIC chip for your computer designed specifically to mine cryptocurrency.
Mining software. Look for free software with easy-to-follow instructions that explain how these programs work with your ASIC.
Bitcoin wallet. If you complete a block, you’ll need to store your bitcoin in a wallet.

How can I buy and use cryptocurrency?

Cryptocurrency is a volatile market, with exchange rates that can wildly fluctuate by day, and sometimes by hour. Bitcoin is the better-known and most valuable cryptocurrency out there, but there are many others to explore, including litecoin, peercoin, dogecoin, monero and ripple.

When you buy or receive cryptocurrency, you are given a digital key to the address of that currency. You can use this key to access and validate or approve transactions.

You need a place to keep your key safe, which is where a cryptocurrency wallet comes in.

You have a variety of cryptocurrency wallets to choose from:

Desktop wallets. Software like Cryptonator allows you to send and store cryptocurrency addresses and also connects to the network to track transactions.
Online wallets. Cryptocurrency keys are stored online by exchange platforms like Coinbase or Circle and can be accessed from anywhere.
Mobile wallets. Apps like Blockchain store and encrypt your bitcoin keys so that you can make payments using your mobile device.
Paper wallets. Some websites offer paper wallet services, generating a piece of paper with two QR codes on it. One code is the public address at which you receive cryptocurrency, and the other is your private address you can use for spending.
Hardware wallets. You can use a USB device created specifically to store bitcoin electronically and your private address keys.
« Last Edit: October 27, 2017, 02:20:26 AM by deadshot747 »

valterisap

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Re: Cryptocurrency Basics
« Reply #1 on: November 13, 2017, 12:49:00 AM »
this is a excellent infomation, i didn't figure there's a special chip for. amazing