Cryptolingo - Revision history

Mediawiki: /* Digital Cash: */

2024-10-09T15:53:16Z

Digital Cash:

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	Cryptocurrency behaves like digital cash. You transfer from one person to another privately and anonymously, and there is no need of a trusted third party to approve or verify the transaction.		Cryptocurrency behaves like digital cash. You transfer from one person to another privately and anonymously, and there is no need of a trusted third party to approve or verify the transaction.

	The main feature of the Cryptocurrency technology is to eliminate the need of trusting a third party to make the transaction.		The main feature of the Cryptocurrency technology is to eliminate the need of trusting a third party to make the transaction. This is an unprecedented technical achievement, this is what makes cryptocurrency one of the most important technological advancements in history.

	This is an unprecedented technical achievement, this is what makes cryptocurrency one of the most important technological advancements in history.

	One important consequence of this is that you are the only one responsible for your cryptos, if you lose them, there is no way to recover them. Nobody knows that you had them in the first place so you can’t complain or ask for help. This is the most important thing to keep in mind, we will get back to this later on.		One important consequence of this is that you are the only one responsible for your cryptos, if you lose them, there is no way to recover them. Nobody knows that you had them in the first place so you can’t complain or ask for help. This is the most important thing to keep in mind, we will get back to this later on.

Mediawiki: /* Cryptocurrency Vs Digital Money. Similarities and differences. */

2024-10-09T15:50:46Z

Cryptocurrency Vs Digital Money. Similarities and differences.

← Older revision		Revision as of 17:50, 9 October 2024
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	The normal money used by countries is called FIAT, this is the Latin for: “let it be done”. And it is called this way because this money is backed up by laws and regulations only.		The normal money used by countries is called FIAT, this is the Latin for: “let it be done”. And it is called this way because this money is backed up by laws and regulations only. This is the money we “have” in banks and gets transferred from one account to another using credit or debit cards, or via bank transfers.

			Fiat can be created at will by central banks, and this is the cause of '''INFLATION'''. Bitcoin on the other hand has a limited supply of 21 Million BTC, and it requires energy and computing power to create it. So it has a real cost of production.

	Fiat can be created at will by central banks, and this is the cause of '''INFLATION'''. Bitcoin on the other hand has a limited supply of 21 Million BTC, and it requires energy and computing power to create it.So it has a real cost of production.

	~~Fiat is the money we “have” in banks and gets transferred from one account to another using credit or debit cards, or via bank transfers.~~

Mediawiki: /* What is Crypto? */

2024-10-09T15:43:25Z

What is Crypto?

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	* The cryptos live on the blockchain and never leave. And there are copies of the blockchain on all the network nodes.		* The cryptos live on the blockchain and never leave. And there are copies of the blockchain on all the network nodes.

			* The network nodes receive transactions and group them in blocks, forming a chain of time-stamped blocks. Hence the name

	* The network nodes are continuously checking the integrity of the block chain database.This costs energy, equipment and maintenance.		* The network nodes are continuously checking the integrity of the block chain database.This costs energy, equipment and maintenance.

Mediawiki: /* What is Crypto? */

2024-10-09T15:19:42Z

What is Crypto?

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	how easy is to buy and sell it, etc.		how easy is to buy and sell it, etc.

	* When you buy a cryptocurrency you are investing on this computer network. You never have cryptocurrencies on your possession.		* When you buy a cryptocurrency you are investing on this computer network.
	All you have are the private keys to transfer the property of the digital assets you own.
			* You never have cryptocurrencies on your possession. All you have are the private keys to transfer the property of the digital assets you own.

	* The cryptos live on the blockchain and never leave. And there are copies of the blockchain on all the network nodes.		* The cryptos live on the blockchain and never leave. And there are copies of the blockchain on all the network nodes.

Mediawiki: /* What is Crypto? */

2024-10-09T15:18:35Z

What is Crypto?

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	The price of the cryptocurrency is related to the size of the network, how secure it is, how widespread is around the world,		* The price of the cryptocurrency is related to the size of the network, how secure it is, how widespread is around the world,
	how easy is to buy and sell it, etc.		how easy is to buy and sell it, etc.

	When you buy a cryptocurrency you are investing on this computer network. You never have cryptocurrencies on your possession.		* When you buy a cryptocurrency you are investing on this computer network. You never have cryptocurrencies on your possession.
	All you have are the private keys to transfer the property of the digital assets you own.		All you have are the private keys to transfer the property of the digital assets you own.

	The cryptos live on the blockchain and never leave. And there are copies of the blockchain on all the network nodes.		* The cryptos live on the blockchain and never leave. And there are copies of the blockchain on all the network nodes.

	The network nodes are continuously checking the integrity of the block chain database.This costs energy, equipment and maintenance.		* The network nodes are continuously checking the integrity of the block chain database.This costs energy, equipment and maintenance.
	The network nodes are rewarded with crypto for this task. And this is the way cryptocurrency appears in the world. First the network nodes receive it
			* The network nodes are rewarded with crypto for this task. And this is the way cryptocurrency appears in the world. First the network nodes receive it
	for their work securing the database and processing transactions, and then they sell it to the public.		for their work securing the database and processing transactions, and then they sell it to the public.

	When an error, or a fraudulent transaction is included in one of the blockchains of the network, it ~~is rejected by~~ the ~~other nodes~~.		* The only fraud you can do in cryptocurrency is to double spend the crypto. This means a user will pay with crypto, and before the payment is processed by
	~~The network agrees~~ to ~~take as~~ the ~~valid blockchain the one that~~ the ~~majority~~ of the ~~nodes agree upon~~.		the network the user will spend the same crypto again.

			* The network agrees to take as the valid blockchain the one that the majority of the nodes agree upon. Nodes agree by adding new blocks to the chain.

			* When an error, or a fraudulent transaction is included in one of the blockchains of the network, the nodes keep a copy of it, in case it becomes the longest chain.
			And they will reject it if another chain becomes longer.

			* If somebody wants to make fraud, they have to be in control of the majority of network nodes. And have more computing power than the rest of the network combined.

	~~If somebody wants to make fraud, they have to be in control of the majority of network nodes. And have more computing power than the rest of the network combined.~~

	~~The only fraud you can do in cryptocurrency is to double spend the crypto. This means a user will pay with crypto, and before the payment is processed by~~
	~~the network the user will spend the same crypto again.~~

	Therefore it is unprofitable to make fraud. If anybody has the majority of the nodes of the network, they can make more money by keeping the network safe.		Therefore it is unprofitable to make fraud. If anybody has the majority of the nodes of the network, they can make more money by keeping the network safe.

Mediawiki: /* What is Crypto? */

2024-10-09T15:10:23Z

What is Crypto?

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	A Cryptocurrency has three inseparable elements:		A Cryptocurrency has three inseparable elements:


	# A Digital Asset whose property can be transferred from one person to another.		# A Digital Asset whose property can be transferred from one person to another.
	# A public record of all transactions of the digital asset, called block-chain.		# A public record of all transactions of the digital asset, called block-chain.
	# A peer to peer, decentralized computer network which validates and process transactions.		# A peer to peer, decentralized computer network which validates and process transactions.


	The price of the cryptocurrency is related to the size of the network, how secure it is, how widespread is around the world,		The price of the cryptocurrency is related to the size of the network, how secure it is, how widespread is around the world,

Mediawiki: /* What is Crypto? */

2024-10-09T15:10:06Z

What is Crypto?

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	==What is Crypto?==		==What is Crypto?==

	~~Essentially~~, ~~a cryptocurrency is a~~ decentralized computer network ~~that keeps a public database called a block chain~~.		A Cryptocurrency has three inseparable elements:

			# A Digital Asset whose property can be transferred from one person to another.
			# A public record of all transactions of the digital asset, called block-chain.
			# A peer to peer, decentralized computer network which validates and process transactions.

	The price of the cryptocurrency is related to the size of the network, how secure it is, how widespread is around the world,		The price of the cryptocurrency is related to the size of the network, how secure it is, how widespread is around the world,

Mediawiki: /* Crypto-Currency: */

2024-10-04T23:48:03Z

Crypto-Currency:

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	==Crypto-Currency:==		==Crypto-Currency:==

	Cryptocurrency is a DIGITAL ASSET that can be used like money. The fundamental element of this technology is '''CRYPTOGRAPHY''', and hence the name Crypto-Currency. Being a digital asset means it is something you can own.		Cryptocurrency is a '''DIGITAL ASSET''' that can be used like money. The fundamental element of this technology is '''CRYPTOGRAPHY''', and hence the name Crypto-Currency. Being a digital asset means it is something you can own.

	===Transactions:===		===Transactions:===
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	because the bank system has to process the transactions. Validate, approve and execute them.		because the bank system has to process the transactions. Validate, approve and execute them.

	The Bank acts like a TRUSTED THIRD PARTY in the transaction.		The Bank acts like a '''TRUSTED THIRD PARTY''' in the transaction.

Mediawiki: /* Cryptocurrency Vs Digital Money. Similarities and differences. */

2024-10-04T23:46:49Z

Cryptocurrency Vs Digital Money. Similarities and differences.

← Older revision		Revision as of 01:46, 5 October 2024
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	==Cryptocurrency Vs Digital Money. Similarities and differences.==		==Cryptocurrency Vs Digital Money. Similarities and differences.==

	Before we start let’s make clear that most of the money used nowadays is digital money. Only ~~few~~ percent of the total supply of money exists in physical form.		Before we start let’s make clear that most of the money used nowadays is digital money. Only about 8 to 10 percent of the total supply of money exists in physical form.


	The normal money used by countries is called FIAT, this is the ~~latin~~ for: “let it be done”. And it is called this way because this money is backed up by laws and regulations only.		The normal money used by countries is called FIAT, this is the Latin for: “let it be done”. And it is called this way because this money is backed up by laws and regulations only.

	Fiat can be created at will by central banks, and this is the cause of '''INFLATION'''. Bitcoin on the other hand has a limited supply of 21 Million BTC, and it requires energy and computing power to create it.So it has a real cost of production.		Fiat can be created at will by central banks, and this is the cause of '''INFLATION'''. Bitcoin on the other hand has a limited supply of 21 Million BTC, and it requires energy and computing power to create it.So it has a real cost of production.

Mediawiki: /* Cryptocurrency Vs Digital Money. Similarities and differences. */

2024-10-04T23:09:01Z

Cryptocurrency Vs Digital Money. Similarities and differences.

← Older revision		Revision as of 01:09, 5 October 2024
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	Before we start let’s make clear that most of the money used nowadays is digital money. Only few percent of the total supply of money exists in physical form.		Before we start let’s make clear that most of the money used nowadays is digital money. Only few percent of the total supply of money exists in physical form.


	The normal money used by countries is called FIAT, this is the latin for: “let it be done”. And it is called this way because this money is backed up by laws and regulations only.		The normal money used by countries is called FIAT, this is the latin for: “let it be done”. And it is called this way because this money is backed up by laws and regulations only.

	Fiat can be created at will by central banks, and this is the cause of '''INFLATION'''. Bitcoin on the other hand has a limited supply of 21 Million BTC, and it requires energy and computing power to create it.		Fiat can be created at will by central banks, and this is the cause of '''INFLATION'''. Bitcoin on the other hand has a limited supply of 21 Million BTC, and it requires energy and computing power to create it.So it has a real cost of production.

	Fiat is the money we “have” in banks and gets transferred from one account to another using credit or debit cards, or via bank transfers.		Fiat is the money we “have” in banks and gets transferred from one account to another using credit or debit cards, or via bank transfers.



	We mention there are thousands of cryptos, but they fall in two basic types: Bitcoin-like and Ethereum-like.		We mention there are thousands of cryptos, but they fall in two basic types: Bitcoin-like and Ethereum-like.

	~~Therefore,~~ to ~~simplify more when we say cryptocurrency, think Bitcoin~~ as ~~the fundamental example~~.		* Bitcoin was designed to be like money (digital cash).

			* Ethereum was designed as a decentralized virtual computer.

	~~Bitcoin was designed~~ to ~~be like money~~. It is ~~a digital asset that has a real cost of production. It behaves like a commodity~~ and ~~it takes energy and computing power to create it~~.		The Ethereum network can run programs called "smart contracts" that execute when somebody pays the fee to run them, and the conditions established in the code are fulfilled.
			Ether is the cryptocurrency used as economic incentive for network nodes to process, validate transactions, and run smart contracts.

	~~Ethereum was designed as a decentralized virtual computer. (We will talk about Ethereum on section XY)~~

	There are other cryptocurrencies that can be created out of thin air like fiat, but we are not going to talk about those in these series of talks. And strongly advise you to stay away from them.		There are other cryptocurrencies that can be created out of thin air like fiat, but we are not going to talk about those in these series of talks. And strongly advise you to stay away from them.

			Therefore, to simplify more when we say cryptocurrency, think Bitcoin as the fundamental example.