Crypto 101: Get in the know

What is a cryptocurrency?

Cryptocurrency is digital money powered by code and governed by math, not governments. It runs on decentralized networks called blockchains, ensuring that transactions are secure, transparent, and tamper-proof. Think of it as the internet’s currency— its borderless, fast, and built for an online world.

What is blockchain technology, and why is it important?

Blockchain is like a digital notebook shared across thousands of people, where everyone has the same up-to-date copy. When a new entry (or transaction) is made, the group confirms it’s legit before adding it to the notebook permanently. This system eliminates the need for a central authority, making it incredibly secure, transparent, and trustworthy.

What’s the difference between Bitcoin and other crypto’s?

Bitcoin, often called digital gold is the cryptocurrency of the Bitcoin blockchain.
It was built for one purpose: to store value and transfer it securely. The Bitcoin blockchain is validated by a math heavy mechanism called proof of work. This “Proof-of Work” takes up a lot of energy, thus isn’t the fastest or cheapest.

Other blockchains and their respective native tokens aim to improve Bitcoins “flaws”. For example, Ethereum is designed to be validated through a less energy expensive method called “Proof of Stake” in which transactions occur faster and cheaper

How is cryptocurrency different from regular money (fiat currency)?

Fiat is government-issued and backed by faith in a country, while crypto is decentralized and backed by technology. With fiat, a central bank can print more, causing inflation. With crypto, supply is often capped, keeping inflation in check.

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