Cryptocurrency
Cryptocurrency is a digital form of money that’s used as an alternative to physical cash. Digital currencies like Bitcoin and Ethereum have gained popularity for their secure transactions and peer-to-peer networks, without the need for a centralized government or bank. This allows for users to transfer money globally and instantly.
Learn About Popular Cryptocurrencies
Blockchain
A blockchain is similar to a bank’s balance sheet in that it records the transactions of a cryptocurrency. This record is stored on blocks and made publicly available for users to verify the value of the coin in each transaction. Each cryptocurrency is linked to their own blockchain and uses cryptography for security, making it hard to alter information.
Cryptography - the art of writing or solving codes.
Crypto Wallets
To use cryptocurrencies you need a wallet to store your private key, or password, to access your crypto and allow you to send or receive currencies. Your crypto is not actually stored inside the wallet, but instead resides within the blockchain, so these private keys are essential to proving ownership of your digital currency.
Wallets can be used in the form of apps, softwares, or physically on a ledger, and most specialize in a particular crypto blockchain, such as Coinbase Wallet for Bitcoin or Metamask for Ethereum.
Smart Contracts
Cryptocurrencies use smart contracts, or computer programs that follow an “if this then that” structure, to execute transactions when the conditions are met. These establish the terms of an agreement and run as a code on the blockchain. It’s an easy, private way to ensure both party’s end of the deal are fulfilled.