Crypto Fundamentals

The current crypto ecosystem starts with the introduction of Bitcoin in 2009 from an unknown individual or group using the pseudonym Satoshi Nakamoto. Satoshi writes in the Bitcoin whitepaper (https://bitcoin.org/bitcoin.pdf) , “What is needed is an electronic payment system based on cryptographic proof instead of trust,” in response to the 2008 financial crisis. Satoshi introduced digital payments using cryptographic proof and a peer-to-peer network in lieu of a third-party financial institution. Cryptography and peer-to-peer networks opens the gates to the global economy we are building today.

What is Cryptocurrency?

Cryptocurrency, or crypto for short, is a digital or virtual currency that uses encryption techniques to secure and verify transactions and to control the creation of new units. Unlike traditional currency, which is controlled by central banks, cryptocurrencies are decentralized and operate on a peer-to-peer network.

What is Blockchain?

Cryptocurrencies are based on blockchain technology, which is a decentralized ledger that records all transactions on the network. The blockchain ensures that every transaction is secure, transparent, and irreversible. The verification of transactions on the blockchain is done through validator stake or a process called mining, which involves using computational power to solve complex mathematical problems.

Values of the Crypto industry

Decentralization: The crypto industry values decentralization, which means that power is distributed among many participants rather than being concentrated in the hands of a few central authorities.

Transparency: Cryptocurrencies operate on a public blockchain, which means that all transactions are recorded and can be viewed by anyone.

 Security: Cryptocurrencies use advanced cryptographic techniques to secure transactions and ensure that the network cannot be manipulated or compromised.

 Innovation: The crypto industry values innovation and is constantly exploring new ways to use blockchain technology to solve real-world problems.

 Privacy: Many cryptocurrencies offer enhanced privacy features that allow users to conduct transactions without revealing their identity or personal information.

 Open source: The crypto industry values openness and collaboration, with many developers and community members working together to build and improve upon the technology.