The topic of Crypto currency and blockchain technology can initially seem a little overwhelming and confusing, but the basic concept doesn't need to be. Cryptocurrencies often referred to as 'digital currencies' are the byproduct of the backend technology called the blockchain. These two terms (cryptocurrency and blockchain) go hand in hand. Cryptocurrency is the oil that helps run the blockchain, and it is also the rewarding value for anyone who supports the blockchain by processing transactions.
Lets start with a couple key terms and definitions...
Cryptocurrency - a digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank.
Blockchain - is a growing list of records, called blocks, which are linked using cryptography. Blockchains which are readable by the public are widely used by cryptocurrencies. Private blockchains have been proposed for business use.
Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data (generally represented as a merkle tree root hash). By design, a blockchain is resistant to modification of the data. It is "an open, distributed ledger that can record transactions between two parties efficiently and in a verifiable and permanent way". For use as a distributed ledger, a blockchain is typically managed by a peer-to-peer network collectively adhering to a protocol for inter-node communication and validating new blocks. Once recorded, the data in any given block cannot be altered retroactively without alteration of all subsequent blocks, which requires consensus of the network majority.
Though blockchain records are not unalterable, blockchains may be considered secure by design and exemplify a distributed computing system with high Byzantine fault tolerance. Decentralized consensus has therefore been claimed with a blockchain.
Blockchain was invented by Satoshi Nakamoto in 2008 to serve as the public transaction ledger of the cryptocurrency bitcoin. The invention of the blockchain for bitcoin made it the first digital currency to solve the double-spending problem without the need of a trusted authority or central server. The bitcoin design has inspired other applications.
Terminology
Wallets -
Exchanges -
Mining -
Rigs -
Hashpower -
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