This entry is part [part not set] of 3 in the series `Getting started with Crypto`
Getting started with Crypto

Cryptocurrency is a form of digital currency that is highly secure, robust, and often anonymous. (crypto- concealed/secret/hidden)

  • It is a digital asset, used as a medium of exchange
  • Ownership records are stored in a public ledger
  • It is decentralized. i.e: It is not issued by a central authority (as opposed to a FIAT or central banking system)
  • The state is maintained through distributed consensus (Do read: )
  • Ownership can be proved only cryptographically, and a transaction can only be performed by proving ownership of the units

Blockchain Technology

A block chain is a growing list of digital records, linked using cryptography. Each block contains the cryptographic hash of its predecessor block.

Bitcoin

Bitcoin is the first decentralized crypto-currency. It was released in 2009.

Crypto Tokens

A blockchain account can also provide functions other than making payments (e.g: in decentralized applications or smart contracts). In this case, the units or coins are sometimes referred to as crypto tokens/cryptotokens.

AltCoins

Since then, there have been 6000+ alternatives (altcoins/alternative digital coins) that were launched after the massive success of BitCoin. Basically, any crypto other than Bitcoin can be called an altcoin. Some of them are very promising (they either make the technology better/faster or find a niche use-case). Be warned that some of them are just milking the fad.

Cryptocurrency markets are also de-centralised, which means they are not issued or backed by a central authority such as a government.


Series: Getting started with Crypto