The beginnings of money and the importance of trust
People have been exchanging things in barter systems since the dawn of humankind. This gets too complex as soon as more people and goods are involved.
What's the difference between a cryptocurrency like Bitcoin and fiat money?
Cryptocurrencies are digital assets that are a medium of exchange between two parties and allow direct transactions between individuals without the intervention of an intermediary.
How does a blockchain work?
A blockchain is a decentralised, tamper-proof database. In a blockchain, transactions are stored in blocks, with each newly generated block referring to the block before it.
What is double-spending and why is it such a problem?
“Double-spending” means that the same units of a currency are spent twice. Blockchains prevents this issue by combining an open ledger with cryptographic algorithms.
What is Bitcoin?
Bitcoin was the world’s first cryptocurrency invented in 2008 by Satoshi Nakamoto. A cryptocurrency is a digitally encrypted currency based on blockchain technology.
What is a wallet and how do I get one?
Cryptocurrency wallets are physical devices or software used to access, receive or spend cryptocurrencies such as Bitcoin, Ethereum and others by interacting with a blockchain.
What are public keys, private keys and wallet addresses?
A wallet address is a randomly generated set of numbers and letters. Public and private keys are needed to access a wallet address.
What is “Bitcoin mining” and how does mining work?
Mining is an essential process in the Bitcoin network. Miners of cryptocurrencies such as Bitcoin are computer owners who allocate their computing power to the peer-to-peer network to verify transactions.
What does mining difficulty mean?
Mining difficulty indicates how difficult it is to solve a complex cryptographic puzzle in the process of Bitcoin mining. The difficulty of mining increases or decreases over time, depending on the number of miners in the network.
What does pre-mined mean?
Bitcoin uses a process called mining to issue new coins, other cryptocurrencies are pre-mined. This refers to coins being mined (and distributed) before the official launch date of the coin.
Can a cryptocurrency like Bitcoin get hacked or shut down?
Although neither Bitcoin itself nor the blockchain have not been hacked since the inception of Bitcoin in 2008, interfaces where cryptocurrencies are handled, like wallets, are still vulnerable to attacks.
How can I keep my cryptocurrencies safe?
Keeping your cryptocurrencies safe is essential for any user of cryptocurrencies such as Bitcoin. Interfaces where we store wallets, keys and passwords are the most prone to abuse and theft.
What are transaction fees and why do I need to pay them?
Users of the Bitcoin network have to pay transaction fees to miners in the network to get their transaction included in the next block.
Do I have to pay taxes when I buy or sell Bitcoin?
In most countries, the mere act of buying cryptocurrencies, and often spending of cryptocurrencies, is considered a “taxable event” by law like any transaction involving a commodity.
What determines the Bitcoin price?
Unlike fiat currencies, the value of Bitcoin is not defined by a central bank or government, but by supply and demand.
What is the purpose of mining pools and how do they work?
As the Bitcoin network grew, individual miners realised that they would improve their chances of mining a block if they joined their mining resources with other miners.
What are Altcoins?
Many altcoins offer different unique features, such as distribution methods or mining algorithms different to Bitcoin.
What is market capitalisation (market cap) and why does it matter?
The term “market capitalisation” or “market cap” is an important metric in the evaluation of the market value of a cryptocurrency.
How to spot ICO scams
In the cryptocurrency world, scams are frequent and dubious projects are really hard to spot at first glance.
What is Cryptojacking and how can I prevent it?
The mining of Bitcoin and other cryptocurrencies is lucrative, hence some people began to abuse other users’ computers, unbeknownst to them, for their own financial gain.
What does Open Source mean?
The idea behind Open Source is a fairly small community of scientists and engineers sharing their progress and knowledge freely and openly.
What is a Bitcoin Node?
A node is a computer in the Bitcoin peer-to-peer network connected to other computers and sharing information.
What is Ethereum?
Computers in the Ethereum network have two functions: to record transactions and to produce smart contracts.
What is Ripple (XRP) ?
A global settlement network to enhance existing infrastructure and services, Ripple’s open source protocol and network is already being used by banks and other institutions.