Albert Einstein once quoted “You have to learn the rules of the game. Then Play it better than anyone else”.
That’s exactly the reason we need to understand the basic rules of this digital game of Cryptocurrency and Blockchain.
I know it’s very easy for your readers. You people know more than me. But that’s is the exact reason I am explaining you few basic terms…Hahaha…!!
Every one of us wants to get filthy rich, ride a dope car and roam around with both arms around women/men. But is really investing in cryptocurrency the right thing? What even is it anyway?
Simplest Possible Answer: Cryptocurrency is basically a token in exchange for fiat currency. Just like you buy any physical asset like land, house, car etc. Similarly this is a digital asset which uses a super dope security measure called cryptography to secure your transactions. You can get to read more about cryptocurrencies here. So click here if you think you are dumb in this field. This will enlighten you.
It is very necessary to understand what exact things shake hands together to give rise to this billion-dollar industry of cryptocurrencies. And understanding these basic terms will give you a tiny idea of how to reserve some money for yourself from those billions of dollars.
Following are few basic and important terms used in cryptocurrency world:
It is basically a simple computer which has the blockchain information.
Nodes basically act like your husband/wife. They know everything about you, and also keep a track of your activities. In the crypto world, you are the blockchain entity and nodes are your husband/wife.
This is a process is about providing consent and getting paid for a transaction. These transactions mainly include Crypto exchange. Mining basically allows the users and the cryptocurrency controllers to maintain a smooth flow of the monetary outcomes of the same.
It’s like when you are about to marry someone. You and your partner say the vows and the priest says “You may now kiss each other”. That priest right there is a miner.
It is a situation in which a blockchain splits into two or more individual chains. It happens in cases like where a person holds multiple crypto entities and the nodes are obliged to create fork chains for each cryptocurrency entity undergoing transaction in the user device (Damn!! I did not understand a single thing.).
It’s exactly like your mind splits between choosing dark chocolate and milk chocolate. And in this situation, we end up choosing both.
The wallets which operate transaction through software and a manual verification by the user to buy or sell a crypto entity.
A device which is specifically designed to store the cryptocurrency. They are basically more secure than software wallets.
These are not in trend as of now because the security measures taken in software wallets are very good.
It is a process which allows multiple nodes to store parts of a single blockchain.
This basically helps in improving the overall performance of a node, when observed on an individual level.
It’s like if you’re carrying eight shopping bags for your girlfriend, you’ll be tired after a while and you won’t be able to perform as much expected. But if you both carry four bags each, the weight to be carried will be distributed and you can roam around with your girl for a longer time.
This process of distributing the load of holding block data among nodes is called Sharding.
Cold storage is an offline storage for cryptocurrencies.Just like you keep your important movies stored on an external hard drive(LOL: Lamest Of Lame).
It is very similar to keeping a backup of your block data in your pocket. Hackers cannot hack your pocket to steal data, which basically makes the crypto entity safe.
I have written a whole article on blockchains, click here to know more.
That was all about basics terms related to cryptocurrency. I know this article was not that funny, but sometimes it’s fun to be not funny. Click here for more such wild articles. Follow Techie Scoops on Instagram to stay up to date with latest tech trends.