CryptoURANUS Economics: 08/05/18

CryptoCurrencies


Sunday, August 5, 2018

Decentralized Autonomous Organization [DAO]: Defined in CryptoCurrency

Decentralized Autonomous Organization [DAO]: Defined in CryptoCurrency

 

Decentralized Autonomous Organizations also DAO describe leaderless organization supported by a network of computers. 


To be decentralized, it must have no central location because it is running on a network of computers. And because there is no single leader and has its own rules to follow, it is autonomous, or self-governing.

Directed Acyclic Graph [DAG]:: Defined in CryptoCurrency

Directed Acyclic Graph [DAG]:: Defined in CryptoCurrency

A directed acyclic graph or DAG is a structure that is built out in one single direction and in such a way that it never repeats.Here a “graph” is simply a structure of units. 



“Directed” describes the connection between each unit in the structure, and that they all flow the same way. And “acyclic” means describing something that is not circular or repeating. 


A good example of a directed acyclic graph is a checklist. In order to do step 10, you must have done step 9, and before you can do step 8, you must have done step 7 and so on.

If you were to list out these steps on a graph, you would see the flow from 1-10 and that it never repeats itself going back to 1. If it did repeat, it would not be a directed acyclic graph.

Another example of a DAG is a family tree. Your grandparents had your mom and her brother. Your mom met your dad and had you. Your mom’s brother met his wife and had their kids. In no way does your grandpa or grandma ever show up again beneath you.

Currency: Defined in CryptoCurrency

Currency: Defined in CryptoCurrency

Currency is a system and its units for exchanging value. The value of each unit is agreed to be worth something. 


Currency is used to pay for things and services as well as debts. 


The history of the word currency comes from current, meaning in use now. Currency is usually in use now because the government or banks produced it and we all agree it has value.

Cryptology: Defined in CryptoCurrency

Cryptology: Defined in CryptoCurrency

Cryptology is the study of making information unreadable and readable again so information can be sent in secret.

Cryptojacking: Defined in CryptoCurrency

Cryptojacking: Defined in CryptoCurrency


Cryptojacking is the secret use of your computer to mine cryptocurrency for someone else.


In the beginning, cryptojacking was limited a program installed on the victim’s computer and that secretly mines cryptocurrency. 


However, the latest type of cryptojacking is done in your Internet browser. The website doing the cryptojacking uses your computer power to earn crypto for it.

Sometimes the owners of website doing the cryptojacking aren’t even aware of what’s going on! A thief installs cryptojacking software on the website and steals from the customers.

Cryptography: Defined in CryptoCurrency

Cryptography: Defined in CryptoCurrency


Cryptography defined as the study of making ordinary information unreadable.


The purposes of cryptography can include:

  • Proving that the sender actually sent the message.
  • Keeping information confidential until an approved identity is provided.
  • Preventing theft and alteration.
There are many types of cryptography including hiding words in images, using micro dots and computer programs. 

With cryptocurrencies, we hide money and the people who sent them in a scrambled, unreadable form.

The information can be unlocked and made readable using a code also known as a key. The key is made up of a string of letters and numbers.

Cryptocurrency: Defined in CryptoCurrency

Cryptocurrency:

 Cryptocurrency: Defined in Cryptocurrency is a cryptocurrency (or less formally a coin) is a decentralized payment network with an independent currency-like asset that functions on the network and is essential to its function.



As opposed to government electronic money, cryptocurrencies use modern cryptography and decentralization to secure transactions and creation of monetary units. Cryptocurrency assets cannot be seized from their owners by a decree. Cryptocurrency transactions are global and cannot be easily censored.



As opposed to government electronic money, cryptocurrencies use modern cryptography and decentralization to secure transactions and creation of monetary units. Cryptocurrency assets cannot be seized from their owners by a decree. Cryptocurrency transactions are global and cannot be easily censored.
Cryptocurrency is an electronic money that uses technology to control how and when it is created and lets users directly exchange it between themselves, similar to cash.




Crypto- is short for “cryptography”, and cryptography is computer technology used for security, hiding information, identities and more. Currency simply means “money currently in use”.

Cryptocurrencies are a digital cash designed to be quicker, cheaper and more reliable than our regular government issued money. Instead of trusting a government to create your money and banks to store, send and receive it, users transact directly with each other and store their money themselves.

Because people can send money directly without a middleman, transactions are usually very affordable and fast.

To prevent fraud and manipulation, every user of a cryptocurrency can simultaneously record and verify their own transactions and the transactions of everyone else.

In the real world, a book used to record transactions is called a ledger. And so it is with this digital money. But unlike in the real world, with cryptocurrencies, anyone can keep their own complete copy of this ledger.

Because the data is public and maintained by many thousands of people, transactions are permanent and very secure.

With public records, cryptocurrencies don’t require you trust a bank to hold your money. They don’t require you trust the person you are doing business with to actually pay you.

Instead, you can actually see the money being sent, received, verified, and recorded by thousands of people. This system requires no trust. This unique positive quality is known as “trustless”.

Cryptoanalysis: Defined in CryptoCurrency

Cryptoanalysis: Defined in CryptoCurrency


Cryptoanalysis is the study of making unreadable, secret information readable again especially when you are not supposed have access to it.

Crowdfunding: Defined in CryptoCurrency

Crowdfunding: Defined in CryptoCurrency

Crowdfunding is a way of raising money by getting small amounts of money from many people. By getting $20 from 1,000 people, a company can quickly and easily raise $20,000.

Crypto: Defined in CryptoCurrency

Crypto: Defined in CryptoCurrency


Crypto is short for cryptography or cryptocurrency. Crypto- comes from the Greek word meaning “hidden”.

Correction: Defined in CryptoCurrency

Correction: Defined in CryptoCurrency


A correction is defined as a change in price of an asset (stocks, currency, etc.) by 10% or more, lasting up to 2 months. 


Corrections usually interrupt upward trends with negative drops of 10% from the recent highest price. 


A correction is smaller than a bear market (averaging a 20% reduction) and shorter than a recession (averaging 6-18 months).

Core Wallet: Defined in CryptoCurrency

Core Wallet: Defined in CryptoCurrency


A core wallet contains the entire blockchain as opposed to a piece of it and allows users to not only receive, store and send digital money but also program on or with it. 


Bitcoin transactions are kept on a digital record, known as the blockchain, and the blockchain is maintained by thousands of people around the world. 


This digital record is growing larger every day and in 2016, it exceeded 100 gigabytes. A wallet is software that interacts with the network of recordings (blockchain) and lets users receive, store, and send their digital money.

Contract: Defined in CryptoCurrency

Contract: Defined in CryptoCurrency


A contract is defined as a spoken or written promise between two or more people for some benefit.



Usually, a contract has a legal quality. That means, if John does not accomplish what he promised to do in the contract, Alice can reach out to the government and get them to force John to complete his promise.



See smart contract for more information.

Consensus: Defined in CryptoCurrency

Consensus: Defined in CryptoCurrency


Consensus is defined as agreement by the majority of people about something. 


Consensus requires at least 51% of the people agree on something. Consensus is a very important part of cryptocurrency technology.

  • With consensus, the digital records maintained by the network of computers, known as the blockchain, can be agreed upon as correct.
  • With consensus, decisions can be made on how to fix or upgrade the cryptocurrency technology without relying on one single leader.
Consensus is a necessary feature in a decentralized organization like cryptocurrencies.

Confirmation: Defined in CryptoCurrency

Confirmation: Defined in CryptoCurrency


A confirmation is defined as proof that your transaction or data was recorded and verified on the blockchain. 


A blockchain can be compared to a digital book that can record anything where each page in that book is known as a block. The blockchain is simultaneously maintained by a network of computers who must all agree on the data.


The first confirmation comes when a block records your data. Every block recorded afterwards is counted as an additional confirmation.

Any bad actor who wants to manipulate the blockchain would need to have at least 51% of the computing power of the entire network to make changes. In a big blockchain like bitcoin, that’s incredibly expensive and difficult.


After sending data to the blockchain, you have to wait for one of the computers maintaining the network to record and verify your data into a block. 


Because blocks are connected to each other, every block confirms all prior blocks. That means the longer the blockchain gets, the more secure earlier blocks are.

When using bitcoin, it is recommended you wait for at least 6 confirmations (5 blocks recorded after yours) before considering your transaction is permanent. After 6 blocks, there is less than a 0.1% chance your data will ever be altered.

Cold Storage: Defined in CryptoCurrency

Cold Storage: Defined in CryptoCurrency

Cold storage is defined as digital data storage that takes longer to access and quite often is not connected to the Internet. Also known as a “cold wallet”.


Unlike hot storage, cold storage is typically not connected to any computer, network, or the Internet. Cold storage always has longer access times than hot storage. Longer access times means greater control and security.

There are many ways to set up cold storage. The common techniques include:
  • Putting the data in an unplugged computer.
  • Purchasing and using a designed and secure USB known as a “hardware wallet”.
  • Storing the access codes on a piece of paper known as a “paper wallet”.

Coinbase.com: Defined in CryptoCurrency

Coinbase.com: Defined in CryptoCurrency


Coinbase is a cryptocurrency exchange that allows people to trade regular money like US dollars for bitcoin, litecoin, ethereum. Coinbase also has software that lets businesses accept cryptocurencies as payment.

Coin: Defined in CryptoCurrency

Coin: Defined in CryptoCurrency


A coin is a unit of digital value. When describing cryptocurrencies, they are built using the bitcoin technology and have no other value unlike tokens which have the potential of software being built with them.

Code: Defined in CryptoCurrency

Code: Defined in CryptoCurrency


A code is a method of making information unreadable so it can be kept secret and can be used to make the information readable again. By replacing the meaning of the information with something meaningless, the message becomes unreadable. Codes use a secret key made up of letters and numbers that must be used to unlock the code.

Circulating Supply: Defined in CryptoCurrency

Circulating Supply: Defined in CryptoCurrency


Circulating supply is the number of coins currently available and in the hands of people. Coins that are locked, reserved or not able to be sold and traded are not included in the circulating supply.

Ciphertext: Defined in CryptoCurrency

Ciphertext: Defined in CryptoCurrency


Ciphertext is text that has been made unreadable so the information it contains can be kept secret.

Cipher: Defined in CryptoCurrency

Cipher: Defined in CryptoCurrency


A cipher is any series of steps that will make information unreadable so it can be kept secret and can be used to make the information readable again. Ciphers including those used in cryptocurrencies also use a secret key made up of letters and numbers that must be used to unlock the cipher.

Choyna: Defined in CryptoCurrency

Choyna: Defined in CryptoCurrency

Choyna is a mispelling of “China”. Many people in China have invested in bitcoin and other cryptocurrencies making them very influential on cryptocurrencies. Choyna is an imitation of Donald Trump saying “China”.

Chain Split: Defined in CryptoCurrency

Chain Split: Defined in CryptoCurrency


A chain split is a break in the digital recordings, known as blockchain, created by computers running cryptocurrency technology. 


With cryptocurrencies, only one recording (block) should be made at a time. 


However, if the network of users managing cryptocurrency technology disagree on how the blocks should be made, they may split off, each forming their own chain of recordings. This happened with Ethereum in 2016 and now we have Ethereum and Ethereum Classic.

Centralized: Defined in CryptoCurrency

Centralized: Defined in CryptoCurrency


Centralized describes a system or organization that is controlled by one person or group. Companies are centralized organizations.

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