Crypto 101

Cryptocurrencies are the next phase in the evolution of (digital) money and the internet’s next iteration (also referred to as web 3.0). 

Bitcoin is the first cryptocurrency. A decentralized digital “cash” system that allows money to be transferred via the internet without the need for a central bank.

An altcoin, or “Alt” for short, is referred to as any cryptocurrency other than bitcoin. “Altcoin” is a combination of two words “alternative” and “coin.” 

Blockchain is a distributed ledger (DLT) secured by cryptography that records digital data into a sequence of blocks (ledger pages) without the use of a third party.

A cryptocurrency wallet is an “application (similar to your online banking app)” that contains all the necessary information (address and digital keys) to access your crypto funds.

ICO, or Initial Coin Offering, is a mechanism for cryptocurrency firms to raise capital in the cryptocurrency market, comparable to an IPO in the stock market.

Ethereum is a cryptocurrency platform that allows you to create, deploy, and use decentralized apps (DApps) without the need for a third party. It’s known as “the world’s computer.”

Decentralized Finance (DeFi) is a new technology that seeks to bring the existing financial industry onto the blockchain. In other words, seeks to create a decentralized, transparent, and open digital economy.

A Non-Fungible Token (NFT) is a type of cryptocurrency used to verify ownership of something unique, such as digital artwork, sports cards, real estate, or in-game items.

Proof-of-work (PoW) is a consensus mechanism in which network participants must expend computing effort (solving mathematical puzzles) to secure a cryptocurrency ledger.

Proof-of-Stake (PoS) is an alternative consensus mechanism in which network participants must put their funds at stake to update and secure a ledger (blockchain).

The Metaverse is a 3D computer simulation (like the Matrix) that allows users to create avatars to work, meet, game, and interact with one another.