Wednesday, November 18, 2020

Of Blockchain, Crypto and Coins – The Dinosaur’s Edition


Many do not understand what is these hype all about, of Bitcoin, Ledger and stuff like that and even worse, in the 21st century, even financial institutions are adopting the Blockchain technologies that come with it. So here is the brief run down for everyone to be up to speed.

 

Cryptography is the method of ENCRYPTING or shuffling of data into a scrambled piece of information that only the sender and receiver can understand. Something like the Nazi Germany’s Enigma machines during WW2. It contains a cipher text and a Private Key which is needed to unlock or decode the message. Crypto Coins are tokens or coins in a casino minted off a factory called a Mine which the limit is defined in the initial definitions or Contract, something like the Constitution. There is a limit to how many can be mined and / or circulated.

 

Coins or Tokens are what these assets are called and in the defined currency. Usually we will hear BITCOIN , ETHEREUM or tokens and the currency code will be like BTC , ETH or others. They are minted by means of a REWARD SYSTEM or MINING where each block they mined, they get a certain number of coins + the mining fees.

 

What is a Miner and Mining Fees. To pay for a transaction or send a message, you need to pay some sort of fee, like electricity tariffs to the producer. The Miners will mine the block, encode and sign the ledger collectively and share the rewards and finders fee. Think of it as the Postman who collects your checks for the bank to process and gets a fee on the postage stuck to the envelopes. Whoever pays higher fees gets their transactions through first and the cheapest will take the last priority, mainly there is a limit to the size of the queue.

 

A Block is a group of transactions , bound together as a collective and at the end of the specified block, defined as either by size of the block or time is signed at the end of the block and encoded to the chain. Think of your class homework is checked by the teacher , signed off and results *(Hash of the Transactions) is recorded into the Report Book and the report book is signed by the headmaster. So before next year starts, your headmaster checks the report book signed by the teacher, add that to the start of the next year report and it goes on and on. That is called a Chain.

 

Because it’s been signed off by the Headmaster, the results cannot be changed on your homework or test results because everyone can have a copy of the report books. That is called the Ledger. The ledger sits on the block chain.

 

There are some coins that piggy back on some other infrastructure. It may be sitting on the XCP CounterParty network which rides on Bitcoin BTC network or Ethereum based ERC-20 for Tokens or ERC-721 for non-fungible tokens *(more like a fantasy coin or other uses). The coin or token require a smart contract to create and issue the coins and some due diligence is needed. A transaction fee of satoshis *(about USD7 worth of BTC at current time) or Ether Gas *(called wei ~ approx. 25c in fees) are needed to encode the message into the chain.

 

DAX or commonly known as Digital Asset eXchange is an exchanger of assets. Think of it as a stock market where you trade your money for future contracts like Oil etc or Forex like USD-GBP-JPY etc. A DAX sometimes sell you assets in your local currency and at times allow you to trade in different pairs such as USDT-BTC-ETH or other major pairs.

 

Note that USDT is a TEETHER where the asset is pegged against USD safely kept in a custodian.

Do check and do a proper full due diligence. Think of them as Promissory Notes by the Central Banks. There are stable coins for currencies like the Singapore Dollar xSGD which are acceptable by exchangers such as Cryto.com, CoinHako, Luno and others.

16 comments:

  1. This is also a very good post which I really enjoy reading. It is not everyday that I have the possibility to see something like this. P2PB2B Referral Code

    ReplyDelete
  2. I'm impressed, I must say. Very rarely do I come across a blog thats both informative and entertaining, and let me tell you, you ve hit the nail on the head. Your blog is important.. https://givetime.io/

    ReplyDelete
  3. Nice information, valuable and excellent design, as share good stuff with good ideas and concepts, lots of great information and inspiration, both of which I need, thanks to offer such a helpful information here. bybit referral code

    ReplyDelete
  4. Such a very useful article. Very interesting to read this article.I would like to thank you for the efforts you had made for writing this awesome article. Krypto referral code

    ReplyDelete
  5. Excellent website! I adore how it is easy on my eyes it is. I am questioning how I might be notified whenever a new post has been made. Looking for more new updates. Have a great day! crypto marketing agency

    ReplyDelete
  6. It looks like there exists a trouble with your internet site utilising Opera web browser. this contact form

    ReplyDelete
  7. It is encouraged to clients to not place all cash in one cryptographic money and attempt to try not to contribute at the pinnacle of digital currency bubble. It has been seen that cost has been out of nowhere dropped down when it is on the pinnacle of the crypto bubble. Bitcoin Price
    Ethereum Price

    ReplyDelete
  8. BITCOIN STORAGE - Bitcoin is a famous digital currency and it is unlike the physical or traditional currencies used across the globe.  top crypto faucets

    ReplyDelete
  9. AAX is an exchange that raises the standards for integrity, security and performance AAX app

    ReplyDelete
  10. Yes i am totally agreed with this article and i just want say that this article is very nice and very informative article.I will make sure to be reading your blog more. You made a good point but I can't help but wonder, what about the other side? !!!!!!Thanks btc

    ReplyDelete
  11. Casino Tycoon: Resorts, Casinos & Gaming Locations | Mapyro
    Find 인천광역 출장샵 Casino 안성 출장샵 Tycoon, 논산 출장안마 Resorts, Casinos & Gaming locations 부천 출장샵 in 포천 출장안마 Indiana, Michigan, New Jersey, Pennsylvania and more.

    ReplyDelete
  12. Very interesting blog. Alot of blogs I see these days don't really provide anything that I'm interested in, but I'm most definately interested in this one. Just thought that I would post and let you know. Cryptocurrency insurance Canada

    ReplyDelete
  13. They will show the transactions to you, and you must agree that it is correct, or launch a dispute. Only the parties to the transaction ever see it. Bitmain shop

    ReplyDelete
  14. With the current World economic chaos caused by Covid, Crypto-based E-Commerce systems will present a much faster and safer form of using one's assets, especially if they can be converted to Gold, and stored digitally.gemini crypto

    ReplyDelete
  15. We have sell some products of different custom boxes.it is very useful and very low price please visits this site thanks and please share this post with your friends. Prop trading

    ReplyDelete
  16. Cryptographic money have been around for some time now and there are different papers and articles on nuts and bolts of Digital currency. Custom ERP

    ReplyDelete

Do Follow me on Facebook & like us!