Welcome to the First ever "It's all about crypto" class. Just like my other lesson, that's the "learn the basics - guitar theory expounded," this class would be somewhat in the same manner, aimed at educating crypto lovers and potential crypto lovers and would be once every week or twice, depending on some other external factors.
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I remember when I first started out here on steemit, to be honest, I was lost in the world of crypto, in other words, I knew nothing about crypto and I'd to do my own research. So, this class, would also be aimed at spicing the love of crypto in those people that wanted to learn about cryptocurrency but couldn't because of some vague terminologies used in this world. To kick off this class, I love to thank the steemit community for the platform and all my followers for their unending support and love.
let's get started
About Cryptography And Cryptocurrency
Basically, the coin world is a large one and in our time and age, it looks as though the cryptocurrency world is taking the center stage in trading and business transaction. Think of it this way, the coin world has made the transaction of large sum of money, running in the millions of dollar more easy to transaction.
Personally, I had always wondered what the crypto world was for and I had always found it difficult to understand because of the usage of some computing jargon and some technical concepts that always leaves you more confuse. So, I took out some time and dedicated it to learning more about the crypto world. This write up is basically to simplify what cryptocurrency is all about and how to go about trading coins in the coin market.
WHAT IS CRYPTOCURRENCY?
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This is like the most popular question people ask once they first get into the crypto world.
cryptocurrency is basically a medium of exchange used among people- who call themselves traders and investors.
Or...
Cryptocurrencies are classified as a subset of digital currencies and are also classified as a subset of alternative currencies and virtual currencies.
Cryptocurrency uses what is called cryptography to secure the transactions and to control the creation of new units(that's new coins).
Let Me Explain A Little Bit About Cryptography And Why It Is So Important.
There is a flood of information in our world today and a need for those information to be secured because most of them require a certain amount of privacy, hence, the creation of cryptography. So, what cryptography does is to construct and analysis protocols that prevents third parties(hackers or intruders etc) from reading privates messages.
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Cryptography is not only used in cryptocurrency but also in other parts like the military,governments etc. They construct some protocols that prevents intruders from getting access to classified information. That's the idea behind cryptocurrencies and cryptography.
Note there are several cryptocurrencies in the cyber world, the most used is the BITCOIN because of its popularity. Now, several other coins has been built up, which have the potential of being the next bitcoin.
The Three(3) Pillars Of Cryptography
Firstly, your perfect understanding of cryptography is the key to loving and also understanding cryptocurrency.
The 3 pillars of cryptography are;
- Confidentiality
- Integrity
- Availability
The internet is a public domain (place), which is the more reason information that goes into the internet must be secured. The internet is just a cluster of routers.
Routers are devices that connects Local Area Networks (LAN) to form a large internet. Routers are connected to routers, linking users to users or users to servers. That's the meaning of "the internet is a cluster of routers."
What Is Money??
Well, money is any item that is generally accepted as payment for goods and services and also for repayment of debts in a particular country or socio-economic context
Forms Of Money
- Commodity
- Fiat
Commodity money takes the form of a commodity with intrinsic (innate, inherent or essential) value. Example: Gold, Silver, Cigarettes.
Fiat Money: This is a currency without intrinsic (innate, inherent or essential) value. It is established by a government regulation or law. It was introduced as an alternative to the commodity money.
Here's what I mean, instead of giving out or buying clothes with gold or silver, you can simply used some coins or a few dollars to get what you want. In our time, fiat money is used to purchase commodity money. Here's what I Mean, you can use some dollars to purchase gold or silver...
Examples of Fiat money are: coins, currency and check deposits.
From the definition of cryptocurrency, I stated that cryptocurrency can be classified as a virtual currency.
Now, what is a virtual currency??
Virtual currency (virtual money) is a type of unregulated digital money, which is issued and usually controlled by its developers (not controlled by a bank), and used and accepted among the members of a specific virtual community (An example of a virtual community is Steemit).
Steemit is a virtual community, that deals with or makes use of virtual currencies like the Steemblockchaindollar (SBD), Steem and SteemPower.
Lastly, the European Banking Authority defined virtual currency as "a digital representation of value that is neither issued by a central bank or a public authority, nor necessarily attached to a Fiat currency, but is accepted by natural or legal persons as a means of payment and can be transferred, stored or traded electronically" (EBA, 2014)
Wow! This is really deep. Honestly, if you are interested in learning about the crypto world, this is the place!.
It's all about crypto
Thank you for reading...
A special thanks to all my followers...