How NFT Cypherpunks Help Holders Get Richer

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Non-fungible tokens have become one of the most popular investment assets. Collectors and gamers massively bought up NFTs in the hope of reselling them at a higher price or using them in the metaverse or as a tool of preferences included in the mechanisms of the project’s functioning. The development of the Play-2-Earn sector has expanded the scope of tokens, which can now be used as avatars or attributes in computer games. In addition, some NFTs can generate good returns through secondary sales. How non-fungible tokens are used today and whether collectible pictures have a future, we will consider the example of Cypherpunks.

NFT with history is always more valuable

The first NFTs were created back in 2017. It was at this moment that crypto-kitties and crypto-sharks appeared on the market, which was too primitive in their execution and game mechanics. In 2018, the idea of ​​creating Cypherpunks came up. The creators wanted to tell users about crypto encryption in an accessible form. But at that time it was something unusual and difficult for the average man in the street. Now it is a whole industry of cryptocurrency and blockchain with its own history.

Today, the original Cypherpunk collection has 30 unique NFTs traded on the OpenSea marketplace. Every week the issuing company releases a new unique cypherpunk, the price of which rises proportionally from lower to higher. The last cypherpunk issued was sold for 6.15 ETH, which is more than 27,000 dollars.

The developers explain the success of the Cypherpunks collection by the presence of historical context, as well as the limited number of copies.

“We have deliberately released a very limited collection of Cypherpunks to bring token holders to true digital art connoisseurs. The cost of NFT will gradually increase as the project develops”, comments founder M. Kubrick.

NFT for Play-2-Earn games

This winter, the company will release two more collections of NFT tokens that will be used in the new Play-2-Earn game, which is scheduled to launch in 2022.

“The new collections will include 3000 NFT and 30,000 NFT. In addition to being linked to the pool and blockchain, they will be used to participate in the Play-2-Earn game, which we will launch next year”, says M. Kubrick.

Cyhperpunk 30 NFT eligible to generate nodes on the blockchain, one of the last stages and most ambitious goals of the project.

Cypherpunk: rebels has 3,000 tokens. The sale of the NFT collection starts on December 15th. The owners are directly involved with the functional collection in the “Devouring pool”. Inclusion in the “founder’s bonus” pool at the stage of node formation.

Сypherpunk: anarchist has 30,000 tokens. Each user will be included in the “conceptualist” pool at the stage of forming the network of nodes.

Each NFT will be a unique character in the game, with a ranking system depending on the rarity of the collection.

In December, the company will start selling NFTs from the Cypherpunk: rebels collection. Therefore, today users can register in the white list and receive special conditions for the purchase of NFT.

The stablecoins that are changing the world of finance

In addition, the issuing company plans to issue its own stablecoin, which will “reflect the level of user confidence in the traditional financial system.”

“We can accurately measure and track how and at what rate the US dollar loses its initial value relative to itself. After all, the value is trust in the current government and the US economy. If now we see (take figurative values) that confidence in the dollar is equal to 100 units, then with the same certainty we can say that the value of 110 is 10% more, the advance of 10% is an understandable advance, but there is a simple conclusion that it is higher than 100 % of the advance is already forced connivance. The advance payment of 100% was passed a long time ago, we give one more chance and start the countdown over again”, commented M. Kubrick.

Algorithmic stablecoin based on the Reverse USD index.

USDR is a token whose price is the expression of the Reverse USD index. A person issuing USDR from USDT receives the number of tokens corresponding to the index coefficient, for example, if the index reflected a 10% drop in the value of USD, this means that the rate became 1 USDT to 0.9 USDR, but with the reverse exchange at the same moment, 0.9 USDR will be changed to 1 USDT. The pool is closed within the USDT-USDR exchange, the usual dollars will always be available for withdrawal. The amount of USDT that provides USDR will always provide an equivalent exchange in the opposite direction, and if a person puts 1 USDT into the pool, he will receive 1 USDT back, even if the USDR rate is $0.1.

The CexToDex index will reflect the process of transition of the outdated centralized financial system to the new one – decentralized.

This index has a numerical value, the ratio is representing the total value of values ​​in two areas denominated in dollar values. Fiat currencies and derivatives are valued essentially in themselves or in the base currency of the US dollar. This indicator has an understandable nature and its growth is commensurate with the progress and general development of human society. There is also a process, the essence of which is partially described in the information accompanying the Reverse USD index can be described as an uncontrolled process of devaluation of common values ​​due to the devaluation of the currency in which almost everything in our world is now denominated. We will change this approach.

More information on how USDT-USDR works, games in the cypherpunk universe, and the future of blockchain can be found on the website and on social media networks of the project.

Summary:

The creation and popularization of NFT are indeed changing the traditional finance market significantly. Non-fungible tokens are becoming not only digital collectibles but also used in the Play-2-Earn gaming sector. The widespread use of NFT allows users to profit not only from secondary sales but also through integration into the functional mechanisms of projects, such as games.

EverGrow Coin And HUH Token – Wealth Generating Tokens With High Demand

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EverGrow Coin (EGC) and HUH Token continue to release information regarding their projects and future plans. This has resulted in an increase in attention for both cryptocurrencies. EverGrow Coin has already shown many positive traits from its presale and reward systems. HUH Token is only offering its presale for another few days, and then it will be available to the public. The presale price could be the best opportunity to buy the token.

Seven weeks after its debut, EverGrow Coin has surpassed several prior records in the crypto world. More than $27 million in BUSD incentives were given, and EverGrow Coin now has more than 100,000 owners.

As part of a recent AMA, the EverGrow team discussed their plans to create a play-to-earn game on the NFT Marketplace. A decentralised NFT lending platform and Staking Pool are being added to ensure token values are backed by the Ecosystem of utilities that EverGrow is developing. Crator.com, a subscription-based content platform, provides access to high-quality content. EverGrow tokens will once again be purchased from exchanges by developers, permanently removing them from the circulation supply.

Token holders who buy, sell, or transfer EverGrow Coin get an additional 8% of their tokens returned to their accounts. Automated redistribution ensures that every coin holder receives their fair share according to the total number of EverGrow coins they own. Token holders will also benefit from a rise in the value of their Tokens due to the price increase on exchanges.

HUH Token has also shared some incredible features and comforting information to demonstrate that they are a reliable cryptocurrency.

HUH Token is currently under audit by Certik and have already been audited successfully by Shellboxes and Solidity Finance. The purpose behind this is to resolve any potential outstanding issues with their smart contract. This will prevent any potential issues going forward. Planning for the future is a strong indication that HUH Token is here to stay.

HUH Token is similar to EverGrow Coin in that it can also include a passive income stream. While anyone holds HUH Token, they can continue to have more of it reallocated to their wallet. This occurs because a small fee is attached to every transaction that occurs using HUH Token, this fee is then redistributed across all HUH Token Holders. Therefore, the greater the trading volume, the greater the rewards for holders. If the market price of HUH Token increases, then each token will be worth more, resulting in a massive increase in returns for those who held onto their tokens.

The second wealth-generating feature that HUH Token provides is their unique referral system that produces BNB as a reward for introducing more people to the HUH Token Community, nicknamed HUH Nation. When someone uses the referral link and make their first purchase, the person who gave them a referral code will receive 10% of that purchase as BNB. This is an exciting feature because it will result in holders generating two different crypto assets instead of one. This results in the risk of a portfolio being spread across two cryptocurrencies instead of one. If one increases in value and the other decreases, the overall value will remain safe.

EverGrow Coin and HUH Token are cryptocurrencies that have vast potential for growth in the future. Increasing wealth is a major interest for people who buy different cryptos and are hoping for returns. HUH Token is approaching the end of presale; joining this opportunity now could be the best time. They are also incentivising individuals to do so by offering 25% more tokens if buyers become involved before the end of the presale.

Follow HUH Token on their Socials before they Launch:

Website: https://huh.social

Telegram: https://t.me/HUHTOKEN

Twitter: https://twitter.com/huhtoken

Instagram: https://www.instagram.com/huhToken/

Which Crypto Ad Networks Pay the Most?

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Which Crypto Ad Networks Pay the Most?

Today, webmasters have more choice than ever when it comes to crypto advertising networks, but this choice comes at a cost. Obviously, all website owners want to make as much as they can when using crypto advertising networks but calculating that profitability without testing can be tough.

 

So, to help make the decision on cryptocurrency advertising a little easier, we spoke to dozens of webmasters and conducted an experiment in order to uncover which crypto ad network is the best paying and boasts best tools to optimize your revenue streams.

 

Our experiment looks at the 3 leading crypto ad networks, which are Cointraffic, Coinzilla and Bitmedia. Each crypto ad network was tested on the same website for a 1 week period. To be precise, the banners were set up on an online crypto mining simulator. It generates quite a healthy volume of traffic per month but is incomparable to the views accumulated by renowned news publications. Therefore, it serves as a great median and gives an understanding of what both smaller and larger traffic websites can and should expect from the crypto ad networks in question.

How to Become A Wizard at White Papers

Want to read a white paper but find them too difficult? This PDF makes it easy.

If you are brand new to crypto, you may face a steep learning curve in this PDF. I suggest you first take a look at my Intro to Crypto and progress through the other free PDFs such as How I Bought My First Cryptocurrency before continuing here.

A white paper is an informational document written to persuade people to support a product, service or idea.

In this PDF, you will learn how to become a wizard at understanding white papers.

When dealing with cryptocurrencies, white papers explain the purpose and technology. A white paper is created by the founders and/or developers of a crypto to help sell the crypto. But instead of pushing emotional buttons, they provide facts, diagrams, statistics, and quotes.

White papers are written by technically focused individuals for technically interested buyers. They are written to explain a complex and technical subject or product.

With many hundreds of cryptocurrencies, there is an equally massive amount of white papers. One of the first steps for a cryptocurrency to be recognized as professional is to have a published white paper.

Some cryptocurrencies are also publishing what can be called a “light paper”. Just like a white paper, light papers explain the purpose and technology, but unlike a white paper, they are not technical.

Please note, none of the writings by me or Decryptionary are investment advice. Decryptionary cannot accept responsibility for any loss or inconvenience caused by reliance on any material contained in this document or on Decryptionary.com. For more information, please refer to the Terms and Conditions.

Why I’d Read a White Paper

There are often two reasons I find myself opening a white paper:

  • So I can quickly understand if this crypto is legitimate and valuable.
  • So I can understand how this crypto differentiates itself from others and what makes it valuable.

The first reason requires me to scan the white paper. The second reason requires me to read most, if not all, of the white paper to gain a complete understanding of it.

This PDF will help you apply the first method: quickly scanning a white paper to quickly understand a crypto.

White Paper Formula

Almost all crypto white papers are designed in this sequence:

1. Abstract – A summary of the document.

2. Introduction – A statement describing a current problem and how the crypto might solve the problem.

3. Technology – A series of chapters describing the technology of this cryptocurrency.

3a. Transaction Technology – A description of how the crypto is exchanged between people.

3b. Mining Technology – A description of how transactions are verified and recorded.

3c. Network Technology – A description of the blockchain technology and how data is sent, received, verified, and recorded.

4. Incentive – A description of why anyone would want to participate in the mining.

5. Emission Plan – The strategy for the creation and distribution of new cryptocurrency coins or tokens. It has also been called a Token Generation Event (or TGE).

6. Conclusion – A review of the information shared.

7. References – A list of other white papers and documents mentioned in the white paper.

There may be many other chapters, especially in the technical section. But all white papers follow the above formula.

Common Terms Found in White Papers

The following terms are very common in many of the white papers I’ve recently studied. Becoming familiar with these terms will help you study white papers and get a better understanding of them.

You can find these in my dictionary, just click on a word to jump to its definition.

8 Steps to Protecting Your Cryptocurrency

And why a bitcoin wallet just isn’t enough.

Protecting your cryptocurrency as well as online security should be your priority, after purchasing your first cryptocurrency and diversifying your investment into altcoins.

Normal computers are not very secure. They can have viruses and other bugs which allow people to spy in on you and your information as well as make forced changes to your computer.

As mentioned in intro to crypto, cryptocurrencies distribute the responsibility of verifying and recording transactions to any number of computers. This system is known as the “blockchain”.

The distributed recording system is commonly described as “immutable” because once data is verified and recorded it becomes permanent and nearly impossible to edit by hackers or other destructive people.

Because the blockchain lets two people transact directly with each other, there is no need for middlemen such as banks and payment system companies like Paypal.

On the other hand, cryptocurrencies have none of the regulation and insurance found in traditional banking because banks and governments have no part in creating or maintaining crypto.

This organizational independence means you are responsible for safely storing your access keys. You are also responsible for the security of your email, phone, and computer. To protect against any single point of loss, you should also create secure backups of your access keys.

If your email, phone and/or computer is not secure and your bitcoin is stolen, there is nobody to call to get your money back.

The most famous and widespread theft of bitcoin was valued at $450,000,000. While there are other smaller and less-known thefts such as losing $8,000 in Coinbase and having $20,000 stolen from Bittrex the point I’m trying to make is, you are responsible for your crypto.

In this walkthrough, I’ll be showing you the different steps I’ve taken to protect my computers, accounts and cryptocurrency for the long term.

Please note, nothing published by me or Decryptionary constitutes an investment recommendation, nor should any data or content published by Decryptionary be relied upon for any investment activities. The following information provides only simple steps you can take to increase protection of your crypto. Decryptionary cannot accept responsibility for any loss or inconvenience caused by reliance on any material contained in this article. For more info, please refer to the Terms and Conditions.

8 Step Protection Overview

  1. Keep your information private, stay secure.
  2. Only use strong passwords for your email and crypto accounts and use a password manager like Lastpass.
  3. Create a new, secure email only for crypto at Protonmail. Make all crypto accounts use that email.
  4. Add 2 Factor Authentication (2FA) to all of your accounts using the Authy app.
  5. Use strong antivirus software with a good reputation.
  6. Avoid fake websites and emails, known as “phishing” that aim to steal your information.
  7. Spread your cryptocurrency among several wallets.
  8. Tell a trusted family member, someone who might inherit your wealth, about your crypto investments. Provide them with access in case anything unfortunate happens to you.

1. Keep your info private, stay secure.

Social Media

Believe it or not, if you mention on Facebook, Twitter or other social media that you trade cryptocurrencies on an exchange, you become a potential target for hackers.

Obviously, throughout Decryptionary and my articles, I’ve shared that I trade cryptocurrencies. To reduce my risk, all of my accounts were set up from a private email address that has never been exposed. More on this in #3.

Public WiFi

Public WiFi networks in hotels, coffee shops, airports, and stores are an easy target for hackers. Those networks provide a window to your private online data.

If you want to access your cryptocurrency accounts on a public network, using a Virtual Private Network (VPN) such as ExpressVPN or TunnelBear will prevent your information from being intercepted. A VPN will also hide your identity, location, and IP address which identifies your device.

2. Create strong passwords and use Lastpass.

Create Long Passwords

It turns out short, complex passwords are easier to hack than long ones. For example, if tested, “C0mpl3x!”, would be easier to guess than, “HeyThisIsMyPassword!”.

That’s because a hacker has to guess at 20 characters which is more than twice as long as the first password’s 8. The longer the password, the harder it is for a computer to discover it.

Ideally, your password should be 20 characters or longer.

Create Complex Passwords

  • Don’t use common dictionary words like monkey, orange, mustang, and password.
  • Don’t use letters or numbers in sequence like 12345 or abcdef.
  • Don’t use repeated letters/numbers or keyboard patterns like 111, aaa, qwerty, and asdfgh.
  • Don’t use personal information like family names, addresses, and birthdays.
  • Don’t repeat the same password for any of your accounts.
  • Consider using spaces, instead of “mypassword”, use “my password”.
  • Consider capitalizing letters like, “My Password”.
  • Consider using misspellings like “My Pas$word”.

Store Your Passwords in Lastpass

Lastpass is a password manager. Use it to store your passwords so you don’t have to remember them. Once you save a password, it will always be available for when you need it.

Lastpass uses security similar to cryptocurrencies to protect it from hackers. And all of your passwords and stored information are made unreadable so even if Lastpass was hacked, your information is safe.

How I Invested in Altcoins from Bitcoin

Discover how to invest in altcoins from bitcoin in this visual walkthrough.

In my earlier walkthrough entitled, How I Bought My First Cryptocurrency, I showed you how to open an account with Coinbase and buy your first crypto. Afterwards, I knew I wanted to diversify my investment into other alternatives to bitcoin, also known as “altcoins”.

Now that we both have bitcoin, I’m going to show you how I created an account with another exchange and bought altcoins. An exchange is a place where something of value can be traded. One of the purposes of an exchange is to ensure fair trades are conducted.

NOTE: You must have bitcoin to continue. Additionally, just because I liked these exchanges, does not mean they will be the easiest or safest for you.

Please note, nothing published by me or Decryptionary constitutes an investment recommendation, nor should any data or content published by Decryptionary be relied upon for any investment activities. Just because this was the easiest way for me to invest in altcoins, does not mean it is best for you. For more info, please refer to the Terms and Conditions.

My Process

Selecting Another Exchange Account

The three exchanges I recommend are:

  • https://bittrex.com/ – My preferred exchange, I started with this.
    • With Bittrex, you can trade 261 different pairs of cryptocurrencies for example, Bitcoin with Ethereum.
    • Bittrex will help you with most of your altcoin needs.
    • Bittrex is based out of Las Vegas, Nevada.
  • https://poloniex.com/ – Decent for beginners, I started with this.
    • With Poloniex, you can trade 102 different pairs of cryptocurrencies for example, Bitcoin with Ethereum.
    • Poloniex is based out of Wilmington, Delaware.
  • https://www.binance.com/ – Better for advanced users or adventurers.
    • With Binance you can trade 98 different pairs of cryptocurrencies for example, Bitcoin with Ethereum.
    • Binance allows you to exchange some coins that Bittrex doesn’t offer.
    • Binance is based out of Hong Kong.

There are many other exchanges such as https://www.gdax.com/ and https://www.kraken.com/. If you have a preference for a different exchange, please feel free to use it. I prefer Bittrex, so I will show you how to set up an account with them.

Here’s a simple way to find the exchange trading your cryptocurrency:

  1. Go to CoinMarketCap.com
  2. Click on or find the cryptocurrency you like.
  3. Click on the [Markets] tab.
  4. The left hand column tells you which exchanges it is being traded at.

Setting Up Your Bittrex Account

1. At the top right, click on [Login].

2. On this next page, click on the blue [Sign Up] button at the bottom of the login form.

3. Fill in your email, password and then confirm your password. Agree to their terms of service and hit [Sign Up].

For security reasons please do the following:

  • Create a new email account with Protonmail. Bittrex doesn’t let you change your email address after using it to create an account.
  • Use a long password (8+ characters) with capitalized and uncapitalized letters, numbers and symbols.
  • Use a password management tool like Lastpass.
  • Always make sure the website you are using starts with “https” as opposed to “http”. The “s” means it has extra security to prevent hackers from stealing your information.
  • Store your cryptocurrency in a wallet, not an exchange. Exchanges have a history of getting hacked with customers losing their money and no way of getting it back.

For more information, check out this article. It shows you the 8 Steps to Protecting Your Cryptocurrency.

4. It’s probably going to have you go through a program to prove you are a human. In my case, I had to select all of the images that had a road sign in them. When you’re done, click on [Next].

5. Now it will tell you to check your email for further instructions.

6. Once in your email, click on the verification link.

7. You’re now back on the Bittrex website with a verified email address. Your account is ready to go!

8. Please go ahead and login with your username and password.

9. The first thing Bittrex is going to ask you to do is verify your identity so you can withdraw up to 3 bitcoin worth of money from Bittrex to any other exchange. Details in the free PDF.

10. In my case, I had to do an enhanced verification because apparently they couldn’t verify my information. Details in the free PDF.

11. You are now ready to transfer your bitcoin from Coinbase into Bittrex. Details in the free PDF.

12. Once your bitcoin is in Bittrex, you can trade it for altcoins. Details in the complete PDF.

How I Bought My First Cryptocurrency

Discover how to buy cryptocurrency in 3 minutes or less.

Now that I’ve introduced you to cryptocurrency, and you’re familiar with the potential of crypto, you may be interested in learning how to buy crypto. Like me, you may have heard about the multi-million dollar pizza bought with bitcoin.

I’ll tell you now, bitcoin’s price has skyrocketed so that a single coin may cost you multiple thousands of dollars. Fortunately, you can actually purchase a fraction of a bitcoin for only a few dollars.

The following is the simple process I took in buying my first cryptocurrency. If you’re interested in buying more than just bitcoin, please finish this walkthrough and then check out my next one, How I Invested in Altcoins from Bitcoin.

Please note, nothing published by me or Decryptionary constitutes an investment recommendation, nor should any data or content published by Decryptionary be relied upon for any investment activities. Just because this was the easiest way for me to buy my first cryptocurrency, does not mean it is best for you. For more information, please refer to the Terms and Conditions.

Showing you how I bought bitcoin with Coinbase

Probably the easiest way to buy bitcoin is from a friend who already has some. He or she can not only sell you some of their bitcoin, but they can also set you up properly.

If you don’t have a friend who can do this, the next easiest way is probably with a credit card at one of these websites.

Coinbase.com is a website where you can buy and sell 3 of the most popular cryptocurrencies: bitcoin, ethereum and litecoin.
When you create an account with that link, you can get $10 free, after buy/sell $100 of digital currency. Plus, they’ll give me $10 so I can buy bubble teas for my wife and I.

Coinmama.com is a Slovakia-based company where you can buy and sell 2 cryptocurrencies: bitcoin and ethereum. I’ve heard it is popular with Europeans.
When you create an account with that link, Coinmama will give me a commission on whatever you buy.

 

Bitpanda.com is an Austrian-based company where you can buy and sell 4 cryptocurrencies: Bitcoin, Ethereum, Litecoin and Dash. They claim to be the most popular exchange in Europe.
When you create an account with that link, Bitpanda will give me a commission on whatever you buy.

1. Enter your email and click on [Get Started].

2. Enter your name, a password, select the state you live in, check the box to confirm you are a person, check the box to confirm over 18 and agree to their terms and click on [Create Account].

3. It will ask you to go to your email and click on a verification link sent to you. If you can’t find your verification email, refresh your mailbox and check your spam folder.

4. When you get the email, click on the [Verify Email Address] button.

5. You are now on the Coinbase website and a green banner at the top will tell you your email has been verified. Enter your email address and password.

6. You are now in your new account.

Introduction to Cryptocurrency

New to crypto and want an introduction? You’ve come to the right place!

Cryptocurrencies have been attracting a lot of interest lately. You can regularly find them being mentioned on the news, from a relative, or on Netflix. Decryptionary is a dictionary covering the subject of cryptocurrency and its technology. I created Decryptionary as a point of entry for those who know very little about the subject.

Let’s start with the key terms:

What is cryptocurrency?

Cryptocurrency is an electronic money created with technology controlling its creation and protecting transactions, while hiding the identities of its users.

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. The digital transaction recordings are known as a “ledger” and this ledger is publicly available to anyone. With this public ledger, transactions become efficient, permanent, secure and transparent.

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”.

The first cryptocurrency was bitcoin.

What is bitcoin?

Bitcoin is the first digital cash created in 2009. It was made by an unknown person or group who went by the name, Satoshi Nakamoto.

Bitcoin is unique because it does not rely on government/bank created money. In addition, transactions occur directly between pseudonymous people (their real names are not known), meaning there are no banks or middlemen.

Each transaction is recorded on a digital record kept by many people across the world known as the “blockchain”. The data on the blockchain is publicly available and stored on many computers. Because there are so many copies being simultaneously maintained, the transaction and banking data is very safe and virtually impossible to manipulate.

Individuals protect their bitcoins using their digital wallet. A wallet is software that can only be accessed by using a key, which is a long string of letters and numbers.

Bitcoin’s price has risen into the thousands of dollars, but you can still own bitcoin by purchasing a fraction of it for dollars.

What is blockchain?

Blockchain is technology for creating permanent, secure digital recordings that don’t rely on any single person or group. Blockchains can record any information, though the first example was created to record bitcoin transactions.

Imagine the blockchain as a book of records. Each page in that book, is a block, and can record anything. Blocks are created one after the other, chained to each other creating what we know as the blockchain.

Multiple blockchain records are maintained simultaneously by many of unrelated individuals and their computers, making it cloud storage on steroids. Updates are seen immediately and manipulation is extremely difficult/impossible. This positive quality known of many people keeping their own copies of the blockchain is known as “distributed”.

There are hundreds of blockchains created by many groups to records all sorts of information including art, medical records, computer information and much more.

But if a blockchain is not distributed among many individuals and instead run by one government, organization, group or person, than it is not at a blockchain at all. A centralized system like that is simply a database.

What is a smart contract?

A smart contract mixes blockchain technology with contracts to make a more efficient and affordable system of doing business.

In a smart contract, two people doing business agree to exchange money for something else. if the requirements set by both parties of the contract are met on a date, it activates, delivering what was purchased. If the requirements are not met, the contract deactivates and returns whatever it was storing.

For example, Alice wants 1 bitcoin from Bob and Bob wants $5,000. Both Bob and Alice agree that on January 1, 2018, both the bitcoin and cash will be deposited to the accounts linked with the smart contract.

On January 1st, the contract looks to see if both people fulfilled their obligations. If so, it will release the payment and bitcoin to their new owners. If not, the bitcoin and money are returned to their original owners.

Because the contract is publicly available and unalterable, it is very easy to keep both Bob and Alice responsible for their end of the deal. If anyone somehow violates the agreement, the proof of what they should have done is easily obtained.

What is mining?

Mining is the computer process of recording and verifying information on the digital record known as the blockchain. Because mining requires computer power, people do this work in return for money. Each computer that fulfills this process can earn a reward in digital money and sometimes brand new, virgin coins.

To keep the blockchain network running smoothly, only one block can be created at a time. There are several different ways to do this:

  1. The most common is known as proof of work and it required computers work hard at solving a math problem. The first computer to solve this problem would discover a new block and could record information on the blockchain. This earned them a reward in brand new digital money plus fees paid for each transaction.
  2. The next mining technique was called proof of stake. With this system, people who represent a large ownership of coins are selected by the software to create new blocks. Competing people are selected on a lottery-system based on chance. With proof of stake, no new coins are created. Instead fees for verifying and recording transactions are collected.

With over 1,000 cryptocurrencies and many more being created each month, new ways of mining are being explored and discovered.