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Greetings,
Dear members of LeoFinance community, My name is Albert and this is my first publication in the community, today I'll be sharing my knowledge on major concepts in blockchain and Cryptocurrencies, I look forward to posting here more often. Without further delay... Let's get started..⭐
Since the invention of blockchain technology, it's more possible to utilize and create decentralized systems of applications and with the help of cryptocurrencies, it became an ecosystem of Decentralization. The blockchain technology is complex and can be difficult for some people to understand it. Knowing this I decided to write an article that will summarize and explain these blockchain terms and concepts. Below are some major terms founds in blockchain and Cryptocurrencies.
- Blockchain
A blockchain is a Technology that constructs series of blocks in a digital ledger and used to verify transactions of cryptocurrencies. The blockchain is the foundation for every decentralized platforms out there. There are two main types of Blockchain, the first being the public Blockchain where transaction are openly made and have no Central authority controlling it, this is the blockchain that our Dear Hive is made of. The second being a Private blockchain where transactions are carried out privately and a central authority is controlling it.
- Blocks
A block is what makes up a blockchain, every blocks has a historical database of transactions that is carried out on a cryptocurrencies and it creates a new block when it's full. What makes the blockchain tamper-proof is due to the blocks, Evey blocks has reoccurring history of transactions and it makes it hard or rather impossible for someone to alter thousands of blocks.
- DApps
Dapps is an acronym for Decentralized Application, it's an app that uses the mechanism of blockchain and Cryptocurrencies to run. There are several types not Dapps out there and all of them must run on a particular type of blockchain. For example, Hive.blog is a decentralized social media platform that runs on the Hive blockchain. Decentralized Application can range from games, Exchanges and Video Streaming sites.
- DeFi
DeFi is an acronym for Decentralized Finance. DeFi is the leading organizations in the decentralized world. DeFi are used to trade Cryptocurrencies and also have a operates on a certain blockchain that gives it a Decentralization name. Popular DeFi projects are exchanges that enables buying and selling of cryptocurrencies to traders. DeFi eliminates the need of a middle man and oppose the traditional banking system which is mostly Centralized.
- Fiat
Fiat is a term used for naming traditional currencies in a crypto/decentralized exchange. Fiat are the government issued currencies that a country uses, example are U.S dollar or Chinese Yen. Fiat is used to grade the value of cryptocurrencies to the real time value. The major counterpoint to traditional fiat currencies is "Bitcoin".
- Altcoin
Altcoin is a term given to cryptocurrencies that isn't Bitcoin. Since bitcoin is the first ever cryptocurrencies to be released. It was greatly distinguished from other cryptocurrencies. Altcoin examples are, Hive, Ethereum, Shiba, Binance etc. Today there are thousands of Altcoins in the Crypto market.
- ICO
Ico is an acronym for Initial Coin Offering and it's a process where blockchain projects raise funds to support their virtual currency networks. ICOs skyrocketed in 2017 and 2018 constituted in a market frenzy. A lot of ICOs were schemes of Pump and Dump scams and this led to the instability of some cryptocurrencies in the market that year.
- Satoshi
Satoshi has two references, the first being the anonymous Founder of Bitcoin name Satoshi Nakomoto who mysterious vanished after his creation. This made Bitcoin to be decentralized and managed collectively. The second reference means a unit of measure that equals to .0001 bitcoin.
- Mining
This refers to the creation of new cryptocurrencies that'll add to the circulation in the market. Bitcoin uses Proof Of Work (PoW) mechanism where computers solve sophisticated puzzles to mine it. Hive.blog uses Proof Of Brain (PoB) where users mine cryptocurrencies based on their contribution for providing quality contents.
- Hash Rate
This is the measure of computing and algorithmic processing power used for mining cryptocurrencies. Only powerful and sophisticated computers are allowed to mine cryptocurrencies.
- Bitcoin Maximalist
A Bitcoin maximalist is a person that believes Bitcoin is the only cryptocurrency with value and supports other cryptocurrencies. Since bitcoin was the first and highest ranking in the Crypto market, People started believing that only bitcoin is keeping other cryptocurrencies from loosing their value. This phenomenon is somewhat true because if there's a dump in value of Bitcoin, other cryptocurrencies will follow.
I've come to the end of my publication and I can say it was wonderful writing it. I hope to know more about this community and the members in it so I'll be of use to the Hive ecosystem. Thanks for reading...⭐
