FAQ’S
Frequently Asked Questions
What is Virtual Currency ?
Cryptocurrencies are digital or virtual tokens that use cryptography to secure their transactions and to control the creation of new units. Cryptocurrencies are decentralized, meaning they are not subject to government or financial institution control. Bitcoin, the first and most well-known cryptocurrency, was created in 2009. Cryptocurrencies are often traded on decentralized exchanges and can also be used to purchase goods and services.
How do Cryptocurrencies Work?
Cryptocurrencies use decentralized technology to let users make secure payments and store money without the need for a bank or other financial institution. Cryptocurrencies are digital or virtual tokens that use cryptography to secure their transactions, to control the creation of new units, and to verify the transfer of assets. Cryptocurrencies are decentralized, meaning they are not subject to government or financial institution control. Bitcoin, the first and most well-known cryptocurrency, was created in 2009. Cryptocurrencies are often traded on decentralized exchanges and can also be used to purchase goods and services.
What is a Blockchain?
A blockchain is a digital ledger of all cryptocurrency transactions. It is constantly growing as “completed” blocks are added to it with a new set of recordings. Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data. Bitcoin nodes use the block chain to differentiate legitimate Bitcoin transactions from attempts to re-spend coins that have already been spent elsewhere.
What is Ethereum ?
Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of fraud or third party interference. Ethereum is used to build decentralized applications (dapps) on its platform. Ether, the cryptocurrency used on the Ethereum network, is mined through a proof of work consensus algorithm (Ethash).
What is an ERC20 Token ?
ERC20 is a technical standard used for smart contracts on the Ethereum blockchain for implementing tokens. Tokens that comply with the ERC20 standard can be traded on decentralized exchanges and can be used to purchase goods and services.
Bitcoin F.A.Q
Test your knowledge on bitcoin.
What is Bitcoin?
Bitcoin is a decentralized cryptocurrency that uses peer-to-peer technology to facilitate instant payments. Bitcoin transactions are verified by network nodes through cryptography and recorded in a public distributed ledger called a blockchain. Bitcoin was invented by an unknown person or group of people using the name Satoshi Nakamoto and released as open-source software in 2009.
Who created Bitcoin?
Bitcoin was created by Satoshi Nakamoto, an anonymous person or group of people on January 3, 2009
Who controls the Bitcoin network?
The Bitcoin network is controlled by all of the miners who are mining Bitcoin.
(What is mining? Mining is how new Bitcoin are created. Miners are rewarded with cryptocurrency for verifying and committing transactions to the blockchain. Bitcoin miners are rewarded based on their share of work done, rather than their share of the total number of blocks mined)
How does Bitcoin work?
Bitcoin is a decentralized cryptocurrency that uses blockchain technology to enable peer-to-peer transactions. Bitcoin transactions are verified by network nodes through cryptography and recorded in a public distributed ledger called a blockchain. Bitcoin is unique in that there are a finite number of them: 21 million.
How does one acquire bitcoins?
Bitcoins can be bought and sold on exchanges or used to purchase goods and services. Cryptocurrencies can be bought with fiat currency (e.g. USD, EUR, GBP) or with other cryptocurrencies.
