Three Minute Cryptos – Crypto Defined series Hi there, I’m James Preston, a journalist and
crypto enthusiast much like yourself! If you’ve clicked on this video chances are you’re wanting
more information about what can at times be a very complex world. It’s fair to say
that cryptocurrency really is a world of its own, that of course includes it’s own unique language,
and in this segment, as part of our Crypto Defined series
I’ll break down a number of terms and what they mean in an easy to understand way.
LET’S START WITH ALTCOIN
An altcoin is any cryptocurrency which isn’t Bitcoin. As Bitcoin was the first digital
currency to be invented, every crypto invented after Bitcoin is referred to as an altcoin.
APEING
Apeing is when a crypto investor buys a token shortly after the launch without conducting
thorough research. While this practice is done to get an early bite on the crypto’s price,
it can be very risky to invest capital without knowing the basic origins of a
particular crypto asset as there are scams abound in the crypto space. [e]
NOW, HERE’S ONE you’re going to hear time and again: Blockchain Technology.
Blockchain technology is the basis of how cryptocurrency is created. It is essentially
a series of blocks holding digital information chained together. Amongst other things,
these chains provide the system’s security as if any piece of data on the chain is changed or
tampered with, it becomes immediately apparent to all the users of that particular blockchain.
LETS MOVE ON TO THE GRAND DADDY - Bitcoin
Everyone has heard of it but some might not be familiar with its significance or its
context in the wider crypto market. Bitcoin was the first cryptocurrency ever invented,
having been introduced in 2009 in a direct response to the global financial crisis of 2008
which saw an emerging distrust of the traditional financial system. BITCOIN WAS created in an
attempt to bring a digital, decentralised finance system to the people, where third parties like
banks and governmental agencies are left out of the picture. Bitcoin has the lion’s share
of the market currently but that gap is being closed by the next term on our list – Ethereum
ETHEREUM was the second blockchain created after Bitcoin. Its native cryptocurrency is the
Ether. One analogy is that if Ethereum is the car, Ether is the petrol needed to run the car.
While Ether remains the second-largest crypto in terms of market cap, it differs from Bitcoin
in that its Ethereum network allows its users to create applications and programs onto that system.
Many think blockchain systems like Ethereum actually have more inherent value than that
of Bitcoin due to the fact that people can build things on it. The difference which
allows this on Ethereum and not on Bitcoin is the next term on our list which is…
SMART CONTRACTS – smart contracts are programs stored onto a blockchain network
which runs when certain predetermined conditions are met.
In other words, these are self-executing contracts where the terms of agreement
between buyer and seller are written directly into the lines of computer code.
Smart contracts allow secure transactions and agreements to be carried out among disparate,
anonymous parties without the need for third party interference like a central authority,
legal system, or external enforcement mechanism.
AND FINALLY, LET’S BREAKDOWN WHITE PAPER
When referring to whitepaper in a crypto related context,
this simply is an online document explaining the purpose for a particular cryptocurrency project as
well as the technology behind that project. [n] Producing a whitepaper is a vital step required
for a crypto startup to be considered legitimate. By providing statistics, diagrams and key data
it helps investors understand how its business is different from rivals in the space.
More importantly it persuades investors to invest in the project by purchasing its cryptocurrency.
Investors who buy into the cryptocurrency haphazardly, without reading the whitepaper,
are involved in….that’s right: Apeing.
That’s all for our introduction to crypto-related terminology. If there’s a crypto term or concept
you’d like us to deconstruct for our next Crypto Defined
just let us know in the comments. And don’t forget to share, like and subsribe plus click
that bell icon. You can also get a whole stack of information from our website kalkinemedia.com
This has been James Preston, reporting for Kalkine. Bye for now.