Crypto
Andrea Alms Video: Money In Motion 134 - What Is It?... "Crypto" Part 1
December 2024 - Private Equity
TRANSCRIPT
Hello, my name is Andrea Alms. I'm a technology investor and financial manager and this is your money in motion. Thank you, viewers for another popular request. What is it? Cryptocurrency, or crypto, is a digital currency that uses cryptography to enable secure transactions without a central bank or government. Cryptocurrencies are traded on a decentralized network of computers called a blockchain, which records and verifies transactions.
Here are some of the key characteristics of cryptocurrencies. No central authority meaning cryptocurrencies are decentralized, meaning they are not controlled by a central bank or government. No legal tender. Cryptocurrencies are not legal tender, so there's no legal obligation for them to be accepted. No intrinsic value. Cryptocurrencies are not backed by real estate or securities, and their value is based on what people are willing to pay for them.
Uses blockchain technology. Cryptocurrencies are based on blockchain technologies, which records verifies transactions across a network of computers. Uses public and private keys. Each user has a public key and a private key. The public key is used to send money to user, while the private key is used to access a user's own crypto. It uses time stamping schemes. Cryptocurrency uses time template schemes to prove the validity of the transaction.
What are the different types of cryptocurrencies? There are more than 10,000 cryptocurrencies in 2022. The crypto coin is native to a network. There is only one coin per network. The crypto token is built under a crypto coins network, which can be an infinite number of tokens per network. The four types of blockchains are private, public, consortium, and permissions.
Bitcoin and Ethereum are the world's most popular crypto coins. Each CRC 20 is a standard token type issued by Ethereum network. Stablecoin pegs their price to a reference asset, such as a fiat currency or a commodity. Blockchain is the underlying technology which allows cryptocurrencies to exist. As you can see from this diagram, crypto currencies can be divided and subdivided into numerous categories.
There is so much to digest here on the next episode, we'll take a look. A closer look at this cryptocurrency ecosystem. Thank you. This is your money. Your money in motion.