Crypto
Andrea Alms Video: Money In Motion 137 - What Is It... Crypto Part 4 Terminology
December 2024 - Crypto
TRANSCRIPT
Hello, my name is Andrea Alms. I'm technology investor and financial manager. And this is your money in motion. Welcome to our series on cryptocurrency. As we review from last time, crypto is a digital currency that uses cryptography to enable secure transactions. Without a bank. Just from last time, here are some key characteristics. No central authority or government. So on.
Bottom line no guardrails and risky. On the last episode we introduced this organizational chart. There is much confusion around terms and definitions. Today we focus on terminology as a recap. Crypto coin A crypto coin is native to a blockchain. There's only one coin per blockchain network. Crypto token is a software technology software application overlaid on the crypto coins.
Before we dive into this ecosystem, let's check out the backstory. History and crypto will help us understand some of the language and culture on the evolution of cryptocurrency often may be lost over time. Is the history pre 2000. Prior to the release of Bitcoin, there were a number of digital cash technologies started with the issuer based cash protocols a David Shams and Stefan Brandes.
The idea that solutions to computational puzzles could have value was first proposed by cryptographers since Theodore Amonte Niemann in 1992. Then, in 1997, the idea was rediscovered by Adam Back, who developed a hash cache, a proof of work. A proof of work is a solution for spam control, along with others developed proof of work to protect against attacks software attacks, that is.
But what we learn from history is that computational puzzle solving does have value. Essentially, this puzzle solving work is a coin in the history of proof of work was a way to stop spam and attacks on this puzzle solving work. Or now we know crypto coin. Thank you. This is your money. Your money in motion.