• Wed. Jul 24th, 2024

The most important terms about encrypted digital currencies you should know

Bym Abdullah

Jul 1, 2020
Today, encrypted currencies have become a global phenomenon, modern times and the preoccupation of most people. While some of its terms are still opaque and purely technical and incomprehensible to most people, banks, governments and many companies are aware of their importance, as it would be very difficult to find an international bank, a large accounting firm, The government has not done a study on encrypted digital currencies, or published a scientific paper on the impact of this phenomenon.

The obsession with coded currencies, especially the currency of Betcuen, has led to speculation by experts that their collapse is even considered by some to be a mere bubble that must grow and expand before it explodes, as happened in the Internet bubble earlier this century. This article.
I will discuss in this article the most important terms used in encrypted currencies, and I will try to explain and simplify it to be as easy to understand and clear as possible. After reading it, you will learn more about her world and become able to explain it to other people.
Encrypted digital currency – Cryptocurrency
Is a form of digital money intended to obtain a high level of security; to protect the virtual transactions based on them, and hide the identity of the sender and recipient, and also control the establishment of new units of currency, where difficult to counterfeit. For this, the encrypted currency has important features such as: decentralized authority (ie without a controlling broker such as Pay Pal), and a general / Jhhory account record where the default transactions are recorded in an integrated form called a series of blocks. Transactions between users are connected to a peer-to-peer network without intermediary through the use of encryption.
Petcoin – Bitcoin
Is the first and most famous digital currency encrypted and is the gold standard in the world of encrypted currencies, developed by Satoshi Nakamoto in 2008, and can be compared with other currencies such as the dollar or the euro but with several differences, most notably that this currency is fully electronic and traded online Only without any physical presence. Is the first decentralized digital currency, a system that operates without a central repository or one manager, meaning that no central regulatory body stands behind it. Open source currency, where it is possible to reproduce and modify it and then launch a new currency.
Block Blocks – Blockchain
Is a secure and inexpensive data storage and transfer technology that is a general record of all encrypted digital currency transactions in chronological order. The string is shared between all users. The string is used to ensure the continuity of digital transactions, to ensure that conversions are correct, and to prevent double spending. Since the string contains all the actions taken, it can determine the balance of each address on the network. This concept is called (describing the series of the inter-cluster bonding), where each block contains the margin of the mass that precedes it, and follows the order to reach the first block called the “configuration block”.
Mining – Mining
Is to use the ability of the computer and the Internet to solve mathematical equations and document transactions to extract encrypted digital currency. The process of mining in the sense of the most correct is the process of engaging in the documentation of transactions and recorded in the series of blocks using the computer and the Internet, so that these transactions are grouped into one block to solve a puzzle or complex mathematical equation, and reward the first person who solve the equation either through wages transactions, During the acquisition of new units of the currency listed in the series of blocks involved. The encrypted currency is mined using an algorithm called Hashing Algorithm.
Satoshi Nakamoto – Satoshi Nakamoto
Is the name of the founder and inventor of the mint currency. There are many hypotheses about the identity of this character, since it is uncertain whether this name is the real name of the inventor, or just a pseudonym used only to announce the new currency. Also, it is not known whether the name is for a man or a woman or a group of people. It has often been announced that the true identity of the inventor has been revealed, but these ads have not been confirmed and the real character remains unknown to date. Satoshi Nakamoto is believed to have nearly one million homes.
Public Key Encryption
Is a type of encryption where the user is given a pair of encryption keys, public key or public key and private key. The private key remains secret to the user, and the declared key can be distributed to everyone. The two keys are associated with a calculation (different according to the algorithm used), and one can not be accessed by the other. This system is used to encrypt messages using the declared key, which can only be decrypted by the corresponding secret key. It is also used in electronic signature. The message signed with the sender’s secret key can be recognized by anyone who knows the public key of the sender, .
Wallet
The wallet contains the basic information for executing transactions in encrypted currency, and stores the public and private keys that can be used to receive or exchange this currency. The wallet can contain several pairs of public and private keys, and the same encrypted currency is not stored in the wallet. There are several types of portfolios, such as: a software portfolio that stores keys on a user’s computer, and Internet wallets, which are portfolios provided by intermediaries such as banks, or can be physical or hardware portfolios, which are usually a small storage device Encryption keys, these are considered the safest portfolios.
Peer to Peer / P2P
Is the ability of the user to exchange data, or to participate in the transfer of files or digital assets directly with other users on the network without the need to be done through an intermediary, or supervision by a central authority. One of the most important applications that rely on the peer-to-peer network are programs to share files and songs online movies Bit BitTorrent, or encrypted digital currency platforms such as Betcuen.
Mandatory Cash – Fiat Money
Is a legal currency of nominal value with a government guarantee, which is declared by the government to be an alternative legal currency for financial goods (such as gold) to be traded. This currency can be traded with other foreign currencies in the foreign exchange market, so this currency has value for other currencies.
Legal Tender A legal tender is a medium or means of payment that is legally recognized in a country and is considered a legal currency according to the criteria set forth in its laws without specifying the quantity. In other words, the law considered that current transactions between individuals are not limited to the quantities and categories they choose from this currency as long as they have acquired the legal status of the issue. Paper and metal currency is one of the most common types of currency used in most countries.
Alternative encrypted currency – AltCoin
Is any digitized digital currency other than the Betquin coin, and sometimes the etherium as well. There are thousands of alternative currencies at present, and the most important differences between the Betcairn and these alternative currencies are: Since Bettkin is the currency of the most widespread and widespread, the hardest mining and the most expensive, while alternative currencies less famous and widespread. Therefore, they can usually be obtained in an easier and cheaper way, and their price can be more stable than the price of a volatile price, and many of these currencies were created to avoid problems in a configuration system that was impossible to predict at the beginning of dealing with them.
Node – Node
A block chain system is a large and complex network of identical databases called nodes. These nodes contain all the previous transactions that took place in this series. This contract is a computer based on the network that organizes and coordinates transactions between the two metals, and those who deal with the encrypted currency.
Fork – Fork
A fork or fork is a condition that occurs when the cluster chain is split into two separate strings temporarily or permanently. Natural excretions occur during mining, when two sequences follow the same rules, and have the same cumulative proof of work, both of which are considered valid. It can also occur as a result of using two different sets of rules in an attempt to obtain the same string of blocks, using the encoded currency to add new features to the block chain, to counter the effects of a hacking attempt, or to eliminate a bug that has a serious impact on the cluster. There are two types of excretions: hard, soft, and soft.
Proof of Work – (Proof of Work PoW)
Is to verify the validity of the work that occurred during the mining, and to prove that it is true through the use of computing power of the computer. Tracking the currency of the Betquin and many alternative currencies This method of consensus and consensus to verify the validity of the series of blocks. For example, users can decide to switch to alternative currency mining if the reward they receive is higher. As currency mining increases and lots of them are sold, new mining of the same currency becomes more difficult With time.
Proof of Stake PoS
An alternative method for validating a transaction or block, where the focus is on the amount of the share (currency) and the age of the quota when selecting the validator. This share can be considered a bank deposit. The longer the age and the commitment of the owner, in addition to other factors, the greater the opportunity to verify the validity of the block and get the transaction fees. Therefore, if you move your share from one address (or portfolio) to another, a new age for the quota will be reset. This allows the construction of a reliable network between users with authenticators, in this way is not “mining” is important, but “certification” is the most important to address and add a block to the chain, the most important features of the method: fast certification, The more loyal the faithful, the greater their share and commitment for a longer period of time, the greater chance of ratification

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