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--- crypto:introduction [2025/12/02 20:52] – deathrequiem
+++ crypto:introduction [2025/12/27 07:24] (current) – deathrequiem
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-**##What is Cryptocurrency?##**
+**###What is Cryptocurrency?###**
-Crypto is a form of **digital currency** that operates without the need for banks or governments. First introduced as Bitcoin (BTC) in 2008 by the mysterious Satoshi Nakamoto, Bitcoin runs on a decentralized network and was launched as open-source software in 2009. Since then, the project has been forked and thousands of alternate Cryptocurrencies have been created and released, some using the same algorithm as Bitcoin, and others on completely different algorithms and networks.
+Cryptocurrency, or simply "Crypto", is a form of **digital currency** that operates without the need for banks or governments. First introduced as Bitcoin (BTC) in 2008 by the mysterious Satoshi Nakamoto, Bitcoin runs on a decentralized network and was launched as open-source software in 2009. Since then, the project has been forked and thousands of alternate Cryptocurrencies, or "Alt Coins/Tokens", have been created and released.
+**###What is a Crypto Decentralized Network?###**
+A crypto decentralized network is a peer-to-peer system where control and data are distributed across many computers (nodes) instead of being managed by a single central authority, like a bank or government. Transactions are verified through a consensus mechanism, and each node holds a copy of the blockchain, making the network resilient, transparent, and secure because no single entity can control or manipulate it.
+  * **Decentralization**: No single entity controls the network, decisions are made collectively, and the system is more resistant to censorship.
+  *
+  * **Transparency**: All transactions are recorded on a public ledger, which is visible to all participants.
+  *
+  * **Security**: The distributed nature and consensus mechanisms make the network very secure, as altering data would require changing the majority of the nodes' copies simultaneously
+**###What is a blockchain consensus mechanism?###**
-**What is a blockchain consensus mechanism?**
 A blockchain consensus mechanism is a type of automated system that aims to accomplish two main objectives.
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 Satoshi Nakamoto, the creator of Bitcoin, was the first to recognize that consensus mechanisms could also double up as an efficient system for deterring bad actors from attempting to take over the network through a majority attack (gaining control of more than 50% of a network.) This was a revolutionary innovation and one that helped cement the Bitcoin protocol as the first globally viable decentralized cryptocurrency.
-**What are the main consensus mechanisms?**
+**###What are the main consensus mechanisms?###**
 There are many different methods employed by various blockchains to achieve consensus in today’s crypto industry.
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 However, the two most popular are known as the proof-of-work (PoW) and the proof-of-stake (PoS) consensus mechanisms.
-Proof-of-work (PoW)
+  * **Proof-of-work (PoW)**
 Proof-of-work is the consensus mechanism used by bitcoin and a wide range of other cryptocurrencies.
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 In terms of providing security, as more miners join the network and the sophistication of equipment rises, the cost of attacking the Bitcoin blockchain rises exponentially. This is because a perpetrator would have to source an extremely large amount of computational power to gain a 51% majority over the rest of the network. Even then, there would be no guarantee they’d win the mining competition every ten minutes to successfully establish an invalid chain of new blocks.
-Proof-of-stake (PoS)
+  * **Proof-of-stake (PoS)**
 Proof-of-stake is a relatively new type of consensus mechanism pioneered by Sunny King and Scott Nadal in 2012. Like proof-of-work, PoS fulfills the same key objectives of a consensus mechanism but in a uniquely different way.
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-**What is a Cryptocurrency Algorithm?**
+**###What is a Cryptocurrency Algorithm?###**
 A cryptographic algorithm is a set of mathematical instructions or procedures used to encrypt and decrypt data, making it unreadable to unauthorized users. By using a cryptographic key, it transforms readable data (plaintext) into an unreadable format (ciphertext) and back again, and is fundamental to secure communication and data protection.
-**What is a Crypto Blockchain?**
+**###What is a Crypto Blockchain?###**
 A crypto blockchain is a decentralized, digital ledger that securely and transparently records transactions, forming the technology that underpins cryptocurrencies. It consists of a growing chain of "blocks," where each block contains a list of transactions and is linked to the previous one using cryptography. This chain is distributed across a network of computers, making it nearly impossible to alter or tamper with past records once they are verified and added.
-**Why is a Blockchain used for Crypto?**
+**###Why is a Blockchain used for Crypto?###**
 It provides a secure and transparent way to record transactions without a central authority like a bank. It allows for the creation of a digital currency that can be traded safely and is resistant to counterfeiting. The decentralized nature eliminates the need for intermediaries, which can lead to faster and cheaper transactions.