CHAINLEDGE.ORG
Chainledge.org Crypto Currency Research Site.
Chainledge.org is an educational and informational site focused on cryptocurrency and Blockchain Technology.
What is Chainledge.org ?
NOTICE: We do not endorse or advise on securities or cryptocurrency, the purpose of the site is to educate the public on technology and terminology that are associated with Blockchain and cryptocurrency.
BlockChain - what is it?
BlockChain Technology is the future of all accounting, auditing, authentication, verification and other emerging technologies that deal with identification, tracking and security.
CryptoCurrency- what is it?
Crypto Currency is probably the most well known application of the blockchain at present.
BlockChain Technology is the future of all accounting, auditing, authentication, verification and other emerging technologies that deal with identification, tracking and security.
CryptoCurrency- what is it?
Crypto Currency is probably the most well known application of the blockchain at present.
What is a block ?
The block is sort of like a collection of transactions, think of an apple tree and a bushel basket, think of each of those apples as a single transaction and the basket that you put the apples in as the block, suppose you know each basket(block) holds 100 apples (transactions), once it's full, you have a worker(miner) to verify there are exactly 100 in it before it can be loaded onto the truck to be delivered to the grocery store.
They place a unique bar code number on the basket as well as each apple, their tracking system will never allow that number to ever be assigned to any other future apple or basket and the basket cannot be re-used once delivered to the store that purchases the apples.
To enure the worker has not miscounted or re-used a barcode, you add two additional workers(miners) to ensure there are 100 apples and 100 unique barcodes, once they all agree they sign a document and put the inventory total on the sheet with the bar codes onto a clipboard and stamp it with the name of the farm the apples came from, the basket (block) can be loaded onto the truck.
Once it is delivered to the store, they will then obtain a signature of who received the basket of apples.
This is just a simple scenario to sort of give an idea of what a block is, the main thing about a crypto currency block, is that the transaction should only be placed on the ledger as a unique identifier that can never be used again.
Think of the stamped clipboard as the Ledger except that the used baskets will never be re-used and the barcode will never be re-used, but you can always track the apple to the store that purchased it as well as sold it.
The block is sort of like a collection of transactions, think of an apple tree and a bushel basket, think of each of those apples as a single transaction and the basket that you put the apples in as the block, suppose you know each basket(block) holds 100 apples (transactions), once it's full, you have a worker(miner) to verify there are exactly 100 in it before it can be loaded onto the truck to be delivered to the grocery store.
They place a unique bar code number on the basket as well as each apple, their tracking system will never allow that number to ever be assigned to any other future apple or basket and the basket cannot be re-used once delivered to the store that purchases the apples.
To enure the worker has not miscounted or re-used a barcode, you add two additional workers(miners) to ensure there are 100 apples and 100 unique barcodes, once they all agree they sign a document and put the inventory total on the sheet with the bar codes onto a clipboard and stamp it with the name of the farm the apples came from, the basket (block) can be loaded onto the truck.
Once it is delivered to the store, they will then obtain a signature of who received the basket of apples.
This is just a simple scenario to sort of give an idea of what a block is, the main thing about a crypto currency block, is that the transaction should only be placed on the ledger as a unique identifier that can never be used again.
Think of the stamped clipboard as the Ledger except that the used baskets will never be re-used and the barcode will never be re-used, but you can always track the apple to the store that purchased it as well as sold it.
Miner - How is cryptocurrency created?
Some cryptocurrency is created by the process of mining, a miner is most often a computer or computers using a processor or more commonly a GPU - Graphical Processing Unit, this device is generally found on medium to high end Video Cards.
Small to medium sized operations will configure a stacked bank of these GPU's with plenty of circulation and fans to mine, these stacked banks are usually referred to as a mining rig, it has become increasingly harder to mine some coins because of dwindling circulation, it is also very power intensive and consumes large amounts of power and energy.
The graphic below is a simple depiction of a mining rig.
What does the blockchain have to do with a miner?
The blockchain is the cornerstone of digital currency, it is a ledger or generally a permanent record of transactions, it can also contain contracts (smart contracts) which are coded agreements within the transaction that can be programmed to execute certain terms that were built into the contract.
How is the blockchain used ?
The blockchain is capable of verifying transactions and "voting" on transactions, in the case of some currencies like Bitcoin, concensus is needed on at least 3 verified votes or confirmations, this is done to not only confirm but to verify that a transaction cannot be sent more than once, there is a situation called a "double spend" which was posed a major problem in the early days of creating a crypto currency.
Generally a miner that can confirm more blocks are rewarded, so you can imagine this translates into, whoever has the most processing power would more than likely get higher rewards for confirmations!
Crypto Currency is a fungible (have value and can be converted) asset, some companies, individuals and corporations have created these coins, they are sometimes initially released or referred to as tokens.
Some cryptocurrency is mined, using a GPU, some cryptocurrency is initally created with a specific amount and never mined, this amount is set by the creator of the asset.
What determines the value?
If you have any exposure to the basics of economics, supply and demand usually drive the price of any commodity or asset.
The other factor would be the value of what the asset or technology that is embedded in the asset, including use case, security, speed if it is an asset based upon network functions and transactions.
Some cryptocurrency is mined, using a GPU, some cryptocurrency is initally created with a specific amount and never mined, this amount is set by the creator of the asset.
What determines the value?
If you have any exposure to the basics of economics, supply and demand usually drive the price of any commodity or asset.
The other factor would be the value of what the asset or technology that is embedded in the asset, including use case, security, speed if it is an asset based upon network functions and transactions.
What is this FINTECH?
Fintech is the application of blockchain, cryptocurrency and financial stakeholders, that can provide the way forward for the future of funding, financing as well as reaching a wider audience and population that were previously under represented in local and world economies.
What are the positive outcomes of FINTECH and what products and services will it provide?
- Loans - Loans against crypto and other assets
- Interest -Interest immediately or periodically accrued by certain assets
- Immediate access to liquidity - immediate funds availability
- Mobile payments - convenient management of personal assets on the go
- Mobile wallets -immediate availabity of funds from mobile devices and wallets
- Payment tracing - Trace/query the blockchain to audit any transaction
Instant cross border transactions - No more high fees or waiting to send money abroad - Automatic Contract Term execution - execute any contract term, payments, cancellations etc automatically via Smart Contract.
- Decentralized Financing - Defi
Useful Terminology
Coin Burn - A certain number of existing coins in circulation are reduced
Coin Burn - A certain number of existing coins in circulation are reduced
Air Drop - A coin or token is deposited or sent to coin holders either as reward or under certain pre-determined terms.
Token Swap- A Token is replaced either with a new one or new or upgraded capability.
These are some of the commonly found crypto currency tokens that are traded or used today.
XRP
