Intro to Crypto
What problems do cryptocurrency address?
Cryptocurrencies combat inflation by creating a finite number of Coins on a fixed schedule. Not tied to a country of origin, they hold and provide universal value and are able to be instantly transferred between peers worldwide, saving time and money by cutting out the middlemen (e.g., banks).
What is blockchain and why is it important to cryptocurrency?
Blockchain is a decentralized, secured database technology. It refers to literal chains of data entered on a digital ledger as linked blocks. Cryptocurrencies are built using blockchain as their underlying database, allowing operations to be decentralized and facilitating instant and secured transactions. Basically, blockchain keeps crypto safe and enables transactions with anyone, anywhere, in real time.
What is the Ethereum blockchain?
The Ethereum blockchain refers to an open-source decentralized platform that stores transaction data as well as the smart contract code and state; it enables decentralized applications (also known as DApps) to be built on top of the Ethereum blockchain. Some examples of DApps include Uniswap, MakerDAO, and Cryptopunks.
What are sidechains?
Sidechains are independent blockchains, such as the Ethereum blockchain, that operate in parallel and are designed to be compatible with their mainchain. Sidechains can operate independent of the mainchain with their own transactions, security, and governance rules. Because sidechains are designed to be compatible with their mainchain, transactions and movement between sidechain and mainchain are also possible.
What are social tokens?
Social tokens are a form of cryptocurrency that represents a brand, individual, or community. The exact utility of a social token can vary depending on the network and/or the creator that it represents.