Bitcoin is a digital currency, also known as a cryptocurrency, that was created in 2009 by an unknown person or group of people using the pseudonym Satoshi Nakamoto. Transactions are made without middlemen – meaning, no banks! There are no transaction fees and no need to give your real name. More merchants are beginning to accept bitcoin you can buy webhosting services, pizza, beer or even manicures.

Bitcoin is decentralized and operates on a peer-to-peer network, meaning that it is not controlled by any government or financial institution. Instead, it relies on a network of users who verify and record transactions on a public ledger called the blockchain. This decentralization also means that there is no central point of failure, making it a more resilient and secure form of currency.

One of the key features of Bitcoin is that it is based on a limited supply. There can only ever be 21 million bitcoins in existence, with about 18.7 million currently in circulation. This scarcity is similar to physical commodities like gold and is intended to prevent inflation and ensure that the value of the currency remains stable over time.

Bitcoin transactions are fast and borderless, it can be sent to anyone, anywhere in the world, and typically takes just a few minutes to confirm. It is also relatively inexpensive to use, with transaction fees that are often much lower than those of traditional bank transfers.

Bitcoin’s value is determined by the market forces of supply and demand, and its price can be quite volatile. The price of one bitcoin reached an all-time high of nearly $65,000 USD (nearly $100 K NZD) in April 2021 and it fluctuates based on a number of factors, including investor sentiment, government regulations, and overall market conditions.

In conclusion, Bitcoin is a digital currency that operates on a decentralized, peer-to-peer network and is based on a limited supply. It allows for fast, borderless transactions and has the potential to disrupt traditional financial systems.

Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (dapps). It was created in 2013 by Vitalik Buterin, a programmer and cryptocurrency researcher.

Ethereum is different from Bitcoin, the first and most well-known cryptocurrency, in that it is designed to support more complex operations and applications. This is made possible by the use of a programming language called Solidity, which allows developers to create smart contracts on the Ethereum blockchain. These smart contracts can then be used to build decentralized applications, which can run without the need for a central authority or intermediary.

The main purpose of Ethereum is to provide a platform for the development of decentralized applications, which can range from digital identities and financial applications to gaming and prediction markets. It allows developers to create decentralized apps that can interact with other smart contracts and execute complex logic without the need for a central authority.

Ethereum also provides its own cryptocurrency, Ether (ETH), which can be used to pay for the computation power required to run decentralized applications and smart contracts. The Ether is also used as a form of digital currency for transactions on the Ethereum network, similar to how Bitcoin is used on the Bitcoin network. It is also the second largest cryptocurrency by market capitalization after Bitcoin.

Proof of work is a consensus algorithm used in blockchain networks to validate transactions and create new blocks. It works by requiring computers to solve complex mathematical problems, also known as “mining,” in order to validate transactions and create new blocks. The first computer to solve the problem gets to add the next block to the blockchain and is rewarded with cryptocurrency.

The energy consumption of proof of work has been a concern for many experts and environmentalists, as it requires a large number of computers to be constantly running, which in turn requires a lot of electricity. The energy consumption of some blockchain networks that use proof of work, such as Bitcoin, is equivalent to that of small countries.

To address this issue, several efforts have been made to make proof of work more environmentally friendly. One approach is to shift to proof of stake, a consensus algorithm that does not require mining and thus does not consume as much energy. Instead, it relies on validators who hold a certain amount of cryptocurrency to validate transactions and create new blocks.

Another approach is to use renewable energy sources, such as solar or wind power, to power the computers used in mining. Some projects are also exploring the use of more energy-efficient hardware and algorithms to reduce the energy consumption of mining. This includes the use of specialized mining hardware, such as Application Specific Integrated Circuit (ASIC) devices, which are more efficient than general-purpose computers.

Additionally, some projects are looking into other solutions such as the use of off-chain transactions, where the transactions are settled off the blockchain, reducing the need to mine new blocks, and thus reducing energy consumption.

In summary, Proof of Work is a consensus algorithm used in blockchain networks but due to its energy consumption, there are various efforts being made to make it more environmentally friendly, such as using proof of stake, using renewable energy sources and using more energy-efficient hardware and algorithms, and also off-chain transactions.

A crypto bridge is a mechanism that allows for the transfer of assets between different blockchain networks. This can be useful for users who want to transfer assets from one blockchain to another without having to go through a centralized exchange. A crypto bridge allows for the transfer of assets from one blockchain to another without the need for a third party intermediary.

The most common form of crypto bridge is the atomic swap, which allows for the exchange of assets between different blockchains in a trustless and decentralized manner. This is achieved through the use of smart contracts, which enable the automatic exchange of assets between different blockchains once certain conditions are met.

Another type of crypto bridge is the cross-chain transfer, which allows for the transfer of assets between different blockchains by means of a centralized intermediary. This intermediary is responsible for managing the transfer of assets between different blockchains and ensuring that the assets are securely transferred from one blockchain to another.

Crypto bridges can also be used to transfer assets between different blockchain networks with different consensus mechanisms. For example, a crypto bridge can be used to transfer assets from a proof of work blockchain to a proof of stake blockchain. This can be useful for users who want to take advantage of the different features and benefits offered by different blockchain networks.

In summary, crypto bridges allow for the transfer of assets between different blockchain networks, enabling users to move their assets from one blockchain to another without the need for a third party intermediary. This can be done through the use of atomic swaps, cross-chain transfers, or other mechanisms. Crypto bridges can also be used to transfer assets between different blockchain networks with different consensus mechanisms and thus can be useful for users who want to take advantage of the different features and benefits offered by different blockchain networks.

A crypto wallet is a digital wallet that is used to store, send, and receive digital currencies such as Bitcoin, Ethereum, and Litecoin. These wallets can be stored on a computer, mobile device, or even on a piece of paper. The most important feature of a crypto wallet is that it has a unique address, similar to a bank account number, that is used to send and receive digital currency.

There are several different types of crypto wallets, each with their own unique features and benefits. The most common types are software wallets, which are stored on a computer or mobile device, and hardware wallets, which are physical devices that are used to store digital currency offline.
Software wallets are the most convenient type of wallet, as they can be accessed from any device with an internet connection. They come in two forms: desktop wallets and mobile wallets. Desktop wallets are installed on a computer and mobile wallets are installed on a mobile device. Both types of software wallets can be secured with a password and can also be used to access other digital assets such as tokens.

Hardware wallets, also known as cold wallets, are physical devices that are used to store digital currency offline. These devices are typically small and portable, and they are often used to store large amounts of digital currency that are not intended for frequent use. Hardware wallets provide a high level of security, as they are not connected to the internet, and they are also resistant to hacking and other forms of cyber-attacks.

Another type of crypto wallets is paper wallets, which are simply a way to store your private key on a piece of paper. This private key is needed to access and move your crypto assets, and keeping it on a piece of paper ensures that it is not stored digitally anywhere and hence it is not vulnerable to hacking or phishing. These wallets are often used for long-term storage of digital currency and are considered to be one of the most secure options available.

In conclusion, crypto wallets are essential for anyone who wants to use or invest in digital currencies. Different types of wallets offer different features and benefits, and it is important to choose the right one based on your needs and goals. It’s always important to remember that regardless of the type of wallet you choose, it is important to keep your private keys safe and secure to ensure that your digital currency is protected.

A token contract on a blockchain is a program that runs on the blockchain and controls the creation and distribution of tokens. These tokens can represent anything, such as digital assets, utility, or even access to a service. Token contracts are implemented using smart contracts, which are self-executing contracts with the terms of the agreement written directly into code.

The token contract controls the supply of tokens, and can be used to create a fixed or variable supply. A fixed supply means that the total number of tokens is set at the time of creation and cannot be increased. A variable supply, on the other hand, allows for the issuance of new tokens, but typically this is done in a controlled manner, such as through a token sale or a mining process.

Once the tokens are created, they can be transferred or traded between users on the blockchain. The token contract ensures that the transfer of tokens is valid and that the total supply is not exceeded. Additionally, token contracts can include other features such as the ability to freeze or burn tokens, or set limits on the amount of tokens that can be held by a single address.

In summary, token contracts on a blockchain are smart contracts that control the creation, distribution and transfer of tokens. They allow for the creation of digital assets that can be traded and transferred on the blockchain, and provide a means for controlling the supply of these tokens, and allowing for additional features such as freezing or burning of tokens.

Centralized exchanges (CEX) are digital asset exchanges that are operated by a centralized organization, typically a company. Users deposit their assets onto the exchange and are able to trade them with other users of the exchange. The exchange acts as a middleman, matching buyers and sellers and taking a fee for each transaction. Examples of centralized exchanges include Binance, Coinbase, and Kraken.

Decentralized exchanges (DEX) are built on top of blockchain technology and are not controlled by any central authority. Instead, they use smart contracts to match buyers and sellers directly. Users retain control of their assets at all times and trade them directly with other users. This eliminates the need for a middleman and makes DEXs less vulnerable to hacking or other forms of theft. Examples of decentralized exchanges include Uniswap, SushiSwap, and 0x.

One of the key differences between CEX and DEX is the level of control that users have over their assets. On a CEX, users must deposit their assets into the exchange’s custody, which can make them vulnerable to hacking or other forms of theft. On a DEX, users always retain control of their assets, as they are stored in a digital wallet that the user controls. Additionally, DEXs are generally considered to be more censorship-resistant, as they are not controlled by any central authority.

Another difference between CEX and DEX is the user interface and trading experience. CEXs usually provide a more user-friendly interface, with features such as order books and charting tools. DEXs, on the other hand, can be more complex and require a deeper understanding of how they work. However, as the technology behind DEXs is still maturing, many of them have been making efforts to improve the user interface to make them more accessible to the average user.

An NFT, or non-fungible token, is a unique digital asset that represents ownership of a specific item, such as a digital artwork or collectible. NFTs are stored on a blockchain, which is a decentralized digital ledger that records transactions and ensures that the ownership of an NFT cannot be duplicated or altered.

Unlike traditional digital assets, such as a JPEG or MP4 file, NFTs cannot be exchanged for an identical copy. This is because NFTs are unique and irreplaceable, making them valuable to collectors and enthusiasts. NFTs can represent a wide range of digital items, including artwork, videos, music, and even tweets.

NFTs are created using smart contracts, which are self-executing contracts with the terms of the agreement written directly into code. When an NFT is created, it is recorded on the blockchain, making it a permanent and unchangeable record of ownership. This allows the owner of an NFT to prove that they own the original, one-of-a-kind digital asset.

One of the main use cases of NFTs is in the digital art world, where artists can sell their work as unique, one-of-a-kind items. This allows artists to monetize their work in a way that was not possible before the advent of blockchain technology. Additionally, because NFTs are stored on a blockchain, they can be bought and sold just like physical artworks, complete with authenticity and provenance.

Overall, NFTs are a revolutionary new way to prove ownership and authenticity of digital assets. They are stored on a blockchain, which ensures their uniqueness and authenticity. NFTs can be used for a wide range of digital items, including artwork, videos, music, and tweets, and they are already being used in the digital art world to monetize digital artworks.

Candles are a type of chart used in technical analysis to represent the price movement of a security or currency over a certain period of time. They are commonly used in the crypto trading community to visualize the price action of various cryptocurrencies.

Each candle on a chart represents a specific time period, such as one day or one hour, and the price movement during that period. The body of the candle represents the range between the opening and closing price during that period, while the wicks on the top and bottom of the candle represent the highest and lowest prices during that period. The color of the candle can also indicate whether the price went up or down during that period.

Candles are useful for traders because they provide a clear visual representation of the price action over a certain period of time. By studying the patterns formed by the candles, traders can identify trends and make predictions about future price movements. For example, a pattern of consecutive green candles may indicate an uptrend, while a pattern of consecutive red candles may indicate a downtrend.

In addition to being used for technical analysis, candles can also be used to study order flow and volume. For example, if a candle has a long wick on one side and a short body, it may indicate that there was a large amount of buying or selling pressure at that price level, but that the price did not move much during that period. This can be useful information for traders looking to make decisions based on order flow and volume.