Below is a draft of a book that i have started writing. It will be the first book released from the Macrohard hub and will begin the process of enhancing the curriculum of 'legitimate illiteracy', the basis of an entire school that i have created, that everyone can school in.
By means of this book, i will incorporate 'legitimate illiteracy' with 'cryptocurrency', introducing is mix among participants of the Macrohard hub. Where copies of the books are sold, it will intimate the world about 'cryptocurrency' in a legitimate illiteracy way and proceeds from sales will go towards the evolution and sustenance of the Macrohard hub. The Macrohard hub is currently located in the Philippines.
I am trying to recover a bit from the passing of my dad. I didn't play my role as son enough and it haunts me. This book will be dedicated to my parents. By its means, may i make them proud a bit and heal in turn.
Your boy Terry
Chapter 3 - Blockchain, DAPP And Cryptocurrency.
Blockchain - A 'chain of blocks'.
Cryptocurrency - A 'digital currency'.
DAPP - A 'decentralized application'.
That simple? Yes.
Even technologically, each of the aforementioned luxury tools can't be complex to create. Each is premised by the same paradigms that guard conventional technologies e.g 'code is law'. Each is created by 'humans'. As tools, each is built by humans to cater to humans.
As highlighted in chapter two and three, a clearer understanding of 'life and humans' will help you understand the niche of 'cryptocurrency' with ease.
The niche of 'cryptocurrency' typically consists of 'Blockchain > Cryptocurrency > DAPP'.
In this chapter, we will introduce you to the aforementioned luxury tools, explaining each tool in a simplified manner. Let's dispel the notion that the niche of cryptocurrency is complex.
The Blockchain
'A chain of blocks'.
Let us take a quick look at the relationship between 'blocks' and 'chain'. A block is a collection of data pertaining to transactions.
A transaction can take different forms. For example, the Bitcoin blockchain was built primarily for 'financial services'. Hence, the 'blocks' that make up the Bitcoin blockchain store data pertaining to 'financial transactions' e.g 'date, time, transaction amount, sender, recipient etc'.
On the other hand, the Hive blockchain (i.e 'https://hive.io') was built primarily for 'social media'. As such, the 'blocks' that make up the Hive blockchain store data pertaining to 'social transactions' e.g 'likes, replies, dislikes etc'.
While the Bitcoin blockchain may be a perfect fit for E-bay (an e-commerce website), it may fail to perform well, if used for Instagram (a social media website). The Hive blockchain on the other hand, may be a good fit for both E-bay and Instagram because though it was built primarily to support 'social transactions', a financial transaction has a social element.
A chain in this context refers to a system of documenting 'blocks' in a chain-like manner i.e a new block is always appended to end of the latest block.
Blocks also have timestamps, giving each block its unique age and position on the chain.
Each block has information that distinguishes it from other blocks, a unique identifier called a 'hash'. Yet, this hash is used to link one block to the next, strengthening the chain.
Why 'blocks' and why 'chain'?
Let us reiterate that a block stores pieces of data associated with transactions. For instance, a block sized at '1 Mega-Byte', may contain data associated with thousands of transactions.
Within the scope of this segment, we will focus on 'financial transactions'. Typical 'data' associated with financial transactions are 'date, time, sender, recipient etc'.
On a blockchain, transactions aren't recorded directly. Transactions are inserted into a block instead. Once validated, this block is appended to the latest block on the chain, maintaining a blockchain.
e.g 'Block 500'_'Block 501'_'Block 503'.
As such, besides data pertaining to 'transactions', a block also stores information about the block preceding it, in form of a 'hash'.
A 'hash' (typically represented by a string of alpha-numeric characters) is a 'unique identifier' used to distinguish one block from the next. Alas, a hash is also used to connect one block on the chain, to the next.
But there is more...
On a blockchain, a hash is the 'result' of a valid block i.e for a block to be recognized as valid, it has to provide the blockchain network with a valid hash. This is called a 'root hash'.
Did we mention that 'transactions' on a blockchain are identified by their own hashes too? Well, each transaction has its own hash. Transactions contained inside a block are represent by hashes. These hashes are 'mathematically semi-permutated' (encrypted) to arrive at a 'root hash'.
For now, let us describe this 'root hash' as the password that a block needs to validate its insertion into the blockchain. Un-technically, we can also describe this 'root hash' as the password that the blockchain needs to decrypt 'data' about the transactions contained in a block.
e.g visit '
https://www.blockchain.com/explorer'
and paste this, '000000000000000000089c84e1528034d960366dec7a7b65425e53749ff89f6e' into the search-box, located at the top-right segment of the page.
In practical terms, the above hash was your password for decrypting or accessing the data associated with Bitcoin transactions contained in 'Block 653554' of the Bitcoin blockchain.
It is obvious that a blockchain prefers to record 'hashes'. On the one hand, recording 'hashes' instead of 'transactions' is its 'encryption/security' mechanism. On the other hand, recording 'hashes' instead of bulky 'transactions' keeps a blockchain 'light-weight', allowing it to scale.
(As we will see later!)
A blockchain was innovated to be tamper-proof, publicly-accessible, decentralized and un-delete-able. A transaction on a blockchain is also irreversible.
So far, we have been looking at the model behind the 'Bitcoin blockchain', a blockchain innovated to cater to the sector of 'financial services'. As we discussed in chapter 2, 'financial services' is a delicate sector, needing of 'trust'.
'1 BTC' today, ranges around '11,000$' in price. Any tamper to the Bitcoin blockchain translates into huge financial losses. Do you better-understand why BTC makes use of a blockchain or a chain of blocks?
The 'current block' (e.g Block 653554) keeps a record of the hash of the 'previous block' (e.g Block 653553) and delivers its hash to the 'next block' (i.e Block 653555), strengthening the chain. This cryptographic-chain method of storing data is the general basis for a blockchain's unique security-mechanism.
However, there is another salient reason why 'Bitcoin' makes use of 'blockchain technology'. Since, 'financial transactions' on the Bitcoin network happens in a peer-to-peer fashion, a financial transaction between two parties should succeed without authorization from a third-party. In the later part of that chapter, we will discuss the role of 'blockchain' in ensuring that transactions can settle 'peer-to-peer'.
For now, let us play with a simple scenario below, to help you understand how difficult it is to hack or tamper a blockchain...
A blockchain is extremely hard to tamper or hack. Being a chain, made up of interconnected blocks, to tamper data about a particular transaction for instance, a hacker will need to hack 'the particular block containing the targeted data' first, which in itself is hard. How so?
Upon entering this block to hack it, in search of this 'target data', he is met with 'an encrypted hash' instead, which he will need to decrypt/reverse/de-permutate to arrive at the hash representing the 'transaction' that he wants to tamper, a hash that he need to decrypt too; unknown to the blockchain network.
Recall that a blockchain transaction is irreversible? Well, the thing is, if the hacker manages to tamper/change the data associated with a transaction contained in 'Block 653554' (let us assume this block was recorded a month ago), its original 'root hash' adjusts as well, creating a new 'root hash'.
To complete this tampering, the hacker practically breaks the chain, alerting the blockchain network of a hack, because he will have to tamper the hash of every other block making up the chain. Computationally, to tamper each block on the chain, he will need all the computers in existence.
Note also that, all along, the hacker has mostly attacked one copy of the blockchain. There are other copies!
In all eventuality, the hacker's attempt fails because there are copies of the 'entire blockchain' distributed across random locations, each in its original state.
It timely to conclude that, typically 'blockchain records' are irreversible or permanent, meaning that each transaction documented on a blockchain can't be deleted.
As more blocks are added to the chain, the blockchain grows taller and older, improving its security.
Yes, a blockchain has a height and an age, which only extends. Each 'new state' of the chain is instantaneously communicated and registered to every node that holds a copy of the blockchain, maintaining each copy 'up-to-date'.
As such a blockchain remains public and decentralized.
Ideally, a blockchain doesn't remain a blockchain, if it fails to maintain copies of itself on 'random servers' (nodes) distributed across various locations. This way, random nodes have a need to communicate and validate 'transactions' through consensus.
This establishes another important element of a blockchain; 'a consensus-mechanism'.
Different blockchain(s) make use of different 'blockchain technologies'; thus, each have their own 'consensus' mechanism.
This consensus mechanism can also be used in determining what 'technology' a blockchain uses, as we will explain later.
For a transaction to settle, distributed nodes making up the blockchain network, need to agree that a certain block is valid, before it is allowed in. An invalid block can be rejected.
Blockchain(s) have 'computing' capabilities too! Hence, on a blockchain, a transaction can occur between two parties, in a peer-to-peer fashion, without third-parties, like 'banks, government or legal systems'.
In financial system based on 'virtual currency', where transactions happen in a peer-to-peer fashion, data needs to be held on a ledger that is tamper-free, immutable and decentralized.
Now, let us a take a quick general look at how a transaction executes on a 'blockchain'. This will give you further insight into the value of 'blockchain technology' in the scheme of things.
On a blockchain, a typical financial transaction occurs between two parties, in a peer-to-peer fashion. If a sender wants to send a payment to a recipient, all he needs is the recipient's wallet-address. Not much else is needed for a transaction to complete.
On the bitcoin blockchain for instance, a 'public wallet address' is generated anytime a user initiates the creation of a bitcoin wallet; an 'alpha-numeric string of characters' that look like this: 'bc1qa0e24rdvnc2aszdm5dnt4nfj3zs2u0se5j2sa9'. This 'unique identifier', similar to a 'username', is used to distinguish one 'bitcoin wallet' from the another. A user is also provided with a 'private key' (a randomly generated password)
Alas, this wallet address is also an entire Bitcoin wallet, accessible by a 'private key'. This private key
To initiate a 'transfer' operation for instance, the owner of a Bitcoin wallet must log into his wallet using his 'private key', proving to the network that he owns his wallet.
On the other hand, to receive Bitcoin, he needs to provide his public wallet-address to the sender.
This means 'bc1qa0e24rdvnc2aszdm5dnt4nfj3zs2u0se5j2sa9' used in our example earlier, is a 'recipient/deposit' address associated with a 'bitcoin wallet' and it can transfer or store 'Bitcoin'. Being public, BTC-holder can transfer 'BTC' to 'bc1qa0e24rdvnc2aszdm5dnt4nfj3zs2u0se5j2sa9' even inadvertently, with success.
A bitcoin transaction is irreversible!
On the 'Hive blockchain' for instance, being a blockchain built for 'social-media', wallets are identified by conventional usernames e.g '@surpassinggoogle'.
To send '5,000,000 HIVE' to '@surpassinggoogle', simply log in to your 'Hive blockchain wallet' ('https://wallet.hive.blog'), using your 'private-key', initiate a transfer and approve it. A financial transaction on the Hive blockchain settles in 3 seconds and cost zero fees. This transaction is irreversible.
Different 'blockchain(s)' apply their own technologies but their general model is similar.
Have you noticed that on both blockchains i.e Hive and Bitcoin, transactions can complete without the need for a centralized body or third-party?
Blockchain improves the way contracts are administered, allowing for transactions between two parties to settle without the need for a third party.
Now, let us look compare our earlier scenario with that of a traditional or centralized financial system
In a traditional financial system, say you simply wanted to send someone a micro-payment of '0.2$'; there will be several third-parties involved. Does this matter?
Okay, let us assume that the payment-processor or third-party merchant involved (e.g PayPal) takes fees; in this case, a small fee of '0.02$'. Can you complete your payment, if you only had '0.2$' in your PayPal wallet?
Now, what if the recipient was located in 'USA', where the currency is 'USD' and you are located in the Philippines, where the currency is 'PHP' and there is additional foreign-exchange fee, involving other third-parties e.g banks; your transaction further-fails.
This entire process initiated when you created your PayPal wallet, a wallet that you must have funded with '0.2$'. In the process of setting up a fully-functional PayPal wallet, you must have gone through a 'know your customer' procedure, which involves parting with some personal information. This procedure applies, even though your transaction involves just '0.2$'.
In some cases, PayPal may require additional verification to decide whether you eligible for a PayPal wallet in which hold your money. Who knows, they may need a copy of your passport at this stage.
Against all odds, you completed your payment; does it mean that the transaction has settled? Not entirely!
Further assuming, let us say that the recipient has successfully registered a PayPal account, to receive a payment of '0.2$'. He now sees the said amount in his wallet but 'he is un-banked'. Has the transaction settled yet?
The bank has deemed him 'ineligible for a bank account', even after he has parted with his entire identity.
Even if he eventually got banked, what if PayPal decides to take withdrawal fees?
'An unsettled transaction and many third-parties involved'! Amidst all the hassle, what if government comes in and decide to tax this '0.2$'? 'More third-parties, a bit more fees'!
Yes, for '0.2$' both parties may have compromised on their privacy and perhaps sold their identities to third-parties. You just got public; your entire ledger distributed freely among these 'third-parties'. They can hold you accountable, they can influence you!
PayPal for instance can up-sell you. You can can't up-sell them as their ledger is private.
Now, there are advantages to 'centralized financial systems' but there are alternatives too, 'financial systems' that are decentralized in nature and knowledge of these alternatives is empowering at least.
As seen with our PayPal example, 'transactions' in a 'centralized financial system' can turn out slow. Each third-party involved in the transaction maintains a ledger but each one's ledger is private or centralized.
PayPal for instance, in certain cases, can't allow your transaction to settle, without being able to verify via the 'bank's ledger' that you are banked, neither do they have access to your ID, to ascertain who you are. While 'knowing you' is a tangible security-mechanism, for better-business sake, it favors PayPal and any other third-party involved to know who you are, that they can targeted-ly upsell you.
Speaking of security, in our PayPal scenario, there is a network of known paths to intercept funds during a transaction. Being centralized, it isn't out of question that PayPal can be hacked and your funds transferred or shut-down and your funds lost. Who says a bank can't go bankrupt and your funds lost? Now, someone with your PayPal details, may automatically have your bank details and your entire identity too.
A tangible question thus is, is it entirely necessary that humans compromise their privacy to transact financially. Should humans be able exercise a right to interact financially without interference? Why has society become so predictive? Are centralized financial systems free of crime? Have there been a financial system in the past that peer-to-peer, yet trust-less?
Today, 'blockchain' and 'the financial system it provides' is considered 'unconventional' but is it really? If it is 'unconventional', is it a tangible alternative? Can it evolve into the ideal financial system. Can centralized financial systems incorporate a layer of decentralization?
As we have seen so far, having looked at two different blockchain(s) i.e 'Hive and Bitcoin', blockchain features a certain level of anonymity or privacy. Does this hamper a user's ability to financially or socially transact on it reputably? The answer is not far-fetched!
Users of these blockchain(s), only need their digital signatures to transact or interact. Once they have successfully accessed their wallet using their private key, they prove ownership of their wallet. This they can accomplish whether they are private or public figures and extra permission or authorization from a third-party. Within their wallets, they can fully-access their funds too!
When this user executes a transaction, the blockchain comes into play, to validate and record the transaction. It validates this transaction by means of a decentralized consensus-mechanism and communicates leaving us a publicly-accessible ledger, that anyone can audit. The blockchain is always accessible because there a copies of it on various nodes hosted on different services. Even if one server is off-line, there are other servers online.
What have we established?
On a blockchain, on a decentralized 'financial system', a user can chose to be public or anonymous, without any effect on his/her ability to transact or interact.
On the Hive blockchain for instance, a user can decide to affiliate his username with his social identity but this is optional. Similarly, someone may decide to share a post-update on his public Twitter, containing his 'BTC wallet-address', automatically associating a once anonymous BTC wallet-address to his identity.
Now, are there 'reputable people' on the blockchain network? Very much so!
This is underlyingly obtainable by virtue of blockchain's public and permanent nature. Users of blockchain adopt a measure of accountable and responsibility in their blockchain interactions, knowing that any data associated with their person, recorded on the blockchain, is public and permanent.
For instance, if a public figure like Mark Zuckerberg was to transact whether socially or financially on the blockchain, he would be wearier of his behavior compared to on Facebook, which database he controls.
Too, many blockchain(s) are modeled with a reward-mechanism usually powered by a 'cryptocurrency', to incentivizes and reward 'reputability'.
Starting with the nodes, which hold the blockchain, there has to be reputability. How so? 'Nodes' (typically 'infrastructure'), are backed by 'humans'.
Whether it is 'Bitcoin node' or a 'Hive witness' (i.e a Hive node), there are humans in charge of maintaining blockchain 'nodes' and these humans are expected to be reputable.
As custodians of the blockchain which secures transactions involving many users, they are expected to be trustworthy. As much as we have established that a blockchain can't be hacked, it can be hacked internally. If these custodians are not reputable, they can collude to take control of the blockchain and tamper its state.
Typically, the larger the 'network' (referring to 'the no. of consensus nodes'), the more 'distributed the network' (referring to 'the geographical-range of consensus nodes'), the harder it becomes to reach a consensus that is detrimental to the blockchain network.
Do you better understand, why 'blockchain(s)' make use of 'decentralized consensus-mechanism(s)' to validate transactions?
Most blockchain(s) are modeled to maintain a 'decentralized consensus-mechanism', in a bid to discourage 'a centralized consensus-mechanism'. To accomplish this, many blockchain(s) implement a native 'cryptocurrency'; in effect, birthing a secondary utility for cryptocurrency called 'governance'.
By means of this cryptocurrency, an economy erupts that also steers governance. Users of the network are incentivized to participate more in governance, directly or indirectly, altogether strengthening the network. Node-operators and 'the average user' alike are incentivized to maintain 'reputability'. Anyone can become a node-operator!
On the Bitcoin blockchain for instance, each transaction on the network generate fees in 'BTC' which is shared among 'miners' (i.e 'node-operators'). Whenever a node mines a block successfully, there is an associated mining-reward paid to its operator, currently 6.2 BTC.
On the Hive blockchain, 'nodes' are called 'witnesses'. Similar to the Bitcoin blockchain, 'witnesses' are rewarded in 'HIVE' (the native cryptocurrency of the Hive blockchain) as an incentive for 'validating transactions'.
With a giant and ever-growing network, it becomes un-profitable to be disreputable. While a competitive economy seems to encourage 'collusion', the ever-decentralizing nature of these economies discourages 'collusion'. Assuming you are able to compete in this crypto-sphere and you are able to climb the ranks, in a bid to collude with other high-rankers on a mission of disreputability, the network which has continued to grow, continues to grow and alas, a random person, likely reputable who wants to compete enters the mix.
Recall that being decentralized and incentivized, anyone can desire to participate in the blockchain network and economy. To continue to participat. Whether you like it or not, your reputability manages to grow too, even obliviously.
For instance, on Bitcoin, as the network grows, to stay relevant 'mining BTC', you will need to continue upgrading your infrastructure to meet the demands of the network. If you can't maintain that reputation, others can because unlike centralized systems, where once tentacles can be chopped at will, anyone can participate.
Blockchain is a mentality-adjuster.
Let us conclude by touching on two popular consensus-mechanism i.e 'Proof Of Work' (used by the Bitcoin blockchain) and 'Proof of Stake' (used by the Hive blockchain). Understanding these 'consensus/reward-distribution models' now, will be relevant in chapter where we begin discussions on how you can model or create your own blockchain.
To a broader context, this will help you understand the relationship between the real world and these digital worlds, perhaps, giving you more insight into the 'true state of the world'; thus, helping your better differentiate between the real world and the painted world.
'Proof of work' is the consensus mechanism used by the Bitcoin blockchain till date to validate transactions. The Bitcoin blockchain quite introduced this consensus 'validation' model and technology, which has been adopted by other blockchain(s) too, such as Ethereum.
When you hear 'proof of work', it is indicative of 'physical infrastructure'. To mine 'BTC' rewards, a node-operator has to set up 'large infrastructure' made of powerful computers, to compete among other nodes in the network as part of the process for completing transactions.
As we have hinted just earlier, 'nodes' hold 'copies of the Bitcoin blockchain' and run a version of the Bitcoin software, enabling them validate transactions. When a transaction is initiated, say you wanted to transfer BTC from your wallet to another, nodes compete to validate your transactions. This involves a lot of hashing as we highlighted in chapter two, which involves a lot of computational power. Nodes fastest to solving the hash puzzle accurately mines the block and is rewarded for its work in 'BTC'.
As the size of the Bitcoin network grows, referring to the number of financial transactions on the Bitcoin blockchain, it grows difficult to 'mine blocks'. Nodes that upgrade their infrastructure with more efficient/faster computers, have a better chance at mining blocks than others.
These days considering the size of the Bitcoin network, companies with large budgets are better positioned to 'mine bitcoin'.
Being that Bitcoin is decentralized, anyone can setup a mining rig. However, your infrastructural setup will have to be solid, to be successful at mining Bitcoin profitably.
Besides, mining rewards, miners are also compensated with miner fees. Each transaction on the Bitcoin network has an associated cost paid by the user. This fee is priced in BTC. Most Bitcoin wallet has a default fee designated to a transaction, which a user can customize if he wants to speed up his transaction. A typical Bitcoin transaction takes place in 10 mins, regardless of the fees paid. The bitcoin protocol is designed with block times of 10 mins to avoid congestion.
Consensus requires the entire network of Bitcoin nodes. Each node runs the Bitcoin software, containing the consensus protocol, which defines what constitutes a valid transaction. All the nodes are communicated new iteration of the blockchain, now containing a new transaction. If it passes the standards of all the nodes across the Bitcoin network, the transaction is validated.
Radical changes to the Bitcoin blockchain itself (e.g adjustments to consensus protocol that validates transactions, miner-rewards, miner-fees etc) requires consensus too; a different type of consensus from that that validates transactions but the logic is similar.
The Bitcoin source-code is public and open-source, meaning that anyone can audit the code and its iterations. As such, anyone can propose changes to the Bitcoin blockchain through a proposal system. Where your proposal is accepted by the Bitcoin community at large,your proposed changes is implemented into the code by the Bitcoin developers maintaining the code and a new version of the Bitcoin software becomes available. Nevertheless, additional consensus must be reached by the 'nodes' or miners. For the changes to actually take place on the live version of Bitcoin, at least 95 percent of the miners, would need to update their version
'Proof of stake' is different from 'proof of work'. More recent blockchain(s) have adopted 'proof of stake' and the Ethereum blockchain, which currently makes use of
Proof of stake allows more participation from the average user in the overall consensus, whether it is the consensus to validate transactions or for forks. A user just needs to have stake, in the native currency of the blockchain to participate in its governance
This model saves substantial computing power resources because no mining is required.
The Hive blockchain uses a mechanism called 'proof of stake'. Recall that Hive is a social blockchain. Well, its approach to validating blocks or its consensus protocol is social in nature too. One can call it democratic.
People vote in the top nodes and the top nodes participate in consensus or validating blocks. and usually a factor is reputability. Once he is unvoted, leaving the top ranks who decide consensus.
Different blockchains have their own standards on what constitutes a fork.
A blockchain like HIVE (hive.io)
Cryptocurrency
A 'digital currency'.
In this segment, we will dissect 'cryptocurrency', simplifying it to your understanding.
Well, we have already begin the process by dissecting 'blockchain'. Un-coincidentally, in our effort to explain 'blockchain', we mentioned the term 'cryptocurrency' many times.
Whether you want to create, interact or transact in 'cryptocurrency', let us establish that 'it is only as difficult as 1, 2, 3'.
Today, many associate 'cryptocurrency' with its 'financial value', without cognizance of its utilities or underlying 'blockchain technology'.
For instance, there is 'Bitcoin' (BTC) the 'cryptocurrency' and there is 'Bitcoin' (https://bitcoin.org) the blockchain.
It is true that an average user. You are not an average user. You want to create your own cryptocurrency.
As we can already tell, a cryptocurrency is usually a product of a blockchain.
Usually, a cryptocurrency is created on a blockchain. It needs a blockchain to function.
As we have seen with the first established cryptocurrency Bitcoin, 'cryptocurrency' was original created to cater to the industry of 'financial services'. However today, many more utilities have been discovered for cryptocurrency.
As highlighted in chapter 2, even as a currency, while cryptocurrency can replicate the tenets of traditional money, it doesn't have the limitations of . As a 'money', it can be customized and turned into 'your money'; and by anyone.
While cryptocurrency falls in the category of a 'digital currency', it possesses tenets that makes it different; a cryptocurrency. Ultimately, it requires a blockchain to function and a blockchain is cryptographically-modeled.
Adopting properties of its parent, a cryptocurrency is typically decentralized in nature.
Digital currencies may have existed before the concept of 'cryptocurrency'. For instance, some games have 'digital currencies' exchangeable for gems etc. In effect, a digital currency may not be a cryptocurrency.
'Digital' is mostly a generic term for something that isn't physical.
This "text" is digital.
To reiterate once again that a cryptocurrency can be created by anyone, 'coingecko.com' enlists some 5000, each currency its own properties.
Speaking of popular cryptocurrencies like BTC, ETH, you can possess this whether you are banked or unbanked. To interact with , you dot need permission. The underlyingly blockchain simply takes into account your ownership, which you can prove with a private key.
A typical cryptocurrency transactions is a 'transfer' transaction, indicating that you can make make payments, tip,
Some cryptocurrencies offer the feature of sending a memo, with some improvisation thus, you can interact using this 'transfer' function and encrypt your memo.
A cryptocurrency is inherently private. This means that you arent required to have your
But some cryptocurrencies have a cost per transactiln. Bitcoin for instance. Each protocol has its own deifinations, hence Hive allows you to transact at zero fees.
Today, it can be sutomized to be more potent than moeny. This the power of cryptocurrency.
As we discussed, 'cryptuc
Some blockchains are pay to play model. Some blockchain use this method to dissuade potential hackers or network congestion etc. Underlyingly, this gives some cryptocurrencies its utility. For instance, you pay bitcoin solely to interact with the bitcoin blockchain.
You may purchase ETH to make use of a feature offered by a decentralized application built on the Eth blockchain.
On the Hive blockchain, you may purchase hive to stake it for clout. Unlike what has been propagated.
Well, you cannot use money directly. Some dapps have practically backed their cryptocurrency, they will only accept. This means that, while you have money, you will need to change
a word native to 'blockchain'.
Is an important part of a blockchain. In general, the world thinks it is poor. Reward-distribution thus has become an im. Incentive.
In my case, i intergrate incentive in the formation of my cryptocurrency, It is important to identify the teners. This is what wil give your ctrpyocurrency its identity and potenty. It can turn out revolutionary or typical and fade like cryptocurrencies before it.
A cryptocurrency inherits characteristics from its parent blockchain.
Ethereum computer Ethereum is a separate blockchain: while it supports the Ether currency, it also acts as a distributed computing platform that features smart contract functionality. Therefore, despite having a virtual currency element, it has many more uses than Bitcoin. For example, companies in various industries raising funds through ICOs use Ethereum for their projects.
Doge, ETH, Bitcoin. leo,
DAPP
A 'decentralized application'.
How do people access the blockchain? While it is possible to interact, perhaps more securely, without an actual user-interface or application, a decentralized application made up of a user-interface or website comes in handy.
For the regular internet user, you want an interface to interact with the blockchain. A basic dapp is a blockchain wallet.
Decentralized too in terms of distribution of IP.
A DAPP is a decentralized application. A major element of a DAPP is 'data'. This are tiny pieces of information associated with 'transactions'.
An application needs data to function. It needs to retrieve data and record data to identify as an application. If its data source is decentralized, it can be referred to as a DAPP.
Facebook for instance is an application. Its data source is centralized in nature.
Hive.blog on the other hand is a DAPP. Its data source is the Hive blockchain, which is decentralized.
**Extracurricular activities**
Let us look at another DAPP called 'Leofinance'. It retrieves its data from the Hive blockchain.
Conclusion
As we have continued to reiterate, an understanding of life and humans, will help you understand the niche of cryptocurrency with ease. This is why we have made our unique and related it using an approach called 'legitimate illiteracy'. Much of the knowledge, have come from this understanding, one of ponder, insight and perhaps, spirituality. Our approaching to developing this narrative is 'ulogging', which has involve 'mining the human'. We encourage you to read an assimilate this using a similar approachi, mining your human.
In chapter one and two
Each blockchain incorporates a model that encourages reputability and discourages disreputability. As we have continued to reiterate, understanding 'life and humans' helps you i
This is to reiterate once again the dynamics of money, perhaps you will have better use for blockchain, when you eventually begin to interact with it. Do you own the funds in your PayPal wallet?
It has some computational capabilities. These blockchains have involved to having smart-contract capabilities which can be customized.
As highlighted in chapter one and two, users of blockchaineople's outlook on money adjust. The knowledge that you create money as mentioned in chapter and you don't pursue it as much.
, they practically own it and this is known. Third party can't
If blockchain will handle, it has to be scalable.
Storing things in hashes makes a blockchain hard to hack. Also allows for blockchain to be scalable. Instead of holding large data information, it can hold hashes that identify these data.
Transactions are hashed as well. Then transaction hashes are combined until there is root hash.
Different blockchains have their own consensus and governance mechanism. Like world systems, once again, these systems are quite boolean-based. A vote system.
In addition, blockchain technologies have evolved to include “Smart Contracts” which automatically execute transactions when certain conditions have been met.
**footnote**
I gave 5 days to writing and publish this book but it is some 7 days already. My health just isn't letting me. I am still struggling to complete chapter 3 or 10 chapters and gosh, i need to act fast. Almost 4 months of hub rent has gone past and i haven't started the hub fully yet. I am struggling with quit notice, looking for a new house and my utilities owed is almost 1,000 USD owed. I am too lost but i will not quit and by Jehovah's grace, i won't drop. To sustain my inspiration, i have put out chapter 3 before i complete it. In will push hard to finish chapter 3 to 10 in two days.
I will soon resume fuller activity. I was able to bury my dad some 7 days ago, after 17 days past since he passed.
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