While the crypto and blockchain spaces have been around for quite some time, many are still in the dark as to what these spaces are and how to navigate through them. The concept of cryptocurrency, which began as a joke to some with a high level of anonymity, has grown over time to become one of the most important aspects of modern technology. With a remarkable increase in market cap over the years, mounting to over $300 billion, we can say crypto is the biggest contender to fiat and will stay with us longer than most had expected at its inception. Even with the aggressive popularity of crypto on the internet and in other forms of media, some basic concepts about it are yet unknown to a significant number of people.
It is ideal, one should understand these concepts to navigate the crypto world. It is imperative because you would be meeting these concepts a lot as you undergo your journey through crypto. We will break down some of these common terms below. Let’s jump right in.
BITCOIN:
You guessed right, this had to be the first because plenty of trends and market positions can be greatly influenced by Bitcoin.
Bitcoin is the first and largest cryptocurrency. Created in 2008 by Satoshi Nakamoto, who has remained anonymous until today, the digital currency is not guided by any centralized authority. Hence, no one has absolute rights over Bitcoin. This most influential cryptocurrency can be used as a medium for the purchase of goods and services as well.
SMART CONTRACT:
As the name implies, smart contracts are contracts that run on their own without any external interference. They are programs that execute contracts on the blockchain automatically. When the conditions of the contract are met, the program executes itself. Smart contracts are created by developers and programmers and added to the blockchain.
NFTs:
NFT simply means non-fungible tokens. This is a non-fungible digital asset, which means that it cannot be duplicated. It maintains its original property, which makes the buyer the unique owner of the asset. NFTs can be just about anything, ranging from pictures, songs, documents, videos, memes, etc. NFTs are also blockchain assets because the uniqueness of any NFT is backed up on the blockchain.
ALT COINS:
You must have seen a lot of this on your Twitter timeline: “Altcoins,” or “Alt Coins,” is simply a short form for “alternative coins.” They are the digital assets that are Bitcoin alternatives. So, if your crypto isn’t BTC, then it’s an alt. It’s that easy.
BLOCKCHAIN:
Blockchain is simply a secure kind of database that is accessible to everyone. The blockchain is used to store information through electronic means in a digital format. Blockchains are used for cryptocurrency transactions, and this is the chief reason why all crypto transactions are transparent to all. This assists crypto systems in maintaining a secure and decentralized process. All data recorded on the blockchain is trusted and guaranteed because it cannot be interfered with by a third party.
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