Technologies behind Bitcoin and Cryptocurrency

There are many concepts that enable the successful working of Bitcoin and Alt Coins over the years. The following are fundamental technologies that contribute to Cryptocurrency domain.

1) BlockChain

Blockchain acts a record of ledger for all the transactions in the network. Think of a Blockchain as a database for storing all of the transactions occurred and will occur in the future.

Know more about the Blockchain technology in this post

2) Cryptography

Cryptography deals with the security aspects in the networking domain. It aims to protect the data that is being communicating over the network (generally Internet) so that, no outsider can understand the data except for the intended receiver. Cryptography is a demanding field in Computer Science.

Know more about Cryptography in this article...

3) Distributed / Decentralized

In every cryptocurrency, the underlying blockchain is distributed. It means the same blockchain is copied and distributed to many computers all over the globe. All of the Blockchains have same data. If anyone tries to change data then it will be detected because there are several copies of blockchain and we can know which is the valid blockchain.

Know more about this Consensus Protocol here

4) Peer 2 Peer

A Peer 2 Peer (also known as P2P) is decentralized application architecture in which all the users can interact or perform the required use case directly with each other. There will be no governing authority that facilitates the interaction or provides the approval. The users in the P2P network will have the full rights. Main aim is to avoid the mediator / intermediate authority or any 3rd party.

Examples are uTorrent, Bittorrent, Bitcoin Transactions...etc.

5) SHA 256 Algorithm

• S - Secure
• H- Hash
• A - Algorithm

SHA 256 is a Cryptographic Hash Function that converts any given input into a string of 64 random Hexa-Decimal characters. These 64 characters take 256 bits of size to store in memory. Hence, the name SHA 256.

Know more about the SHA 256 Algorithm here

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What are Stable Coins in Cryptocurrency ?

Stable Coins - Aims to Keep their Value Stable

Stable coins are a class of Cryptocurrencies whose goal is to keep the price or market value of exchange rate as stable as possible. The implementors of stable coins achieve this by fixing the price of a stable coin to an external factor like Price of Dollar or Price of Gold etc.

Cryptocurrency markets are highly volatile and the values of any coin may crash and sink to bottom or the value may increase and sky-rocket up to the moon. The market is unpredictable.

So, there is a need for a fixed value coins that don't undergo these type of unpredictable changes. Stable coins came into existence to fulfill this need.

Bitcoin is not a stable coin !!

Each Stable coin has its own Blockchain and all the transactions of that respective coin will get recorded in that Decentralized ledger.

Some of the popular & widely used Stable coins:

1) Tether
2) Paxos Standard Token
3) DAI
4) USD Coin
5) True USD
6) Reserve

and many more... Detailed posts on each of the stable coins will be updated soon... bookmark this page or remember this site (jvermaDLL.blogspot.com) for insights on cryptocurrencies for beginners.

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What are ALT Coins in Cryptocurrencies ?

ALT Coins (Alternative coins for Bitcoin)

After the establishment of Bitcoin, a new variety and numerous coins of Cryptocurrencies came into existence. These all have individual names but all of them are collectively called as Altcoins.

Alt coins are relatively much cheaper in value when compared to BTC. This provides good agility in trading markets so that investors can easily buy and sell coins in less amounts of value.

Altcoins - All coins other than Bitcoin

Each coin in altcoins will have its own Blockchain which acts as a ledger for storing all the transactions of that coin by all users.

There are currently more than 5000+ Cryptocurrencies / altcoins as of now !

Some popular and widely used Alt coins are:

(Click on the each Coin for detailed post on that coin...)

1) Ethereum

2) Tether

3) Ripple

4) Tron

5) Litecoin

6) Dash Coin

7) Bitcoin Cash

8) Atom

and many more... Detailed posts on each of the altcoins will be updated soon... bookmark this page or remember this site (jvermaDLL.blogspot.com) for insights on cryptocurrencies for beginners.

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List of Best Hardware Wallets for Storing Bitcoins / BTC / Cryptocurrency.

The following are some of the best Hardware wallets or Cold Wallets available for storing Bitcoins or any other Cryptocurrency (Also known as ALT Coins).

1) Ledger Nano X 

• Size - 72mm x 18.6mm x 11.75mm
• Weight - 34g
• Connector - USB Type-C
• Box Contents - 1 hardware wallet, 1 USB cable, 1 getting started leaflet, 3 recovery sheets, 1 keychain strap.

Visit Website : Ledger Nano X

2) Tezor

• Available in 2 models - Tezor One & Tezor Model T
• Good Customer Support. Simple and Intuitive GUI.
• Tezor model T comes with touch screen functionality.

Visit Website: Tezor

3) Cold Card

• Only for Bitcoins. Low Cost
• Bright, 128x64 pixel OLED screen.
• Full-sized numeric keypad makes entering PIN easy and quick.

Visit Website: Cold Card

4) BitBox

• Supports more than 1000+ Cryptocurrencies
• OLED Display, Invisible Touch Sensors.
• USB type - C, Micro SD Card Back up.

Visit Website: BitBox

5) OPOLO

• Supports 120+ Popular coins
• Easy recovery process

Visit Website: Opolo

6) Cobo Vault

• 4-inch Touchscreen, Detachable Battery
• Self-Destruct Mechanism, Fingerprint Authentication

Visit Website : Cobo Vault

You might be interested in - List of Best Software Wallets 

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