Bitcoin is a decentralized Digital currency that uses a Peer-To-Peer technology. There isn’t a central authority issuing new money or tracking transactions. These operations are managed collectively by the network.

A Blockchain is collectively maintained by miners who compete to validate Bitcoin transactions in each block by solving the complex Algorithmic problem associated with the block. The incentive for them to use their computing power to verify transactions is that they are rewarded with Bitcoin if they solve the problem and validate a Bitcoin block. The power of such a decentralized network is that economic value and Governance are distributed among the network’s Stakeholders (I.E. Miners and consumers) thanks to this setup, anyone can own and transfer assets Digitally without ..

A protocol is the special set of rules that nodes in a network use when they transmit information. It guarantees that the data packets will be delivered and that they will be delivered in the same order in which they were sent. Another example of a protocol is Internet protocol (IP), which specifies the format of the data packets on the Internet and the addressing scheme. When discussing Blockchains,

The financial incentive for miners comes from the native token built on top of the Bitcoin Blockchain — Bitcoin. Miners who use their computing power to validate transactions are rewarded with a certain amount of coin. The main takeaway here is that every token is based on some underlying Blockchain — whether it’s Bitcoin’s Blockchain, Ethereum’s Blockchain, or some other Forked/New Blockchain. The Blockchain provides a backbone for asset manipulation that is immutable, decentralized, and impossible to counterfeit.

For a typical Bitcoin transfer, the script will define what the spender must provide:

• a public key that, when hashed, matches the destination address included in the script
• a signature to show evidence of the private key corresponding to the public key just provided

Many of us in the Crypto world were under the impression that developers would immediately hop on the bandwagon and use Bitcoin’s Scripting language. But fast forward eight years (Bitcoin was released in 2009), and Bitcoin has yet to become more than a store of value and a speculative investment. Sadly, almost no one I know uses Blockchain-Based applications in their day to day.

A Scripting language is a programming language where you can write code to perform some actions. The Javascript on top reads pretty much like English. Bitcoin’s Scripting language, on the other hand, looks like machine code. Developers are used to writing in expressive languages like Javascript,

A network effect is when a product or service increases in value as more people use it. For every new friend that joins, the value of the product goes up because you can now pay and/or receive payment from this friend. Building up this network is one of the hardest parts of building a successful product, classically known as the 'Chicken and Egg'Problem. The Blockchain provides the technological underpinnings to create decentralized applications,

The 10X rule is important to think about when considering how to get users to substitute existing solutions with the new decentralized ones. As of now, it’s unclear what dimension these 10X advantages come from, so far as users go. I foresee a future where applications are 10X more secure, 10X cheaper, 10X more efficient, or 10X more on some dimension than the current ones. The point is that these benefits have not been proven yet, so there 's

• Ethereum is a Cryptocurrency launched in 2015 and built from the ground up using its own Blockchain technology. 
• It was designed to be a more generalized protocol than Bitcoin’s Blockchain. 
• The goal of Ethereum is to create an alternative protocol for building decentralized applications. 
• The Ethereum Blockchain can be filled with a wider variety of event information coming from any sort of computer program.

Externally owned accounts and contracts accounts have an ether balance. Contract accounts have some piece of code associated with them, while externally owned accounts do not. 

Essentially, a message is like a transaction, except it’s produced by a contract account rather than an external account. When a transaction is sent to a contract account, the code associated with the account is executed by the “Ethereum virtual machine (Evm)” on each Node. 

So essentially, there’s two types of protocols:

• Ones which have a intrinsic token associated with it that help create economic incentives that drive a network
• Ones which don’t have a token that drives financial incentives and are simply used as a communication protocol between nodes

What’s more, these non-intrinsic tokens can exist as: 

• Standalone tokens built on Ethereum 
• Be associated with any new underlying crypto-token-protocol built on Ethereum 
• Be associated with any new underlying crypto-protocol built on Ethereum 

A token sale allows developers to easily release Tradable tokens to raise funds for building a protocol and/or application. 

Early Adopters who believe in the protocol or application have an incentive to buy the token because there is potential for that token to be worth more in the future. As the protocol gains adoption, it increases the value of the tokens, which draws more attention from more investors, application builders and users. Once the protocols begin to take shape and standardize, we’ll likely see a whole host of De-

Besides these issues, there are still lots of unanswered questions that need to be figured out before token sales become a viable form of funding: 

• What is the right design and structure for a token sale? 
• In what cases does it make sense to structure tokens as investment security? How should such token sales be regulated? 
• What criteria should an individual investor use to evaluate token sales? 
• How is an investor guaranteed that the sale process is being managed in a safe and legal manner?