Known Factors - Deepstash

Known Factors

Unlike the typical government-issued monetary system, most cryptocurrencies come with a predictable supply schedule. This means that you can work out an inflation rate per year, with that being known, rather than being at the whims of a central government.

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MORE IDEAS FROM What Are Cryptocurrencies? | CoinMarketCap

Everyone around the world can participate in the network, and you can send and receive cryptocurrencies quickly within minutes or seconds. This means that even those without access to the current banking system (the underbanked or unbanked) can also participate in the global economy.

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What Are Cryptocurrencies?

A cryptocurrency is a digital medium of exchange using strong cryptography to secure financial transactions, control the creation of additional units and verify the transfer of assets.

There are a few pieces here to focus on: digital, strong cryptography, creation, transactions and verification.

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Related to the point above, you can control and manage your own assets without any intermediaries involved. Just keep your private keys safe!

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You can transact at any time, rather than having to wait for bank opening/operating hours.

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You can check every transaction that ever took place on most blockchains, such as on Bitcoin or Ethereum.

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A bit of a misnomer, trustless is actually a quality meant to explain that you can trust people more because you don’t have to trust anyone in particular. You can use the blockchain with confidence knowing that nobody can tamper with it after your transaction in a block has been confirmed (barring an attack on the network). You can also oblige someone to fulfill their obligations using “smart contracts.”

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RELATED IDEA

The Proof of work concept existed even before bitcoin , but Satoshi Nakamoto applied this technique to the digital currency revolutionizing the way traditional transactions are set.

In fact, PoW idea was originally published by Cynthia Dwork and Moni Naor back in 1993, but the term “proof of work” was coined by Markus Jakobsson and Ari Juels in a document published in 1999.

But, returning to date, Proof of work is maybe the biggest idea behind the Nakamoto’s bitcoin white paper – published back in 2008 – because it allows trustless and distributed consensus.

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A world computer & a settlement layer

Ethereum is a “world computer”: It lets people build apps & products with money baked into the code. If you believe that web3 is going to continue to grow, then you likely believe that over time,

Ethereum will become the “settlement layer” of the internet: All sorts of transactions (whether on-chain or even Visa) will turn to Ethereum to exchange funds and keep secure, immutable records.

Owning ETH is like owning shares on the internet. Demand for ETH will go up with increased web3 adoption, while upcoming changes will decrease the supply of ETH and let more value accrue to holders.

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Bitcoin was born from a crisis

In the middle of the 2008 banking crisis, a group of anarchists, libertarians, and other tech-savvy true believers created digital cash.

In August 2008, bitcoin dot org was registered as a domain. On Halloween the same year, Satoshi Nakamoto put up a whitepaper describing a decentralised system of electronic transactions that did not involve a financial institution.

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