Basic Concepts

In the Basic Concepts category you will find introductory articles that range from the very basics (such as the ELI5 subsection) to medium difficulty subjects (e.g. beginning programming).

The concepts presented on this section are recommended for those beginning with cryptocurrency programming, investing, mining and other crypto related activities which involve some technical background.

ELI5 PSBT – Partially Signed Bitcoin Transactions by @Gal
Trustless operation is one of the key concepts behind cryptocurrencies. The idea is that you should not have to personally meet, or trust your peers, in order to perform successfu...
ELI5 Proof of Stake (PoS) – How does PoS work? by @Gal
In the cryptocurrency universe, Proof of Stake (PoS) is an alternative to the Proof of Work (PoW) consensus mechanism. How PoS Works While PoW guarantees that each network p...
ELI5 First, second and third generation cryptocurrencies by @Gal
Although the theoretical building blocks that form cryptocurrencies existed prior to 2009, it was only in January of that year that Bitcoin registered its first ever transaction o...
ELI5 Multisignature Systems by @Gal
What we call a Bitcoin is simply an unspent, signed transaction on the blockchain. (Technically called a UTXO, for Unspent Transaction (TX) Output.) When you say you own such ...
Proof of Space Time (PoST) Summary [Cryptocurrency consensus mechanisms] by @Gal
Physicists have been discussing spacetime since the early 1900's. A very smart person, by the name of Albert Einstein, modeled space as 4 dimensions rather than just 3. The axis w...
Proof of Capacity (PoC) Summary [Cryptocurrency consensus mechanisms] by @Gal
Proof of Capacity (PoC) consensus algorithms require network participants to prove they have performed a certain amount of storage operations in order to mine a valid block. Wh...
Proof of Space (PoSpace) Summary [Cryptocurrency consensus mechanisms] by @Gal
Proof of Space uses hard disk space as the value used to guarantee a participant's stake in mining. By allocating disk space, the network participant provides value to the netw...
Proof of Activity (PoA) Summary [Cryptocurrency consensus mechanisms] by @Gal
Proof of Activity (PoA) is a cryptocurrency consensus mechanism which combines Proof of Work (PoW) and Proof of State (PoW) into a hybrid mining system. In a PoA system, valida...
Proof of Burn (PoB) Summary [Cryptocurrency consensus mechanisms] by @Gal
In the Proof of Burn (PoB) consensus mechanism, miners earn the right to mint the next block by burning some value in the blockchain. All proof systems are based on the princip...
Proof of Trust (PoT) Summary [Cryptocurrency consensus mechanisms] by @Gal
In a Proof of Trust system, users in a network gain trust as they participate in special activities within the network. If a user tries to defraud the system, the trust is lost...