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 First, second, third and fourth generation cryptocurrencies [2021 Update]
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 Provably Fair Games
What is a provably fair game? The answer lies at the heart of a whole new industry which has been developed around the transparent, decentralized, nature of the blockchain. ...

ELI5 Bitcoin Puzzle Transactions
As the name implies, Bitcoin puzzle transactions are created as a challenge and not for the usual purpose of monetary transfer. Puzzles can be published for several reasons, in...

ELI5 PSBT – Partially Signed Bitcoin Transactions
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...

Understand the Double Spending problem
As the name implies, the double spending problem consists in executing a transaction twice while subtracting once from your balance. This, of course, can only happen by means ...

ELI5 Proof of Stake (PoS) – How does PoS work?
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...

How to buy Bitcoin near me?
If you feel insecure about purchasing Bitcoin through virtual channels, a personal contact can go a long way in helping you break through the toughest barrier for new crypto inves...

Opinion: Decentralized blockchains can only survive having a valuable token, like Bitcoin, attached to them [Feb 2018]
We've heard this time and again, especially from folks in the financial sector: "blockchain is here to stay, Bitcoin not so much". Is this really so? We disagree, and in th...

ELI5 What’s a stablecoin?
Since the beginning of cryptocurrency history, most crypto assets have been known to experience enormous oscillations against the US Dollar (or some other legacy fiat currency). ...

Proof of Location (PoL) Summary [Cryptocurrency consensus mechanisms]
In a Proof of Location consensus algorithm, users' geospatial coordinates are accounted for as proof of value. This kind of algorithm is usually employed in cryptocurrency geom...

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Concepts In This Page

First Generation Cryptocurrencies - The first generation cryptocurrencies was spawned by Bitcoin. Several Bitcoin forks exist on this generation. Most 1st generation coins simply copied the Bitcoin source code while modifying the encryption algorithms and total coin supply.
Second Generation Cryptocurrencies - The second generation of cryptocurrencies added on-chain smart contracts and fully featured contract programming languages. Ethereum, which is the most notable 2nd generation cryptocurrency, brought smart contracts and introduced tokens to the masses, spawning the wave of ICO's from 2014 onwards.
Third Generation Cryptocurrencies - Third Generation Cryptocurrencies are still being developed. These include everything from second gen cryptos, plus on-chain governance, delegated Proof of Stake consensus and native compliance features. Cardano is a notable example of 3rd gen cryptocurrency project.
Crypto Games - Cryptography and cryptocurrency based gaming.
Gaming - Everyone's favorite thing. Right?
provably fair
provably fair game
Bitcoin Puzzle - A Bitcoin Puzzle is a cryptographic puzzle which carries Bitcoin as a reward. Those able to break the cryptography obtain access to the private key needed to unlock the Bitcoin.
Puzzle Transaction - A cryptocurrency transaction designed to be broken. Usually a cryptographic puzzle having cryptocurrency as a reward, such as finding the private key to a UTXO loaded with Bitcoin.
BIP174 - Bitcoin Improvement Proposals entry #174 establishes the Partially Signed Bitcoin Transaction Format

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Basic Concepts

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Concepts In This Page

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