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.

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...
Proof of Authority (PoA) Summary [Cryptocurrency consensus mechanisms] by @Gal
Proof of Authority is a consensus mechanism where members of a cryptocurrency network are identified and receive delegated powers to solve blocks. If they defraud the system t...
Proof of Elapsed Time (POET) Summary [Cryptocurrency consensus mechanisms] by @Gal
In this poetically named consensus mechanism, network participants prove that they have slept for a random amount of time before being able to mint a block. POET was released b...
Proof of Location (PoL) Summary [Cryptocurrency consensus mechanisms] by @Gal
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...
ELI5 Multisignature Systems by @Gal
A Bitcoin is simply a signed transaction on the blockchain. When you say you own X Bitcoins, it means one or more transactions were signed, using private keys, attributing a certa...
ELI5: Blockchain explained in simple terms by @Gal
A blockchain is a database formed by a sequence of entries called (you guessed it) blocks. Blockchains have a special characteristic by which any attempt to modify one of its ...
Proof of Work Summary [Cryptocurrency consensus mechanisms] by @Gal
PoW uses a brute force approach where miners compete to find block hashes beginning with a certain number of zeroes. The more zeroes, the more difficult it is to find such hash...
Proof of Stake Velocity (PoSV) Summary [Cryptocurrency consensus mechanisms] by @Gal
As the name implies, Proof of Stake Velocity is a variation on traditional PoS. It was developed for the Reddcoin project, which abandoned Proof of Work in favor of the more en...