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Basic Concepts Category - Page 2

ELI5: What is a DAO (Decentralized Autonomous Organization)?
DAO stands for Decentralized Autonomous Organization. It is a concept that stems from organizations being able to run based on self-enforcing smart contracts. Note: although th...
ELI5 What is cryptocurrency mining?
Mining is the process by which cryptocurrency transactions get verified. The process got its name from the fact that once a block is verified, whoever solved it will earns som...
ELI5 First, second, third and fourth generation cryptocurrencies [2023 Update]
Although the theoretical building blocks that form cryptocurrencies existed prior to 2009, it was only in January of that year that Bitcoin registered the first ever transaction o...
Understand the Double Spending problem
As implied by the name, a double spending problem happens when a transaction is processed twice while your account balance is only subtracted once. This, of course, can only h...
ELI5 How to mine Litecoin
Litecoin has consistently been one of the most popular cryptocurrencies since its inception in 2011. It was initially forked from the main Bitcoin source code by a developer ca...
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...
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...
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...