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.

Is Bitcoin a Ponzi scheme? by @Gal
tl;dr; No. Here's the longer version A system where the early birds made billions of U$ and the newer investors who entered in late 2017 are losing money, a system where...
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...
What is Turing completeness and how does it relate to cryptocurrencies? by @Gal
Turing-completeness refers to a characteristic of computing platforms where a computer that is deemed Turing-complete can execute all programs that a Turing Machine would be able ...
ELI5 Zero Knowledge (ZKP) cryptocurrency proofs? by @Gal
In cryptographic theory, a zero knowledge proof is a method by which you can convince someone, who does not necessarily trust you, that you possess a piece of knowledge (proof) wi...
ELI5 PSBT – Partially Signed Bitcoin Transactions by @Gal
One of the key concepts behind cryptocurrencies is that you should not have to meet, much less trust, your peers in order to perform successful transactions. That's why every n...
ELI5 : What is a Directed Acyclic Graph (DAG)? by @Gal
A Directed Acyclic Graph, or DAG, is a graph where no "loops" exist. You can only traverse a DAG in the forward direction, even if you take different paths in the graph. Ess...
ELI5: Are cryptocurrencies considered digital assets? by @Gal
A lot of newbies ask what a digital asset (DA) is, exactly. In this ELI5 article I'll take a look at DA's and how they're related to cryptocurrencies. Digital Assets A di...
What is “formal verification” of cryptocurrency software? by @Gal
You may have heard that Cardano ADA is aiming for formal verification of its core software. What does it mean for software programs to be formally verified? Why is it important...
Understand revenue sharing via smart contracts by @Gal
Your organization would like to pay out a performance bonus to its collaborators and one of the board members has raised the possibility of paying this bonus in Ethereum tokens. Y...
ELI5 : What is Proof of Trust (PoT)? by @Gal
Proof of Trust is a consensus mechanism where users "stake" the trust they've earned in a network in order to verify cryptocurrency transactions. In a proof of trust system, us...