ELI5 – Explain Cryptocurrency Like I’m 5!

The very basics for anyone who’s getting started with cryptocurrencies or would like to get involved with crypto software development.

Most articles in this section assume no previous experience with cryptocurrencies.

We try to cover a broad range of subjects, from mining to software development, using accessible language and no excessively technical terms.

Understand how Tether cryptocurrency works by @Gal
How does the Tether cryptocurrency work? How come its value is pegged to U$ 1, exactly? In this article we briefly discuss the curious case of a cryptocurrency that was cr...
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 What is a Bitcoin transaction? by Gal Crypto
In very simple terms, a Bitcoin transaction (TX), is the basic data structure supporting the transfer of value from one BTC address to another. Bitcoin transactions are structu...
ELI5 Cardano Staking & Basic FAQ by @Gal
In this article we look at the very basics of Cardano staking. If you've got any experience whatsoever with other Proof of Stake coins, then you probably don't need to read th...
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 VRF – What are Verifiable Random Functions? by @Gal
Verifiable Random Functions (VRF) are random number generators whose output can be cryptographically verified. Normally, the output of random number generators isn't cryptograp...
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...