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ELI5 – Explain Cryptocurrency Like I’m 5! Category - Page 7

ELI5 : How to Read a Cryptocurrency Whitepaper
A key part of the process of investing in a Cryptocurrency is to review the whitepaper. The whitepaper provides provides a range of information on the opportunity, project, proble...
ELI5 What is a Cryptocurrency Mixer? (AKA Tumbler) Are mixers legal?
A cryptocurrency tumbler is a system which mixes transactions in order to make it difficult to trace the origin of the funds. Although in fiat money markets this would be seen ...
ELI5 What does an Ethereum Miner do, exactly?
Ethereum currently uses a Proof of Work consensus mechanism. Which means it requires 24x7 mining in order to keep the network running. So, if you're new to cryptocurrencies, yo...
ELI5 Self-Amendment : How can Tezos upgrade itself?
In a recent post, we discussed Tezos' abstract blockchains. In short, by making system components loosely coupled, you can make changes to one part of the system without breaki...
ELI5 What are Tezos abstract blockchains?
"All problems in computer science can be solved by another level of indirection." - David Wheeler Computer science professor David Wheeler once famously stated that every probl...
ELI5 What’s the minimum amount of XTZ required to stake Tezos?
Is there a minimum amount of XTZ required to begin staking? A lot of new Tezos users ask this question because there certainly is a minimum amount of XTZ required to bake Tezos...
ELI5 How does Tezos protect itself against common attacks?
Unlike other Proof of Stake cryptocurrencies, Tezos does not have the concept of preferred block validators, as this would imply trust. Tezos is 100% trustless platform, wher...
ELI5 Why can’t I delegate Tezos to multiple bakers?
Most Tezos wallets operate on a single account at a time. Which means everything you do in an instance of a personal wallet, like Galleon, is done under one account. To work on...
ELI5 Cardano ADA Staking Pool Pledge
There's been a lot of talk about pledging in Cardano lately. What does pledging mean? What is pledge, exactly? Do stakers need to be concerned? What will the minimum pledge am...
ELI5 Zero Knowledge (ZKP) cryptocurrency proofs?
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...