A process or system by which multiple parties are able to reach consensus. In the context of cryptocurrencies, it’s the process which allows for everyone to agree on everyone else’s money balance. E.g. Bitcoin employs Nakamoto consensus via PoW mining.
ELI5 : What is Proof of Trust (PoT)?
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...
ELI5 What is Nakamoto consensus?
Cryptocurrencies are an application of the more general distributed computing field of research.
While Bitcoin's potential impact on financial markets sent it straight to the ...
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ELI5 Proof of Stake (PoS) – How does PoS work?
In the cryptocurrency universe, Proof of Stake (PoS) is one of the most popular alternatives to the Proof of Work (PoW) family of consensus mechanisms. While PoW systems invest large amounts of energy to make sure transactions are legit, PoS does not require mining hardware. Proof of Stake “miners” (stakers) must lock a financial stake […]
How can I sell Bitcoin?
There are many ways in which you can sell your Bitcoins. Over the counter (OTC) trade is growing everywhere, thus fulfilling one of Satoshi’s original ideas, which was to have a 100% decentralized P2P currency. There are also many centralized exchanges where you can safely trade your BTC for other cryptos, or even cash. In […]
Proof of Burn (PoB) Summary [Cryptocurrency consensus mechanisms]
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 principle that minting a block must incurr in some cost, otherwise fraudsters could inject invalid transactions into the blockchain. Bitcoin achieves this by making […]
Proof of Trust (PoT) Summary [Cryptocurrency consensus mechanisms]
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 and they lose an equivalent amount in value (the cryptocurrency or token employed). In a Proof of Trust system, “trust” is staked […]
Concepts In This Page
A process or system by which multiple parties are able to reach consensus. In the context of cryptocurrencies, it's the process which allows for everyone to agree on everyone else's money balance. E.g. Bitcoin employs Nakamoto consensus via PoW mining.
Proof of Space Time
In a Proof of Space Time consensus mechanism, participants prove that they've provided the network with a certain amount of storage space for a certain amount of time. Similar to Proof of Capacity and Proof of Space, but with a time parameter added.
Stable coins are backed by a reserve fiat currency in order to hedge against exchange variations. Most stablecoins are tethered against the US dollar.
Cryptocurrency Tokens are coins which are managed using smart contracts stored on blockchain. A token depends on an underlying blockchain, whereas coins have their own sovereign chains.
Cryptocurrency Transactions (TX's) are the logical object which tie an unspent output to a new input, forming the chain which allows us to control address balances. Transactions are grouped into blocks which, when verified by mining or staking, form the blockchain.
A concept of value exchange that does not require physical tokens (coins or paper cash) to be used in order to trade. Cryptocurrencies are a type of digital money.
Elon Musk is a serial entrepreneur who co-founded innovative companies such as Paypal, Tesla and SpaceX. His ambitious projects and impressive technical feats have catapulted him to the helm of business innovators.
HashCash is an early Proof of Work (PoW) system developed by Adam Back. Its initial purpose was to fight email spam, but HashCash ended up becoming a central component of the Bitcoin consensus mechanism.