Except you still live in the stone age, the chances are that you must have heard that cryptocurrencies have taken over the world. Cryptocurrencies, and indeed blockchain technology, is now the new way to facilitate payment for goods and services.
So, in this article, we will be simplifying some terms associated with the cryptocurrency space. You may have heard of terms like blockchain, smart contracts, Bitcoin, and even cryptocurrency itself. Relax, this article will handle all the explanations so that you understand what each team means.
Let's dive in!
Meanings Of Terminologies In The Crypto Space
What is Cryptocurrency?
In simple words, cryptocurrencies are a group of virtual or digital currencies that people can use to facilitate payment in the economy where they are accepted. The first cryptocurrency to hit the scene was Bitcoin in 2009. At present, there are over 1,500 cryptocurrencies in circulation.
What Is Bitcoin?
Bitcoin is the largest and the most traded cryptocurrency in the world. It was invented in 2009 by a man known as Satoshi Nakamoto using the power of blockchain. The symbol of Bitcoin is BTC. Since the birth of BTC, so many cryptocurrency enthusiasts have use the same blockchain technology to create other cryptocurrencies to provide different services.
What Is Ethereum?
Ethereum is a blockchain-based, open-source, decentralized platform used for its own native cryptocurrency, ether. It was launched in 2015 to enable distributed applications and smart contracts to be built without any downtime, fraud, interference, and control from a third-party.
What Is a Smart Contract?
At its core, a smart contract is an instruction that automatically self-executes with the terms of the agreement between buyers and sellers written into lines of code. The agreements between the buyer and seller are contained in the blockchain.
What Is Blockchain?
A blockchain is a public ledge that records all cryptocurrency transactions. Once a transaction has been recorded on blockchain, it cannot be reversed or deleted. Blockchain makes it difficult for the government to regulate or interfere with the cryptocurrency space.