What is crypto currency

[ABCbits]

Many newbies do not have the foundational knowledge to distinguish between Bitcoin and altcoins. This may be very risky as poor knowledge of cryptocurrencies can lead one to invest in the wrong coin thinking they are all thesame but they are not. Cryptocurrencies are different in terms of their use cases, transaction speed, technology and many more. Newbies should understand the differences between these coins before making investment decisions.

There are two major types,

1. proof of work (PoW)
2. Proof of Stake (PoS)

The coins run based on PoW can be considered as decentralised but there are other factors involved in determining the decentralisation level but on the overview pos coins are less decentralised since it's controlled by small group of validators whereas pow based on the miners authentication and verification.

But in practice, not all PoW coins can be considered as decentralized. For example, BSV have insane hardware requirement to run full node[2] and ability to confiscate steal coin[2].

[1] https://web.archive.org/web/20240709092849/https://docs.bsvblockchain.org/network-topology/nodes/sv-node/system-requirements
[2] https://blog.bitmex.com/bitcoin-sv-hardfork-significant-security-risks/

[Mia Chloe]

It actually depends on what kind of definition you are in need of . For example one of the simplest definition is crypto currencies are simply  digital currencies that make use of cryptography to create secure transactions. Sometimes instead of making use of the term " cryptography " I'll likely make use of the phrase "Layered  technology" which I literally use to refer to the Blockchain.

Of course if you really want to go deeper you will find out that there is definitely more to it than this. Anyways is it just me or does anyone here recognise the fact that most knowledgeable members here can make these definitions without needing to Google or something?

[Chilwell]

My fellow members has gave different definitions, meaning and their understanding on cryptocurrency. But in my understanding Cryptocurrency is decentralized, meaning it's not owned or controlled by any single entity, government, or central bank. It operates without intermediaries, utilizing cryptography for secure transactions, which are recorded on a public digital ledger called the blockchain. But before an individual should understand what cryptocurrency is all about, the person needs to aquire knowledge and understand the meaning of the *blockchain*.