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Established in 2006 as a Community of Reality

Welcome to the Neno's Place!

Neno's Place Established in 2006 as a Community of Reality


Neno

I can be reached by phone or text 8am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.

Established in 2006 as a Community of Reality

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Unable to understand the world of cryptography? Here's everything you need to know about Bitcoin and

rocky
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Unable to understand the world of cryptography? Here's everything you need to know about Bitcoin and Empty Unable to understand the world of cryptography? Here's everything you need to know about Bitcoin and

Post by rocky Wed 16 Nov 2022, 5:41 am

Unable to understand the world of cryptography? Here's everything you need to know about Bitcoin and cryptocurrencies



Unable to understand the world of cryptography? Here's everything you need to know about Bitcoin and 199179








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New York, USA (CNN) -- The world of cryptocurrency has ballooned over the past few years from a niche experiment into a sprawling trillion-dollar financial sector, complete with heroes, villains and warring tribes.

You know it's loud, Matt Damon and Tom Brady promoted it during the Super Bowl. And you know it's controversial because you know what's going on around you.

But you might find yourself nodding your head in gatherings when the conversation turns to the collapse of the Sam Bankman-Fried empire, or the advantages of Proof of Stake versus Proof of Work.

Many people still do not understand the world of cryptocurrency. If you are one of them, read the following article to learn more about what this industry is and why it is important, even if you have no intention of investing in it.
So, what is encryption?
Cryptocurrency is a form of digital asset that is collateralized by a decentralized network of computers.
Cryptocurrencies reject the idea of ​​being controlled by a central bank or government unlike traditional currencies, such as the euro or the US dollar. The original cryptocurrency, Bitcoin, appeared in the year 2009, after the worst financial crisis in modern history.
The pioneers of the cryptocurrency world basically said that, to undo government control, we want our own currency that no entity can manipulate.
The term "cryptography" refers to the way networks are secured, using encryption schemes that make it nearly impossible to forge codes. When we talk about "crypto", we are talking about the digital tokens themselves, or the entire ecosystem of digital assets.
Block chain technology
The other main component that you should be aware of is the blockchain, if to keep it simple it is a public digital ledger that records transactions. It is the record-keeping system upon which most cryptocurrencies are built.
“Think of blockchain as a Google spreadsheet,” said Gareth Rhodes, a former deputy superintendent at the New York State Department of Financial Services who is now managing director at research and advisory firm Pacific Street.
He said, “If Gareth gives $10 to Alison, and Alison gives someone else the same $10, how do you know that Alison gave those $10 she received from Gareth to her friend? You need some way to check that every entry in that table of Google data follows the entry in front of him.”
Once a transaction is verified by the network, it is stored - forever - in an immutable "block".
Bottom line: Blockchain is the core technology of the crypto world, and it may be the most important technical innovation of our time. And people have definitely started adopting blockchain systems outside of the crypto world. Global food supply is another area where blockchain makes it easier for major food producers and distributors to track items from farm to fork, and to respond more quickly when contaminated items enter the mix.
But frankly, the hype around blockchain seems disproportionate to the use cases proponents of the technology have developed so far.
Where did the encryption come from?
It may seem that cryptocurrency was invented out of thin air. To some extent that is true.
The Bitcoin network went public in 2009, created by an anonymous developer (or group of developers) using the name Satoshi Nakamoto.
After many booms and busts, this society is now a huge global network of extremely expensive and powerful computers whose sole function is to run algorithms that solve math problems in a process called mining.
Mining is a tricky concept, so Rhodes suggests thinking of it as "auditing."
“Mining is basically just a process by which the people working on securing and verifying the network verify those transactions,” he said.
Essentially all the computers in the network race towards the "target hash" - aka a really long number sequence - and the first computer to give the correct, matching target sequence creates a new block, and is rewarded with Bitcoin.
Basically it is a game with two functions: verifying transactions and putting new bitcoins into circulation. Another way to think about it is to play Powerball, where you have to match a bunch of numbers to win, and the more tickets you buy - or in the case of cryptocurrencies, the more "hashes" your computer has - the higher your chances of winning.
This computer contest is happening all the time, with a winner creating a new block in the chain approximately every 10 minutes, 24 hours a day, seven days a week.
The whole process consumes a huge amount of computing power, which is why you hear people say that Bitcoin is an environmental disaster. This might be a bit of an exaggeration but it is absolutely true that mining requires an enormous amount of energy, most of which is derived from fossil fuels.
What can I buy with it?
Not much, as at the time of writing, the number of things you can actually buy with cryptocurrency is growing, although it is still very small. Some retailers and shopping platforms are ready to use bitcoin, but the vast majority of retailers do not accept it.
What can I do with it then?
Most people who own cryptocurrency treat it as an investment (albeit a speculative one).
The pandemic period helped increase the demand for Bitcoin and others, a wave that peaked in late 2021. Prices have fallen since then. Bitcoin has lost about 75% of its value since its November 2021 high. As has ether.
If you are thinking of investing, be prepared for wild and unexpected fluctuations in value. Cryptography is not for the faint of heart.
It looks more like a stock than a coin...
The US regulator responsible for overseeing stock markets agrees.
Gary Gansler, chairman of the Securities and Exchange Commission, announced earlier this year that the agency had nearly doubled the size of its crypto division and warned that unregistered crypto exchanges may be operating “outside the law.” He also pledged to work with Congress to create laws for the industry. But it won't happen overnight.
Is crypto a scam?
Good question. The answer is yes. Nor.
Are there cryptocurrency scams? 100%. There are also a lot of scams in traditional finance. In addition to generally high-stakes bets and shady companies, there are actual cryptocurrency schemes out there.
But are all cryptocurrencies a scam? Most likely not. There is still a lot of debate about the usefulness of assets like Bitcoin and Ethereum, and if their vision of the future is one we would all want to join.
https://arabic.cnn.com/business/article/2022/11/16/what-is-crypto-ctrp

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