Learn About Wallet Paper | White Paper | Decentralization Pattern of Cryptocurrency
Hello and welcome to this webinar which is enriched with learning facts and concepts about “Cryptocurrency.”
Cryptocurrency has become a hot topic for economic debates and discussions across the world. Every day, the news has some coverage of a country either accepting Cryptocurrency or undergoing the process. The United States is the world’s most “Crypto ready” country, according to a new research published.
As Cryptocurrencies become more and more popular around the world, a growing number of people have started to invest in them. However, before making any investments, one must be completely aware and informed. That’s when we come into the picture!!
We shall continue discussing the very basic things about Cryptocurrency:
- How cryptocurrency is different;
- Cryptocurrency decentralized pattern;
- Cryptocurrency white paper;
- And, the crypto-wallet
Difference between conventional currency and cryptocurrency?
So, since this is a new concept, we must know how it is different from the age old system of tangible currency. We know that Cryptocurrency has its roots in e-cash and therefore, it is entirely digital.
- Let’s say you are the owner of a company and you wish to make a deal or a transaction with another company. The funds you wish to transfer are in huge amounts. In the conventional setup, you shall be sending or receiving money through a bank. The bank will inquire about the details of your transaction and the purpose. Whereas, if you trade using Cryptocurrency, there is no bank interfering or supervising your transactions.
- Also, in the conventional way, you might have certain people or bodies, knowing the details and hence, your transaction might be vulnerable to alterations, manipulations and even data theft. That is just not the case with Cryptocurrency.
- Cryptocurrency functions with the help of advanced technology. It is built and created using technology and therefore it will hold a lot of possibilities of functioning effectively in the future.
- Taking note of the same example, if you wish to send money to some other country, you will have to follow the long procedures of conversion and different currency values. But with Cryptocurrencies, their value remains the same across the world. Hence, you are saved from that hassle.
- It is different in a lot many ways from Conventional Currency. But it has a long way to go to start functioning effectively across the globe.
Function of the Decentralized Pattern in Cryptocurrency world?
Cryptocurrencies follow a "decentralized" pattern. This means that no entity or authority is in charge of its flow. This pattern aids in obtaining relief from stringent protocols, lengthy procedures, and authoritative interference. Instead of one party being in charge, a decentralized network operates on a peer-to-peer basis. As a result, personal information is not disclosed to a third party because you simply work from point A to point B.
The flow is simple, swift, and straight. Other users shall be notified of transactions that are taking place, but the details will be completely
opaque. As a result, it is secure and safe, with no risk of theft, scam, or alterations.
Some of the advantages of a decentralized pattern are: It gives you more privacy and allows you to keep your identity. Also, Getting rid of the middleman lowers your transaction costs.
What is the purpose of creating a white paper on cryptocurrency technology?
Now, let us try to understand what is a white paper. I must tell you that a white paper is an essential step in the creation of a Cryptocurrency.
Well, a Whitepaper is an official document typically written in an academic style that explains the project's purpose and technology in detail. It is the most authentic source to describe a Cryptocurrency. When a company plans to launch a new Cryptocurrency, the details are usually laid out in a Whitepaper.
Producing a white paper is an important step to establish legitimacy and professionalism, as it assists investors in understanding how a company differs from competitors in the space.They typically provide statistics, diagrams, and facts to persuade interested investors to buy the cryptocurrency.In simple terms they aim to provide a document that explains in plain language what they’re planning to do.One of the most famous cryptocurrency white-papers is undoubtedly Bitcoin's whitepaper.
Let me share a few tips for our listeners based on how we generally manage our stock portfolio. Do not get emotional when you see overpriced stocks, and instead of waiting for a huge profit, sell at a reasonable margin. You should Invest gains in potentially profitable stocks.
What is the function of a Crypto Wallet?
A crypto wallet is a device which stores the public or private keys for Cryptocurrency Transactions. Apart from this, a Crypto Wallet also offers the functionality of encrypting or signing information.
A simple wallet contains pairs of public and private keys. They can be used to track or detect the owner and transact Cryptocurrencies. The public key is used for encryption and the private key is used for decryption. Even if the public key is known by everyone, only the intended individual will be able to decipher the data using the unique private key.
A wallet merely allows you to interact with a blockchain, about which we shall learn further. There is no exchange of physical coins.
There is another type called ‘Multisignature wallet’. These types of wallets require multiple parties to sign a transaction. Multi signature wallets are designed to have increased security.
When choosing a wallet, the owner must keep in mind who is supposed to have access to the private keys and have the capability to sign a transaction.
There are a few methods you can choose from, for storage of Cryptocurrency. You can keep your coins on an exchange, a hardware wallet, a software wallet and a cold wallet. A hardware wallet is a physical device that you must purchase and is highly secure, example- Ledger Nano S. A soft wallet does not rely on a physical token but only on a software. The mobile wallet is also a suitable option.
Frequently Asked QuestionsConclusion
Who are we? We are the “Crypto Club Panel”.
This initiative was started for the investors and traders to be informed and know exactly what they are dealing with.
We are not advisors but just intend to bring you accurate and simple information. You shall explore Cryptocurrency with us in different ways through many such sessions. We are not the advocates of Cryptocurrency but rather the advocates of Transparency.
Our webinars will help you;
1. To give awareness to the global community;
2. To buy and sell cryptocurrencies;
3. And, to tell you about the creation and function of Blockchain which we shall be covering in upcoming sessions.