Decoding Virtual Currencies and Bitcoin for Beginners, List of Terms and Definitions

We have written a lot about how Bitcoin economy is shaking up the world. Here is a link to all such articles we have written in the past. But from a Beginners point of view I wanted to make clear, some of the common terms and definitions used with regard to virtual currencies and Bitcoin.

Bitcoin for Beginners:

Bitcoin (BTC): Bitcoin is a form of virtual currency that is not controlled by anyone. Bitcoins aren’t printed, like euros or dollars – they’re produced by users running computers all around the world, utilizing software that solves mathematical problems. It is a cryptocurrency, so-called because it uses cryptography to control the creation and transfer of money. Bitcoin has a cap of 21 Million currency units.

Litecoin(LTC): If Bitcoin is a form of modern Gold then Litecoin is a form of modern Silver. Charles Lee, launched it in early 2011. Litecoin is based on algorithmic system that is similar to Bitcoin but different enough to offer some of the same benefits but with more attributes. It has a cap of 84 million currency units.

Cryptocurrency: A cryptocurrency is a digital medium of exchange. The first cryptocurrency to begin trading was Bitcoin in 2008. Since then, a number of cryptocurrencies have been created.

Cryptography: is the practice and study of techniques for secure communication in the presence of third parties. Basically, it is about analyzing and constructing protocols that overcome the influence of adversaries and which are related to various aspects in information security.

Mining: The process of making computer hardware perform mathematical calculations for the Bitcoin network to confirm transactions and increase security. As a reward for their services, Bitcoin miners can collect transaction fees for the transa ...

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