Crypto in Layman

Cryptocurrency is money that is purely digital. This money has no physical bills or coins. It lives online. The most famous cryptocurrencies are bitcoin. Both of these crypto coins function on their own systems and are completely separate. Both are evaluated in a regular currency such as the U.S. dollar or Europe and can be traded for it on exchanges. As I said before the difference between the two lies in the underlying technology. Each of them has a different system they run on system for different pros and cons. That is why we can have multiple cryptocurrencies every cryptocurrency has a slightly different underlying system that fulfills different needs of users with the bitcoin system.

Its main purpose is to move Bitcoin from A to B from mark to caring such a transaction takes up only around 10 minutes no matter the location of the two people. You do have to pay a transaction fee but the height of it can be adjusted. The higher you said the fee the faster will the transaction go through the Etherium system does have the exact same function.

It also moves its main coin called ether from A to B from Paul to Laura but apart from Bitcoin it has one more important feature ethereal system is programmable which means that people can code certain things in it.

Thanks to this feature entirely new alternate coins called tokens can get created inside the Ethereum Network. These tokens are like casino chips next to dollars.

You have multiple casino chips with different values and you can always exchange them for real dollars at the casino’s main counter. But how is it possible to create these tokens?

Actually, anybody technically can. All you have to do is to create something called the smart contract a piece of code best explained on a vending machine example. When it comes to the vending machine you throw in one dollar and it gives you a bottle of water you throw in two dollars and it gives you two bottles of water. You throw in 40 cents and it doesn’t give you anything just your money back. With smart contracts, it’s the same. It has rules and conditions coded in it and it acts based on them automatically.

A user let’s say Paul can send the coin ether inside a smart contract developed by let’s say, Laura. Once he does the smart contract gets triggered and sends back automatically tokens proportionally to the amount of ether received tokens are in our example the bottle so water from the vending machine thanks to the smart contract feature entire programs can get built on the ethereal system.

Programs like ticketing platforms or invoicing platforms when it goes to the invoicing platform you will simply send ether into its smart contract. Your payment would get in within minutes confirmed and broadcasted to everybody and you would get back a confirmation token as your proof of payment in order to build these programs.

Though funding is needed funding to pay developers and experts to receive the funding the token feature can be used to swell teams to create a smart contract they ask for funding. They present the project. If people like it. They at a certain time sent their ether coins into its smart contract and then they received back tokens that can be traded on crypto exchanges.

A lot of people are in demand like this. Some of these tokens grow even 500 percent in their value. I will teach you exactly how to get involved in this process. But for now, remember cryptocurrency is digital money. We have coins like bitcoin. And then we have alternative coins called tokens that can be created inside the Etherium network or other Blockchains.

Crypto in Layman