The booming community of digital assets is still new to the masses. Here are 5 terms that are most frequently used in the crypto-community:
Cryptocurrency is also known as digital currency or virtual tokens. As the term suggests, the currency is a cryptographically encoded digital asset that is supported by blockchain technology. A network of computers is used to track and monitor cryptocurrency transactions; the network is distributed as opposed to being centralized like fiat currencies. Cryptocurrencies have no physical form and their presence is entirely digital.
Blockchain technology is an online ledger. The technology uses peer-to-peer networking of computers to keep track of the open digital ledger. The transactions on the ledger are verified and validated by the network of computers rather than by a central entity. A consensus based validation occurs each time a block of value is added to the network.
Though the process is not mining in a literal sense, cryptocurrency mining indicates the process of validating transactions on the shared ledger and reaping reward coins for the process. Miners work on the public ledger to decrypt hash codes used to secure blockchain technology. By decrypting the codes, a new transaction is added to the chain of transactions and the miners gain a percentage of the digital currency. The transactions can be viewed by every entity on the shared network.
Digital wallets are online storage capsules used to hold a user’s cryptocurrencies. The digital wallets can be accesses from mobile devices or computers and, in the case of cryptocurrencies, are secured through blockchain technology. In order to send digital currencies from one wallet to another, a user can scan or copy an address from another user’s wallet and just fill in the amount to be transferred. Digital wallets are also useful to exchange cryptocurrencies for other cryptocurrencies and many of the wallets can hold multiple currencies.
A crypto-exchange is an online crypto-trade platform where cryptocurrencies can be exchanged for other cryptocurrencies or traded for fiat currencies. These exchanges are similar to stock-exchanges and can be either centralized or decentralized. Read more about different types of cryptocurrency exchanges.
Panaesha Capital is a fintech firm formed in September of 2017 and offers products in the cryptocurrency and blockchain technology sphere. Feelium is a cryptocurrency from Panaesha Capital which offers multiple utility features. Panaesha Capital will also launch a crypto-exchange, PCEX, in Quarter 3 of 2018 where both crypto-to-crypto and crypto-to-fiat transactions are possible. Learn more about Panaesha Capital’s other products and services at www.panaeshacapital.com.