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Cryptocurrency: Big Picture - Coggle Diagram

- - - - no one owns it, no organization, no banks
      - one computer to another transfer directly
  - - - no middleman
      - no one can freeze your account
    - - very safe from hackers
    - - the cost is only international wire transfer
      - running on the internet = fast
  - - - Do Your Own Research
      - so many types of crypto
    - - coin
        
        native to their blockchain
        
        e.g bitcoin, ethereum
      - token
        
        built on top of a blockchain/coin
- - - - stores transaction data (timestamp)
      - to avoid backdates or temper them
    - - a record, or a single list in linkedlist
      - stores transaction commands
      - contains
        
        data (to A, from B, ammount C)
        
        hash of block
        (fingerprint/git hash)
        
        based on the data
        
        if data change, hash changes
        
        hash of prev block (linkedlist)
    - - a list of records
      - analogy: column, linkedlist as a whole
    - - what is it
        
        every peer / entity has copy of the blockchain
      - usage
        
        validate other's blockchain too
      - ## consensus algorithm
- - - - technical
        
        candlesticks
        
        indicators
        
        trading strategies
      - short term
    - - long term
      - fundamental
        
        asset allocation
        
        dollar cost averaging
        
        project research
  - - - what is it
        
        proof of stake
        
        what is it
        
        consensus algorithm
        
        how it works
        
        random selection on the winner
        
        influenced by
        
        how long it staked
        
        node's wealth (how much it stakes)
        
        others
        
        different method for different coin
        
        difference vs. POW
        
        stake
        
        forges block
        
        takes profit from transaction fee
        
        analogy: tukang parkir
        
        mine
        
        mines block
        
        basically random game
      - why coins "staked"
        
        chosen node can't try anything like fraud
        
        they have more to lose
        
        as a guarantee that we're not doing crime
    - - what is it
        
        your coin borrowed
        
        returns with interest
        
        for margin to others
        
        your coin locked
    - - what is it
        
        your pc guess random numbers
        
        trying to secure network