Tag: Cryptocurrency Mining

What Is Proof Of Work And Proof Of Stake?

Posted on by Wayne Burritt

One of the best features of cryptocurrency is that there is no need for a central authority like a bank to sign off on business transactions. So I can do business with someone without a massive bank or other financial behemoth looking over my shoulder. And so long as the terms of the transactions are fulfilled – whether it’s buying something with Bitcoin and executing a contract with Ethereum – the deal is done.

Driving this whole process is a network of computers with multiple copies of all the transactions – including the one I just mentioned. When everyone on the blockchain verifies these transactions, the transaction is added as a new block. The process is complete until the next transaction comes around the corner.

But here’s the rub: When I first go into crypto, I knew that people would do all this work on the blockchain because they would get paid in coins that made up the blockchain. But if you have a ton of people all doing the same work, who decides which person gets paid?

Well, there’s just two ways of getting paid if you work on a blockchain: Proof of Work and Proof of Stake. And here’s the nitty-gritty on both.

Why Do We Need Proof of Work or Proof of Stake?

The answer is pretty straightforward: To manage the issuance of new coins and to make sure people don’t cheat. Continue reading "What Is Proof Of Work And Proof Of Stake?" →

The 2021 Guide to Cryptocurrencies (Part 2)

Posted on by Wayne Burritt

If you’re like me, when I first got the cryptocurrency bug, I was overwhelmed by the concepts, technicalities, and mounds of jargon. All I really wanted was for someone to just give me some short snippets about the most important topics I needed to know. And to leave the minutiae for a later time.

Well, if that sounds like you, you’ve come to the right place. In this second part of The 2021 Guide to Cryptocurrencies, I’ll take you through two topics that are key to getting involved with the cryptocurrency and blockchain space: Why you should think hard about owning a little bitcoin and where to get started with a cryptocurrency exchange.

And in case you missed it, don’t forget to check the first part of this series. It has valuable information about what the blockchain really is, what cryptocurrency really means, and whether or not they’re right for you. It would be a good primer for this issue but isn’t necessary.

So, let’s get to it! Continue reading "The 2021 Guide to Cryptocurrencies (Part 2)" →

The 2021 Guide To Cryptocurrencies (Part 1)

Posted on by Wayne Burritt

Welcome to the 2021 Guide to Cryptocurrencies! If you’ve ever wondered what cryptocurrencies are all about, you’ve come to the right place!

This guide is perfect for just about anyone. In fact, you could be a seasoned crypto investor, a new investor to the space, or just someone who wants to learn more. No matter how you got here, this guide is built for you.

I’ve taken topics that are key to learning more about cryptocurrencies and blockchain. Then I’ve combed through every article I’ve written for INO.com over the past few months. Out of that pool of articles, I’ve selected just the right mix that are ideal for the topics you need to know about.

But before we get started, a quick word of caution. If you’re going to invest in cryptocurrencies – and there are good reasons why everyone should own a little – remember that the entire space is risky, highly volatile, and unpredictable. So, if you’re going to take the plunge, don’t devote more than 1% to 2% of your portfolio. And ask yourself if you’d be comfortable losing that 1% to 2% because you just might.

Now, with that out of the way, let’s get to the 2021 Guide to Cryptocurrencies! Continue reading "The 2021 Guide To Cryptocurrencies (Part 1)" →

What You Don't Know About Altcoins

Posted on by Wayne Burritt

What are Altcoins?

First off, the term altcoin is a portmanteau of two words, “alternative” and “coins.”

But don’t let that throw you: Alternative is the keyword here.

Alternative to what? Well, you guessed it: Bitcoin.

That’s right: Altcoins are all cryptocurrencies, except Bitcoin.

But that answer just gets us started.

So, let’s get to it! Continue reading "What You Don't Know About Altcoins" →

The Truth Behind Mining Cryptocurrency

Posted on by Wayne Burritt

If you’re like most of us, when your first heard about cryptocurrencies, you heard about Bitcoin (BTC). And as you waded through the morass of information trying to get a handle on what Bitcoin really was, one of the first big obstacles you ran into was that BTC comes into existence by a process called “mining.”

I thought to myself, “you mean like gold?”

If that stumped you, you’re not alone. I know it did me.

In fact, as I began my cryptocurrency journey, the process of mining became one of the most fascinating – and tricky – concepts to get my head around. I really didn’t know what to believe.
Well, no worries.

In today’s installment, I’ll give you the truth behind mining cryptocurrency. I’ll break down the basics of cryptocurrency mining, what it’s about, how it’s done, and why people do it. And if I’ve done my job, you’ll get a good understanding without a bunch of technical jargon.

Now, if you’re looking for a starter kit on crypto, I recommend taking a look at a high-level explanation of cryptocurrency and why it’s such a big deal. You don’t need those to get a good understanding of what we’ll talk about today, but they may be able to fill in some holes.

First off, some housekeeping items. Continue reading "The Truth Behind Mining Cryptocurrency" →