BASICS

OF
CRYPTOCURRENCY
AND BLOCKCHAIN
Salvation Energy
Objectives of Today's Meeting

● Blockchain
● Cryptocurrency
● Centralized and Decentralized Wallets
● Security
● setting up Environments
BLOCKCHAIN
Blockchain
The validity of each cryptocurrency's coins is provided by a blockchain. A
blockchain is a continuously growing list of records, called blocks, which are
linked and secured using cryptography.
Each block typically contains a hash pointer as a link to a previous block, a
timestamp and transaction data.
By design, blockchains are inherently resistant to modification of the data. It
is "an open, distributed ledger that can record transactions between two
parties efficiently and in a verifiable and permanent way".
For use as a distributed ledger, a blockchain is typically managed by a
peer-to-peer network collectively adhering to a protocol for validating new
blocks. Once recorded, the data in any given block cannot be altered
retroactively without the alteration of all subsequent blocks, which requires
collusion of the network majority.
The transaction is known almost immediately by the whole
network. But only after a specific amount of time it gets
confirmed.

Confirmation is a critical concept in cryptocurrencies. You

could say that cryptocurrencies are all about confirmation.

As long as a transaction is unconfirmed, it is pending and

can be forged. When a transaction is confirmed, it is set in
stone. It is no longer forgeable, it can‘t be reversed, it is
part of an immutable record of historical transactions: of
the so-called blockchain.
Only miners can confirm transactions. This is their job in a
cryptocurrency-network. They take transactions, stamp
them as legit and spread them in the network. After a
transaction is confirmed by a miner, every node has to add
it to its database. It has become part of the blockchain.

For this job, the miners get rewarded with a token of the
cryptocurrency, for example with Bitcoins. Since the
miner‘s activity is the single most important part of the
cryptocurrency-system we should stay for a moment and
take a deeper look at it.
● Welcome to the Era Where
Decentralized Finance (De-Fi) is
Becoming the heat of the Day
De-Fi
● De-Fi [Decentralized Finance]
● Decentralized cryptocurrency is produced by the entire cryptocurrency
system collectively, at a rate which is defined when the system is
created and which is publicly known. In centralized banking and
economic systems such as the Federal Reserve System, corporate
boards or governments control the supply of currency by printing units
of fiat money or demanding additions to digital banking ledgers. In the
case of decentralized cryptocurrency, companies or governments
cannot produce new units, and have not so far provided backing for
other firms, banks or corporate entities which hold asset value
measured in it. The underlying technical system upon which
decentralized cryptocurrencies are based was created by the group or
individual known as Satoshi Nakamoto.
● As of May 2018, over 1,800 cryptocurrency specifications existed.
Within a cryptocurrency system, the safety, integrity and balance of
ledgers is maintained by a community of mutually distrustful parties
referred to as Miners: who use their computers to help validate and
timestamp transactions, adding them to the ledger in accordance
with a particular timestamping scheme.
● Most cryptocurrencies are designed to gradually decrease
production of that currency, placing a cap on the total amount of that
currency that will ever be in circulation. Compared with ordinary
currencies held by financial institutions or kept as cash on hand,
cryptocurrencies can be more difficult for seizure by law
enforcement.This difficulty is derived from leveraging cryptographic
technologies.
CRYPTOCURRENCY
● What is cryptocurrency?
● If you take away all the noise around
cryptocurrencies and reduce it to a
simple definition, you find it to be just
limited entries in a database no one can
change without fulfilling specific
conditions. This may seem ordinary, but,
believe it or not: this is exactly how you
can define a currency.
● So, to give a proper definition –
Cryptocurrency is an internet-based
medium of exchange which uses
cryptographical functions to conduct
financial transactions.
Cryptocurrencies leverage blockchain
technology to gain decentralization,
transparency, and immutability.
● How miners create coins and confirm transactions
● Let‘s have a look at the mechanism ruling the databases of
cryptocurrencies. A cryptocurrency like Bitcoin consists of a
network of peers. Every peer has a record of the complete
history of all transactions and thus of the balance of every
account.

● A transaction is a file that says, “Bob gives X Bitcoin to

Alice“ and is signed by Bob‘s private key. It‘s basic public
key cryptography, nothing special at all. After signed, a
transaction is broadcasted in the network, sent from one
peer to every other peer. This is basic p2p-technology.
● Cryptocurrency Derives it's
Properties from the
Blockchain
● Irreversible: After confirmation, a
transaction can‘t be reversed. By nobody.
And nobody means nobody. Not you, not
your bank, not the president of the United
States, not Satoshi, not your miner. Nobody.
If you send money, you send it. Period. No
one can help you, if you sent your funds to a
scammer or if a hacker stole them from your
computer. There is no safety net.
● Pseudonymous: Neither transactions nor
accounts are connected to real-world
identities. You receive Bitcoins on
so-called addresses, which are randomly
seeming chains of around 30 characters.
While it is usually possible to analyze the
transaction flow, it is not necessarily
possible to connect the real-world identity
of users with those addresses.
● Fast and global: Transactions are
propagated nearly instantly in the
network and are confirmed in a couple of
minutes. Since they happen in a global
network of computers they are
completely indifferent of your physical
location. It doesn‘t matter if I send
Bitcoin to my neighbor or to someone on
the other side of the world.
● Secure: Cryptocurrency funds are
locked in a public key cryptography
system. Only the owner of the private
key can send cryptocurrency. Strong
cryptography and the magic of big
numbers make it impossible to break
this scheme. A Bitcoin address is more
secure than Fort Knox.
● Permissionless: You don‘t have to
ask anybody to use cryptocurrency.
It‘s just a software that everybody
can download for free. After you
installed it, you can receive and
send Bitcoins or other
cryptocurrencies. No one can
prevent you. There is no gatekeeper.
● cryptocurrency is definitely gaining traction and will
most certainly have more normalized uses in the next
few years. Right now, in particular, it’s increasing in
popularity with the post-election market uncertainty.
The key will be in making it easy for large-scale
adoption (as with anything involving crypto) including
developing safeguards and protections for
buyers/investors. I expect that within two years, we’ll
be in a place where people can shove their money
under the virtual mattress through cryptocurrency, and
they’ll know that wherever they go, that money will be
there.”
● CRYPTOCURRENCY WALLET
● What is a Crypto Wallet?
● If you’re investing in cryptocurrency, you want to use an
alternative currency for privacy or other reasons, you’ll need a
place to store your money and a way to send or receive
cryptocurrencies.

● A crypto wallet is the answer. Crypto wallets come in many forms,

including web wallets, mobile, desktop, paper, brain and
hardware wallets. Some desktop wallets, called full nodes, hold a
complete copy of the blockchain for the cryptocurrency. On local
storage, this type of wallet has a long sync process when opened
and creates a massive amount of stored data.
● What are Crypto Wallet Keys?
● A crypto wallet key is a long series of letters
and numbers that unlock your wallet. In
some cases, a passphrase called a seed,
comprised of a long list of unrelated words,
is used to unlock your crypto wallet. This
type of wallet is called a hierarchical
deterministic wallet, or an HD wallet.
● In either case, anyone who knows or can
access your private key can control the
currency stored in your crypto wallet —
even if they don’t have access to your
computer. Only the key is needed for
access. Your key is also used to generate
your wallet address.
● A cryptocurrency wallet stores the public
and private "keys" or "addresses" which can
be used to receive or spend the
cryptocurrency. With the private key, it is
possible to write in the public ledger,
effectively spending the associated
cryptocurrency. With the public key, it is
possible for others to send currency to the
wallet.
● Types Of Crypto Wallets
● Hot wallets. These types of wallets use keys
that were created or are stored on a device
that has access to the internet. Because the
keys were created or are stored on a device
that can be accessed remotely, a hot wallet is
regarded as the least secure type of wallet,
but is also the most popular due to its utility
and convenience.
● Cold wallets. Cold wallets use keys created
on a device that has never had access to the
internet. Examples of cold wallets are
hardware wallets, such as a portable USB
drive or smart card device, paper wallets
(keys only written on paper) or brain wallets,
which use a seed made of a series of words
or a password that can be memorized.
● Decentralized wallets. A decentralized wallet
means that only you hold the keys to your crypto
wallet and you have the freedom to send or
receive cryptocurrency with your wallet anywhere
in the world. A decentralized wallet doesn’t
guarantee complete anonymity. It simply means
you don’t rely on a third party to send, receive, or
store your cryptocurrency, removing part of the
security risk associated with hosted wallets.
● Exchanges as crypto wallets: A large number of cryptocurrency
owners have used Coinbase or other exchanges as both an exchange
and a crypto wallet. Coinbase has made a convenient choice because it
supports three leading cryptocurrencies and allows payments, buying,
selling, or even trading through its GDAX platform. Based on
statements from Coinbase’s CEO Brian Armstrong, Coinbase will be
shifting focus from being a hybrid wallet/exchange to purely being a
retail and institutional exchange. In general, it’s usually not
recommended to use an exchange or remote wallet as a place to store
significant amounts of cryptocurrency. One strategy to help manage risk
is to keep smaller amounts of currency in exchanges or other
less-secure locations or platforms that make a more attractive target for
hackers or other impropriety.
● Mobile wallets: While convenient, mobile crypto wallets create
a unique set of potential security vulnerabilities. First, phones
are often lost or misplaced. Additionally, if the wallet key is only
stored on the phone, a broken or lost phone can become a
much more expensive mishap, possibly making your wallet
permanently inaccessible. As a third consideration, a mobile
wallet provides more ways to pinpoint your identity, by
potentially exposing your phone number, wallet key or address,
and your geolocation. If you choose to use a mobile wallet,
consider limiting the amount of currency you store in that wallet
and keeping the balance of your cryptocurrency in a more
secure wallet.
● Backing up your keys: The key to your crypto
wallet is the only way you can access your wallet
and the currency held in your wallet. If you don’t
have your key, you can’t access your money.
There’s no support desk to call and no email
recovery tool. You’re just out of luck. For this
reason, you’ll want to back up your wallet key or
seed immediately and keep it someplace safe.
● Centralized Exchangers
(CEX)
● Exchangers Platform
● You can easily Buy, Sell, send and Receive Variety Cryptocurrencies on this
platform, not completely secured to store a large amount of Coins. Coins can easily
be traded for local currency or for other Cryptocurrencies. Exchanger platform are
trading platform and are open 24/7 unlike the Stock/Forex market with market
hours.
● Some Examples of Exchangers are:
● >crypto.com
● >Hotbit
● >Binance
● >kucoin
● >gate
● >Paxful
● >bundle
● >Crypto.com
● >huobi and others
Crypto.Com
Binance.Com
Gate.Com
Hotbit.com
Kucoin.Com
Bundle.Com
● Examples of Decentralized Wallets
● This wallets do not support Trading features, this simply means you cannot buy and sell
your cryptocurrencies on this platform, however their designs are for storing Crypto
coins. You can only send from the wallet or receive into the Wallet, this Wallets can
easily be imported on multiple devices at thesame time, whosoever holds the Key to the
wallet, has access to the fund. Note tat once wallet keys are Misplaced, it cannot be
recovered, so it's best to duplicate the key location and keep them secured.
● Some Examples :
● >Metamask wallet, works as an extension on your computer browser.
● >Exodus wallet
● >Trustwallet
● >Coinbase wallet
● >Token pocket
● >Guarda wallet
● >Electrum wallet
● >mercury wallet and others
Decentralized Exchangers
(DEX)
List of DEX
Julswap.......

1inch exchange

uniswap

pancakeswap
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