Module 2: Understanding Cryptocurrencies

Cryptocurrency Wallets

• The primary function of a cryptocurrency wallet is to store, send, and receive cryptocurrencies.

Notable Cryptocurrencies

• Ethereum is known for introducing smart contracts and decentralized applications (DApps).
• Bitcoin, often referred to as "digital gold", was created by an anonymous individual or group known as Satoshi Nakamoto.

Blockchain Consensus Mechanisms

• The primary consensus mechanism used by the Bitcoin blockchain is Proof of Work (PoW).
• The main purpose of a consensus mechanism in a blockchain network is to ensure the integrity and validity of transactions, and to achieve agreement among nodes on the state of the blockchain.

Blockchain Security

• The cryptographic technique that ensures the integrity and uniqueness of data stored on a blockchain is hashing.

Consensus Mechanism Comparison

• The key difference between Proof of Work (PoW) and Proof of Stake (PoS) as consensus mechanisms is the way in which nodes validate transactions and create new blocks.

Blockchain Node Roles

• In a Proof of Work (PoW) blockchain network, miners play a crucial role in validating transactions, creating new blocks, and maintaining the integrity of the blockchain.

Blockchain Platforms

• The Cardano blockchain platform is known for its focus on security, scalability, and sustainability, aiming to provide a secure infrastructure for the development of DApps and smart contracts.

Blockchain Types

• The key difference between public blockchains and private blockchains is that public blockchains are open to anyone and transparent, while private blockchains are restricted to a specific group or organization and are not transparent.