I'm willing to make it as easy as possible (simple words, short sentences...) to understand some aspects of cryptocurrencies to newcomers. Targets are your neighbour, you mum, your MP....
The following text is by no means complete - it doesn't even start with "what is a cryptocurrency". I'm not looking for something complete, just for something internally consistent. Completeness will come later.
Please tell me if 1) this is correct 2) this seems simple enough. A good test would be to ask IRL, non-crypto friends about it. I appreciate your help.
(single point of failure: please provide a layman way to explain)
What is double-spending?
Double-spending is a complicated word for a simple thing:
Computer : easy to copy
Money: you don't want it to be copied
How to solve double-spending?
Solution #1 (up to 2009): central authority + trust it will behave honestly (adding layers of security only reduces the risk, without annihilating it - "who watches the watchmen?").
Solution #2 (from 2009 on): unforgeable logs, called "blockchain" (you can still copy the data, but that won't make a difference - you just have backup). "Trust" is placed on maths.
Why bother with blockchain?
Because you want something resilient to attacks on the central authority. This matter mainly concerned alternative currencies. Like the regulated currencies (fiat: euro, dollar...), they needed a central authority since we did not know any other way to prevent double-spending. And a central authority means a vulnerable, single point of failure.
Satoshi Nakamoto, January 2009
What's this crypto 2.0 thing?
We came to realise that there is more than money were we need unforgeable logs. So what was first a monetary thing outgrew its original scope. Hence crypto 2.0, willing to extend the solution to other aspect of society (contracts, evidences of anteriority...)
The following text is by no means complete - it doesn't even start with "what is a cryptocurrency". I'm not looking for something complete, just for something internally consistent. Completeness will come later.
Please tell me if 1) this is correct 2) this seems simple enough. A good test would be to ask IRL, non-crypto friends about it. I appreciate your help.
(single point of failure: please provide a layman way to explain)
What is double-spending?
Double-spending is a complicated word for a simple thing:
Computer : easy to copy
Money: you don't want it to be copied
How to solve double-spending?
Solution #1 (up to 2009): central authority + trust it will behave honestly (adding layers of security only reduces the risk, without annihilating it - "who watches the watchmen?").
Solution #2 (from 2009 on): unforgeable logs, called "blockchain" (you can still copy the data, but that won't make a difference - you just have backup). "Trust" is placed on maths.
Why bother with blockchain?
Because you want something resilient to attacks on the central authority. This matter mainly concerned alternative currencies. Like the regulated currencies (fiat: euro, dollar...), they needed a central authority since we did not know any other way to prevent double-spending. And a central authority means a vulnerable, single point of failure.
Satoshi Nakamoto, January 2009
Quote
I think there were a lot more people interested in the 90's, but after more than a decade of failed Trusted Third Party based systems (Digicash, etc), they see it as a lost cause. I hope they can make the distinction that this is the first time I know of that we're trying a non-trust-based system.
What's this crypto 2.0 thing?
We came to realise that there is more than money were we need unforgeable logs. So what was first a monetary thing outgrew its original scope. Hence crypto 2.0, willing to extend the solution to other aspect of society (contracts, evidences of anteriority...)
Just go up to someone and tell them they can buy drugs with it, or if the like gold, tell them it's like digital gold....only pitch you need.....stop calling it TECHNOLOGY. It's killing it.
