Hello! I just realized that a lot of us are at home right now due to COVID-19. Many people will see this as a perfect time to learn about Bitcoin. I felt that there are a lot of newbies here silently reading and struggling to understand threads here. Please be patient. I remember it was really hard to comprehend the threads when I was starting. You are trying to be familiar with the website while trying to understand the technical world of Bitcoin.
While it's true that it is your responsibility as a newbie to read and research about Bitcoin. I would still like to share how I started to be interested and "continue" to be interested in learning about it. I believe that it's easy to start learning about Bitcoin, but the hardest part is to continue. The process I've gone through is by reading and by watching Youtube videos explaining about Bitcoin. One advice is start learning it in simple terms. You don't have to push yourself to engage in a discussion right away but it is your responsibility to learn, and this thread is only a guide on where you should start.
This thread is separated into three parts. First, Basic Informative Videos explaing Bitcoin in simple terms. Second, the basic fundamental terms you will always encounter in the discussions. Third, some of the complicated and advance terms in Bitcoin!
I. BASIC INFORMATIVE VIDEOSIf it's hard for you to jump right away in reading about bitcoin. Start with watching informative videos! 99Bitcoins in youtube helps me a lot. It is entertaining, easy to digest videos. Here's a few videos about Bitcoin in Easy terms.
What is Bitcoin? Bitcoin Explained Simply for Dummies Blockchain Technology for Dummies - Blockchain Explained Simply What is a Bitcoin Wallet? (in Plain English) What is Bitcoin Mining= https://www.youtube.com/watch?v=BODyqM-V71E] What is Bitcoin Mining Bitcoin Trading for Beginners (A Guide in Plain English) Bitcoin Halving Explained Simple - Does it Affect Bitcoin's Price? II. TERMS YOU OFTEN ENCOUNTERStart from the bottom, learn the basic terms that is often use in the discussions. I listed some of the terms that you should know which can help you understand complicated and technical terms.
Volatility - The fluctuation in an asset’s prices is measured by its Volatility. Cryptocurrency prices are notoriously Volatile compared to other assets as dramatic price shifts can happen quickly.
Blockchain - The blockchain is a digital ledger of all the transactions in a particular cryptocurrency ever made. It comprises of individual blocks that are chained to each other through a cryptographic signature. Each time a block’s capacity is reached, a new block is added to the chain. The blockchain is repeatedly copied and saved onto thousands of computers all around the world, and must always match each other. As there is no master copy stored in one location, it’s considered decentralized.
Bitcoin Mining - Bitcoin mining is the process of adding transaction records to Bitcoin's public ledger of past transactions or blockchain. In the process of solving the encryption challenges, the person donating the computer power is granted new fractions of the cryptocurrency.
Cryptocurrency - A form of money that exists as encrypted, digital information. Operating independently of any banks, a cryptocurrency uses sophisticated mathematics to regulate the creation and transfer of funds between entities.
Double spending - Double-spending is a potential flaw in a digital cash scheme in which the same single digital token can be spent more than once. Unlike physical cash, a digital token consists of a digital file that can be duplicated or falsified.
Fiat currency - Refers to money recognized as legal tender by governments, such as the US dollar, pound, Euro and Australian dollar.
Decentralized Applciation - A computer program that utilises a blockchain for data storage, runs autonomously, is not controlled or operated from a single entity, is open source, and has its use incentivised by the reward of fees or tokens.
Liquidity - The liquidity of a cryptocurrency is defined by how easily it can be bought and sold without impacting the overall market price.
Halving - Every time miners approve transactions on the Bitcoin blockchain, they earn Bitcoin. As each block on the blockchain fills up with transactions, a certain amount of Bitcoin enter the marketplace. However, the number of Bitcoin that will ever be created is finite; locked at 21 million. In order to ensure this cap is kept, the amount of Bitcoin earned by miners for filling one block is halved at the completion of that block. This is called Halving, which takes place every four years. For the record, by the year 2140, all 21 million Bitcoin will be in circulation.
ICO (Initial Coin Offering) - In order to raise funds, the creator of a cryptocurrency will put an initial batch of its coins up for purchase. This is an Initial Coin Offering.
KYC - Acronym for “Know your Customer” and refers to a financial institution’s obligation to verify the identity of a customer in line with AML laws.
Whale - A term used to describe extremely wealthy investors or traders who have enough funds to manipulate the market.
In no time, you will be surprised how easy it was to comprehend discussions. This will help you think and engage in a certain topic about Bitcoin. Joining discussion will help you learn more about the crypto world, at the same time you will also easily contribute constructive and quality posts.
III. SOME TECHNICAL TERMS TODAYNow, you already have a knowledge about bitcoin. It is now your full responsibility to widen your knowledge in the crypto world. You are now ready to learn about the technical terms. I listed only three technical terms you will often encounter in the discussions today.
Lightning Network - Bitcoin transactions can get slow and expensive, especially during busy times. One of the main arguments why Bitcoin can't be used as medium of exchange is because of how slowly it works, and how expensive it is to send small payments to the network. This is where Lightning Network comes in. Lightning Network is a peer-to-peer system for cryptocurrency micropayments that is focused on low latency, instant payments. They’re typically low cost, scalable and can work across chains, and transactions can be public or private.
The Lightning Network adds another layer to Bitcoin’s blockchain and enables users to create payment channels between any two parties on that extra layer. These channels can exist for as long as required, and because they’re set up between two people, transactions will be almost instant and the fees will be extremely low or even non-existent. It brings new possibilities for Bitcoin to be use as a new payment method.
Here's a video that explained it simply.
What is the Lightning Network? (Explained Simply) An article for you to easily understand how it works.
What Is Lightning Network And How It Works Segwit - Segregated Witness fixed an issue called transaction malleability. Every Bitcoin transaction has three parts: sender, recipient, digital signature (scriptSig). The scriptSig part of Segwit transactions is called the “witness data”. When Segwit transactions are sent to Legacy nodes the scriptSig is stripped. Segwit transactions put the scriptSig at the end. The key is that these “stripped” transactions are still valid transactions on Legacy nodes, which gives us a savings over non-Segwit transactions. This allows more transaction to be approved each time a block of transactions have been confirmed.
Here's a video that explained it simply.
What is Segwit? Segregated Witness Explained Simply 5G Network - 5G is the next generation of mobile broadband that will eventually replace, or at least augment, your 4G LTE connection. With 5G, you’ll see exponentially faster download and upload speeds. 5G and blockchain offer the promise of a potent combination. Blockchain can secure mobile banking networks that will have to secure transactions on a very granular level, while 5G itself will make sure these complex networks don’t strain under the weight of blockchains.
Here's a good read about 5G Network:
What is 5G? Blockchain and 5G Network
Blockchain and 5G: Greatest promise is to transform the developing world The terms I've included above are only those words I often see in the discussions today. There are a lot of terms in Bitcoin you need to understand. Here's a glossary you can always use:
A to Z: The Ultimate Cryptocurrency Glossary I hope this thread helps you stay interested and have longer patience in learning about bitcoin. If there's a word you want to add, basic or complicated, let us know! Try citing sources or try explaining it in simple terms. Let us all engage in an informative discussion for our newbies out there!
-GDragon
