Generic Overview of Cryptocurrency Concepts

What is a Cryptocurrency and Investment Management Why is Blockchain Technology Important? Division Common Features of Cryptocurrencies Common Features of Attributes Cryptocurrencies = Coin ownership is represented by entries on a digital i a Digital ledger, not by a physical token. V Decentralization = No single entity controls the currency. v Open Source = All source code is available freely online. Y _ Distributed = Each cryptocurrency uses a method for obtaining Consensus consensus on ownership without a central arbiter. Yi . = Coin ownership is not linked to real-world identities Pseudonymity within the blockchain. Y Cryptography = Several cryptographic techniques are used to verify (computerized encoding) transactions, protect identities, and limit supply. = Acryptocurrency is a decentralized digital coin. It allows users to make transactions and store money in a secure and pseudonymous manner. # All cryptocurrency transactions are recorded chronologically on a blockchain, which acts as the critical infrastructure underlying a cryptocurrency. « The process of verifying transactions and ensuring the validity of the blockchain is called “mining.” = Mining solves the “double-spending” problem that had plagued previous attempts to implement a digital currency. Source: Investment Strategy Group, http://cryptocurrencyfacts.com/how-does-cryptocurrency-work-2/ . 6 HOUSE_OVERSIGHT_025669