A cryptocurrency, crypto-currency, or crypto is a collection of binary data which is designed to work as a medium of exchange. Individual coin ownership records are stored in a ledger, which is a computerized database using strong cryptography to secure transaction records, to control the creation of additional coins, and to verify the transfer of coin ownership.[1][2][3] Cryptocurrencies are generally fiat currencies, as they are not backed by or convertible into a commodity.[4] Some crypto schemes use validators to maintain the cryptocurrency. In a proof-of-stake model, owners put up their tokens as collateral. In return, they get authority over the token in proportion to the amount they stake. Generally, these token stakers get additional ownership in the token over time via network fees, newly minted tokens or other such reward mechanisms.
CRYPTO TERMINOLOGY FIAT Government issued currencies i.e.Ksh, Rand Naira, Dollar Eur pound yen etc. BLOCKCHAIN Cryptocurrency technology that keeps the system secure and decentralized. DEFI (Decentralized Finance) is an ecosystem that operates independently, free from third parties or exchanges. CEFI (Centralized Finance) has always been the standard for crypto trading before DEFI. CEFI involves the …
