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Change Address

A UTXO system like Bitcoin treats crypto similarly to physical cash. Let’s say that Bob has 2 Bitcoins. Bob wants to give Alice 1.75 bitcoin. Bob’s wallet first unlocks his UTXO of 2 bitcoins and uses this whole 2 bitcoin UTXO as input to the transaction. If this transaction had a .05 BTC transaction fee…

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CoinJoin and SharedCoin

CoinJoin and SharedCoin: CoinJoin is an anonymization method for bitcoin transactions proposed by Gregory Maxwell. The following idea is behind CoinJoin: “When you want to make a payment, find someone else who also wants to make a payment and make a joint payment together”. In case of such a joint payment there will be no…

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Consensus

Consensus is a mechanism, usually used by most nodes on the network, all having the same blocks in their locally-validated blockchain, to achieve the necessary agreement regarding the state of the distributed network.  

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Create Cryptocurrency from Scratch

There are various options to create a new cryptocurrency from scratch, however, answers to some fundamental questions must first be provided:  Consider what is the purpose/requirements of the new cryptocurrency, Select the blockchain type: Public, Open, Permissioned etc.  Select a consensus mechanism based on the requirements,  Consider whether it will require to create a new blockchain or use…

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Crypto Dusting

Crypto Dusting is a cryptocurrency privacy attack that sees malicious actors sending a very small amounts of coins—typically referred to as “dust”—to identify the person or entity that controls the wallet. The value of dust is below the threshold required to execute a valid transaction so users must consolidate the dust to exact a trade.…

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Crypto Reflection Meaning

Reflection tokens (sometimes called reward tokens) are cryptocurrencies that reward holders with new tokens in their wallets, by employing a mechanism in which transactions are taxed and a percentage of the tax charged is redistributed to holders of the token. Source: https://www.axi.com/uk/blog/education/blockchain/reflection-tokens

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Crypto Staking

The term is used for cryptocurrencies that run on a Proof of Stake blockchain.  Contrary to Bitcoin’s Proof of Work consensus mechanism, in which the nodes (participants) are required to solve a difficult mathematical problem requiring energy intense computer resources, being incentivized via the block reward, with proof-of-stake, users validate transactions according to how many coins…

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Crypto Terminology

The list of crypto terminology can be extended endlessly. Some of the most used tems are: Blockchain, Hash, Mining, Consensus Algorithms, Proof of Work, Proof of Stake, Node, Hard/Soft Forks, 51% attack, Node, Wallets (desktop, mobile, hardware, paper), Hot/cold storage,  Tokens and their taxonomy (Payment, Utility, Security Tokens), Fungible and Non-Fungible Tokens (NFTs),  Smart Contracts, Gas and…

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Cryptocurrency

A cryptocurrency (or crypto currency) is a digital asset designed to work as a medium of exchange using cryptography to secure the transactions and to control the creation of additional units of the currency. Cryptocurrencies are a subset of alternative currencies, or specifically of digital currencies. Distributed Ledger Technology (DLT)-based digital assets are a superset…

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Cryptocurrency Coding

Various programming languages are being used for cryptocurrency coding: Solidity (associated with smart contracts), Java (NEM, IOTA, NEO, Hyperledger Fabric are using JaVA), Python, Java Script, C++, Go, Ruby etc. 

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