There are various options to create a new cryptocurrency from scratch. However, answers to some fundamental questions must first be provided: what is the purpose/requirements of the new cryptocurrency; what blockchain type is desired (Public, Open, Permissioned, etc.); what consensus mechanism is required; is creating a new blockchain required, or can an existing blockchain be…
Read moreA cryptocurrency exchange is a business that allows customers to trade cryptocurrencies or digital tokens for other assets, such as conventional fiat (fiat-to-crypto and vice-versa) and/or other digital currencies/tokens (crypto-to-crypto). Exchanges can be classified into: Centralized cryptocurrency exchanges, which are operated by a third party and Decentralized cryptocurrency exchanges (DEXs), designed in a manner that…
Read moreCryptography is the encryption mechanism used to secure cryptocurrency. This encryption is based off of algorithms that make sensitive information difficult to decipher. There are two types of cryptography: Symmetric cryptography is when encrypting and decrypting functions use the same key, whereas asymmetric cryptography utilizes two different keys.
Read moreThe difference between a custodial wallet and a non-custodial wallet is in who controls the private key. In custodial wallets, the private key is held by a third party (e.g., an exchange), while in non-custodial wallets the private key is held by the owner(s) of the wallet. Whoever controls the private key also controls the…
Read moreCustodial wallets are wallets where the private key is held by a third party (e.g., an exchange). Whoever controls the private key also controls the funds. When contracting with qualified and reputable custodians, custodial wallets can offer users increased security and formality over their assets. Custodial wallets may be more suitable for entry level users…
Read moreA Dark Market is a commercial website that operates via darknets such as Tor or I2P. They function primarily as black markets, selling or brokering transactions. Dark Markets include crypto addresses associated with individuals and organizations who sell or traffic human beings, illicit arms, counterfeit currency, forged documents, illegal narcotic drugs and psychotropic substances, unlicensed…
Read moreDash is an open source altcoin that was created from a fork in the Bitcoin Protocol. Dash was formerly known as Xcoin and Darkcoin, but rebranded itself as Dash (a portmanteau of “digital cash”) in 2015 after Darkcoin become associated with its prevalence amongst dark marketplaces. Dash runs on a proof of work consensus model,…
Read moreA Decentralized Exchange or DEX is a type of cryptocurrency exchange that operates in a decentralized manner and enables peer-to-peer crypto trading. Because DEXs are a type of DeFi application, they typically lack any KYC process. While the operations of Decentralized exchanges are decentralized, the scale of the governance decentralization varies greatly; some operators are…
Read moreDeFi stands for Decentralized Finance. DeFi purports to remove financial institutions or other centralized third-party institutions from a financial services platform. The financial products, services, and instruments are implemented in code via smart contracts and are made up of independent parts that are brought together without the use of traditional intermediaries like banks. DeFi structures…
Read moreA Digital Asset Customer is a Digital Asset Entity that uses the services of a bank or other formal financial institution. The term “DAC” was first used to describe a broad grouping of cryptocurrency-based customers in the U.S. Department of the Treasury’s OCC enforcement action against M.Y. Safra Bank in early 2020. Alternative names include…
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