Let's Go Over Some Cryptocurrency 101
What is Bitcoin?
Bitcoin sparked this flame igniting the world of finance. Back in 2009, fresh off the housing and financial crisis, a person by the fake name "Satoshi Nakamoto" published a paper on this new digital money called "Bitcoin".
- Digital currencies had come and gone before this, but unique to this method was its independence to any other form of money, its nature as something purely digital, and how it maintained scarcity while being digital.
- It's easy to duplicate a photo or some text online. Copy and paste, copy and paste. Send them out to as many people as we like. Bitcoin figured out how to send a digital item without the risk of duplication. This made it scarce, and potentially valuable--necessary attributes for money.
- A key reason bitcoin isn't something that can be counterfeited is because every transaction is public. No one can cook the books if everyone is looking. This aspect lends itself to bitcoin's security. Speed is another key benefit. The transference of this money is fast--and direct. One doesn't need a bank middleman to facilitate a payment. Person A simply send Person B his/her money. It's like the benefit of cash, only global.
- The immediate benefits to this are obvious: Who needs credit card companies taking 2-3%? Who needs money wire services taking 5% for sending money overseas? Why continue to use U.S. dollars that lose some value each year? And why not take advantage of the anonymity digital currencies provide?
- Since that paper and the rise of bitcoin, many, many other digital currencies have risen to specialize in their niche. Bitcoins remains the gold standards of the industry, though, commanding well over half of this industry's total value.
There's much more one can learn about bitcoin. How does one "send a bitcoin"? Where does is come from? To expand your knowledge of bitcoin, enjoy this tutorial from Coindesk.com: https://www.coindesk.com/learn/bitcoin-101/what-is-bitcoin
What are Digital Assets?
Digital assets are programmable assets to fuel the future of digital economy.
- Digital-assets is a class of programmable assets that exist in the form of electronic data to represent the ownership and value of underlying assets. With the development of the first and second generation blockchain, smart contracts and DApp, the friction of issuing and managing digital assets is reduced significantly.
- Crypto digital-assets is a sub category of digital-assets that is created, stored, exchanged, and managed in a decentralized computation network and free of intermediaries. The form of crypto digital-assets may be different from the traditional assets, but the heart of any crypto digital asset is no different than traditional assets which are entities used for capturing and storing value.
To learn more about digital assets, including categories and uses, click here.
What is a Digital Wallet?
A digital wallet is what you probably think it is. It's a place to hold your digital assets. There are many popular third party wallets such as Meta Mask, which have the advantage of being able to easily work across the web. There are also digital wallets made specifically for a particular website or service. Coinbase, for instance, has its own wallet. These wallets work seamlessly with their particular website, but often aren't useful outside of it.
- For DeFiner, we integrate the Meta Mask wallet, which is made explicitly for the Ethereum network. Any digital assets of yours not used in a peer-to-peer loan or deposited into our savings account, will remain your digital wallet.
Learn more about MetaMask in our Set-up here.