Sirwin
Sirwin

The history of the cryptocurencies - how everything started


Motto: "Those who cannot remember the past are condemned to repeat it." (Santayana)

In case you do not know, everything started with the 2008 financial crisis, when Satoshi Nakamoto (him/her/them having close ties with the cyberpunk movement) exposes on a cryptography forum the Whitepaper for bitcoin. Own your money, no one to rule over the network (no ring to rule them all - but now you take decentralisation per granted) and imutable data (no delete button). Bitcoin will have a halving every 4 years on average (the mining block will be reduced to half the number of mined Bitcoins - started with 50, then 25, 12.5 and now we are on 6.25 Bitcoins per mined block). The supply will be only 21 millions and the mining time is 10 minutes per block. You will store them Bitcoins in a digital wallet, with a public key (the identifier for the network) and a private key (kept safely, this one provide control over your bitcoins, so you can see that anyone asking for private key is just a scammer). 

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After a while, because the code for bitcoin is open source, other cryptocurrencies started to appear, and the first ones were similar to the bitcoin. They were called altcoins - any other crypto that it is not bitcoin. In 2011, Charlie Lee decided to leave his job at Coinbase (Yes, that Coinbase) in order to develop Litecoin, a lighter version of Bitcoin, to be used for smaller day to day transactions. Litecoin is 4 times faster than Bitcoin, the block mining time is 2.5 minutes, and the supply is 4 times bigger. Litecoin uses a different algorithm called Scrypt (as opposed to Bitcoin SHA 256, but it is still Proof of Wok - PoW algorithm), and it has a similar halving time (4 years). The average transaction cost per 1 LTC is $0.04 (as opposed to Bitcoin $1.50 transaction cost). LTC market cap is 3 billions dollars as per today 31.05.2020. 

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Then Ethereum was launched. Vitalik Buterin, an young mathematician, wrote the Whitepaper in 2013, introducing the notion of Smart Contract (a set of pre-coded rules). You need to pay a fee in Ether in order to use the Ethereum network, but this one is more programmable than Bitcoin network. Launched in July 2015, Ethereum was one of the first ICO (initial coin offering) and the price for 1 ETH at that moment was $0.30. The aim was for ETH to become a 'world computer', developer friendly, censorship resistant, and it has the biggest developing community (as anyone can make their own Decentralised Apps - DAPPS for the cost of few dollars). The programmable language is called Solidity, a specifically one for Ethereum network, similar with Java language. I was mentioning the Smart contract - this is a coded set of rules that will initiate operations once certains conditions are met. Their use is limited only by your imagination. The smart contracts evolved into DAPPS, every DAPP uses smart contracts (pieces of code), are developed by teams, and are running on the blockchain. The most famous one was Cryptokitties, an app so popular that almost used the network at its limit, creating congection for months (their cat avatars were selling for up to $100.000). All the dapps are mainly used for financial reasons, but they can be also made as games, gambling platforms and many other options are there in the open field. While Bitcoin is currency orriented, the Ethereum network uses ether for gas fee to create apps. Very soon ETH will move from Proof of Work (ETIHASH is a different consensus algorithm used for the ETH network at the moment) to Proof of Stake, drastically reducing the electricity cost. The transaction cost for 1 ETH is $0.12, and the block mining time is 15 seconds. There is no maxim supply, and this is needed for the network to keep working. One of the ETH network key feature is the ability to mint tokens (ETH, BTC both of them are tokens) and these tokens are tradeabla on different exchanges, can be stored on wallets and be programmed using different token standards (most used is ERC20, but there are others too - ETC721, ERC 31337 and so on). 

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I was talking about ICOs. An initial coin offering is a project raising money selling tokens (like an initial public offering in real life, offering shares for money). First ICO was made for Mastercoin (OMNI), but the first big ICO was the one made for Ethereum. Biggest ICO ever was the one made for EOS - 4.2 billions. During those early years (2014-2017) many ICO promised, but very few delivered. It was the Wild West period of crypto, and the regulators were not ready. Because of all the scams, they are hostile to crypto even not. After 2018, the ICO idea started to fade away. Competition started to appear for the Ethereum network (Tron, EOS, Binance chain, Cosmos, Algorand). 2019-2020 is the moment marking the apparition of the DEFI movement (DEFI =decentralised finance), and the ones that i use at the moment are Celsius.Network and BlockFi, both offering much better interest than the bank.  

 

I hope you enjoy this little story today. Take care and be safe!

G. 

 

 

My crypto-related links  

 

Exchanges

Binance( good for staking/savings ) - link here

Kucoin( good for staking/savings ) - link here

Coinbase( ideal for beginners )- link here  

 

Investments

BlockFi (decent interest rates, but less choices than Celsius) - link here

Eobot (mining/wallet )- link here 

Celsius.network (good rates of interests and monthly promo codes for free cryptocurrencies, 1235256530 => my referral for $10 bonus  )- link here

Coinbundle (investing in crypto bundles) - link here  

MyCointainer (staking and masternodes for some new emerging coins) - link here

 

Wallets for multiple cryptocurrencies

Coinpot - link here (microwallet for all Moon faucets, Bitfun and Bonusbitcoin)

Atomic wallet - link here (microwallet for Publish0x DAI, BAT and Loopring)

Sphere  wallet (for Horizen, combined with the faucet for extra bonus) - link here  

 

Free crypto (faucets and more)

Bitfun( 3 min countdown - automatically deposit to Coinpot wallet ) - link here

Bonusbitcoin( 15 min countdown - automatically deposit to Coinpot wallet ) - link here

Moon Bitcoin ( 5 min countdown - automatically deposit to Coinpot wallet ) - link here

Moon Bitcoin Cash ( 5 min countdown - automatically deposit to Coinpot wallet ) - link here

Moon Litecoin ( 5 min countdown - automatically deposit to Coinpot wallet ) - link here

Moon Dogecoin ( 5 min countdown - automatically deposit to Coinpot wallet ) - link here

Moon Dash ( 5 min countdown - automatically deposit to Coinpot wallet ) - link here

Horizen faucet ( 20 hours countdown - automatically deposit to Sphere wallet ) - link here

Tezos  faucet ( 7 days countdown - automatically deposit to Coinbase or Binance wallet ) - link here

Tron and other crypto faucet (24 hours countdown) - link here  

EarnCrypto.com - paid for survey, videos and typing - link here

 

Others

Publish0x  blog (Free BAT, DAI and Loopring for reading/writing - can combine with Atomic wallet) - link here

Brave  browser (Free BAT for using it, based on paid ads, very good AdBlocker and high speed) - link here    

 

Disclaimer: This text also can be re-published on my personal blogs, such as this one.

 

 

 

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Heruvim78
Heruvim78

I am a writer, gamer, healthcare professional. I am.


Crypto - I tested it, so you didn't need to...
Crypto - I tested it, so you didn't need to...

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