CRYPTOCURRENTY … Frequently Asked Questions
Computer Studio Limited
What is Cryptocurrency?
Cryptocurrency (also known as Cryptocoins) is an open-source de-centralised ‘peer-to-peer’ protocol digital currency, which relies on the principles of cryptography to validate transactions and for the generation of the currency itself.
What exactly is digital currency?
Digital currency is, in effect, ‘electronic money’ that acts as an alternative currency in the digital (on-line) realm. Current trends also show that it is also being rapidly adopted off-line. These alternative digital currencies are not produced by any government-endorsed central banks nor are they necessarily backed by any national currency.
What are Altcoins?
Cryptocurrency alternatives to, and which differ in one way or another from, the original Bitcoin. All of these coins are made by software developers.
What does de-centralised mean?
This term refers to the ‘peer-to-peer’ architecture of the network itself. Due to the fact that each connection point or ‘gateway’ (known as a node) can act as both a ‘server’ and a ‘client’, there is no need for a central server or centralised authority, thereby proving itself as a very effective solution to the ‘double spend’ problem. De-centralisation allows for greater security and freedom, as every transaction is validated by ‘miners’, the users of mining pools.
What does peer-to-peer mean?
Peer-to-peer refers to each connection point/gateway (node) on the network having the ability to connect to any other node and act as both a ‘server’ and a ‘client’ sharing updates to the blockchain without the need for a central server.
What is meant by the principles of cryptography?
Cryptography relies on public and privately encrypted keys. For the strictest security and well understood principles of cryptography, every transaction must be signed by a privately encrypted key, making the counterfeiting of digital currencies a virtual impossibility.
How is a cryptocoin network made up?
The network consists of users. There is no ‘middle man’ or agent that is required between you and whoever you’re trading with.
What is a block?
This is a pre-defined number of coins to be mined, as decided by each individual coin developer.
What is a blockchain?
A historical record of all transactions and blocks relating to a particular currency.
What is a cryptocoin/cryptocurrency wallet?
This is an on-line wallet and is similar to owning your own personal bank account that you have total freedom with to make transactions as you please, according to the coins contained therein. Different forms of wallets are available from many sites, usually for free download, such as Desktop, Mobile or Web wallets. It is basically a program or webservice that allows users to centrally store and control their own digital currency. Whilst most wallets are for single cryptocurrency use, there are a few available that allow for the storage of multiple currencies.
WARNING! It is important that you take all responsible measures to keep your wallets safe and secure — back them up regularly and encrypt them with complex coding that cannot be easily guessed to prevent loss or hacking. Keep your encrypted passwords safe too as any loss of wallets backups or passwords means loss of all coins within them.
How safe is the cryptocurrency in my wallet/s?
As safe as you (the user) want it to be, mainly based on your own regularity of the backing up of your wallets and keeping them and their passwords safe.
WARNING! When making transactions any money sent out of a wallet is IRRITREIVABLE. It is crucial, therefore, to make doubly sure (even triply sure) that your money is being sent to the correct wallet address.
What does it mean to mine a cryptocurrency?
To use the power of your computer or graphics card to locate cryptocoins on their creation.
What is a mining pool?
It is a server that allows a group of people, known as ‘miners’, to combine their efforts in a common quest for a coin block.
Visit our mining pools :
http://doge.smartcoinpools.com
DISCLAIMER
You expressly agree that the use of Computer Studio Limited’s (and any subsidiary companies’) websites and blogs is at your sole risk, and that the services provided are on an “AS IS” and “AS AVAILABLE” basis. To the maximum extent allowed by applicable law, Computer Studio Limited (and any subsidiary companies’) expressly disclaims all conditions and warranties of any kind, express or implied by law, custom or otherwise, including without limitation any warranty of merchantability, satisfactory quality, fitness for a particular purpose, or non infringement. Computer Studio Limited (and any subsidiary companies’) makes no guarantee, regarding any products or services purchased or obtained through the service or any transactions entered into through the service.
PLEASE NOTE : This statement applies to and affects ALL of our Terms and Conditions and by using our websites, blogs, products and services you are confirming to have read and accepted such.
