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WTF is Cryptocurrency?

What kind of Web3 blog would this be if we didn't cover cryptocurrency? At this point, you've likely heard of it, and you've likely heard a lot about it. You've probably heard about people becoming millionaires overnight because of crypto. Conversely, you've probably heard of a lot of scams involving crypto. But of course none of those stories tell you what it is. So, WTF is cryptocurrency?

Cryptocurrency is a type of digital money. It is different from regular money because it doesn't have a physical form, and it's not controlled by a government or a bank. Instead, it's based on something called a blockchain, which is a digital ledger that keeps track of all the transactions.

While there are thousands of cyrptocurrencies out there, we're just going to start with three.

Bitcoin

Bitcoin is a decentralized currency that allows for peer-to-peer transactions without the need for a centralized intermediary like a bank. Transactions are recorded on a public ledger called the blockchain, which is maintained by a network of users around the world. The key tenets of Bitcoin are decentralization, security, and scarcity. Bitcoin is designed to have a limited supply of 21 million coins, and the rate at which new coins are created is controlled by the protocol.

Ethereum

Ethereum is another cryptocurrency that was launched in 2015. Unlike Bitcoin, Ethereum is designed to be more than just a currency – it is a platform for building decentralized applications (dapps) on the blockchain. The key tenets of Ethereum are decentralization, security, and programmability. Ethereum uses smart contracts to automate transactions and enforce the rules of the network. It also has its own currency, called Ether, which is used to pay for transaction fees on the network.

Binance BNB

Binance BNB is a cryptocurrency that is used on the Binance exchange, which is one of the largest cryptocurrency exchanges in the world. BNB was launched in 2017 and is used to pay for trading fees on the Binance platform. The key tenets of Binance BNB are utility, demand, and supply. Binance has built a wide range of use cases for BNB, including discounts on trading fees, staking rewards, and payments for other services on the platform. This has created demand for BNB, which has driven up its value over time. The supply of BNB is limited, which has also contributed to its value.

Cryptocurrency is a type of digital money that uses cryptography to secure transactions and operates independently of traditional banking systems. Bitcoin, Ethereum, and Binance BNB are three of the most popular cryptocurrencies, each with their own unique features and tenets. Bitcoin is focused on decentralization, security, and scarcity; Ethereum is focused on decentralization, security, and programmability; and Binance BNB is focused on utility, demand, and supply.

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