𝐖𝐇𝐀𝐓 𝐈𝐒 𝐂𝐑𝐘𝐏𝐓𝐎𝐂𝐔𝐑𝐑𝐄𝐍𝐂𝐘

“𝐖𝐇𝐀𝐓 𝐈𝐒 𝐂𝐑𝐘𝐏𝐓𝐎𝐂𝐔𝐑𝐑𝐄𝐍𝐂𝐘”

►Cryptocurrency is a 𝐝𝐢𝐠𝐢𝐭𝐚𝐥 𝐨𝐫 𝐯𝐢𝐫𝐭𝐮𝐚𝐥 𝐜𝐮𝐫𝐫𝐞𝐧𝐜𝐲 that 𝐞𝐱𝐢𝐬𝐭𝐬 𝐨𝐧𝐥𝐲 𝐨𝐧𝐥𝐢𝐧𝐞 and uses cryptography to secure transactions.

►Unlike traditional money controlled by governments, cryptocurrencies run on decentralized networks 𝐮𝐬𝐢𝐧𝐠 𝐛𝐥𝐨𝐜𝐤𝐜𝐡𝐚𝐢𝐧—a public ledger managed by multiple computers.

►This peer-to-peer system allows direct payments without banks.

►Transactions are recorded permanently on the blockchain, and cryptocurrencies are stored in digital wallets. Bitcoin, launched in 2009, was the first and remains the most popular.

►Cryptocurrencies are fungible, meaning one unit is always equal to another of the same type, unlike NFTs(Non-Fungible Token) is a unique digital asset stored on a blockchain) , which have unique values.

►They offer faster payments, low fees, and independence from central authorities but face challenges like price swings, energy-intensive mining, and misuse in illegal activities.

“𝑭𝒊𝒓𝒔𝒕, 𝒘𝒆’𝒍𝒍 𝒄𝒐𝒗𝒆𝒓 𝒕𝒉𝒆 𝒌𝒆𝒚 𝒇𝒆𝒂𝒕𝒖𝒓𝒆𝒔 𝒂𝒏𝒅 𝒕𝒆𝒓𝒎𝒔 𝒐𝒇 𝒄𝒓𝒚𝒑𝒕𝒐𝒄𝒖𝒓𝒓𝒆𝒏𝒄𝒚, 𝒕𝒉𝒆𝒏 𝒆𝒙𝒑𝒍𝒂𝒊𝒏 𝒆𝒂𝒄𝒉 𝒐𝒏𝒆 𝒘𝒊𝒕𝒉 𝒆𝒂𝒔𝒚-𝒕𝒐-𝒖𝒏𝒅𝒆𝒓𝒔𝒕𝒂𝒏𝒅 𝒄𝒐𝒏𝒄𝒆𝒑𝒕𝒔 𝒂𝒏𝒅 𝒆𝒙𝒂𝒎𝒑𝒍𝒆𝒔.”

 

𝐊𝐄𝐘 𝐅𝐄𝐀𝐓𝐔𝐑𝐄𝐒 & 𝐅𝐀𝐂𝐓𝐒 𝐀𝐁𝐎𝐔𝐓 𝐂𝐑𝐘𝐏𝐓𝐎𝐂𝐔𝐑𝐑𝐄𝐍𝐂𝐘:

► 𝐈𝐧𝐯𝐞𝐧𝐭𝐨𝐫 𝐨𝐟 𝐁𝐢𝐭𝐜𝐨𝐢𝐧 – Bitcoin was invented by a person or group using the name 𝐒𝐚𝐭𝐨𝐬𝐡𝐢 𝐍𝐚𝐤𝐚𝐦𝐨𝐭𝐨 in 2008.

► “𝐒𝐚𝐭𝐨𝐬𝐡𝐢 𝐍𝐚𝐤𝐚𝐦𝐨𝐭𝐨” is a made-up name. No one knows whether it’s one person or a group of people. Their real identity is still a big mystery in the tech world.”

►𝐖𝐡𝐚𝐭 𝐒𝐚𝐭𝐨𝐬𝐡𝐢 𝐍𝐚𝐤𝐚𝐦𝐨𝐭𝐨 𝐝𝐢𝐝 ?

1)Published the Bitcoin whitepaper titled “Bitcoin: A Peer-to-Peer Electronic Cash System” on October 31, 2008.

2)Launched the Bitcoin network in January 2009.Mined the first-ever Bitcoin block, known as the Genesis Block or Block 0.

3)Mined around 1 million Bitcoins– Estimated to have mined over 1 million BTC, which remains untouched in known wallets (worth billions today).

4)Disappeared in 2011– After a few years of communication with early developers, Satoshi gradually stopped responding and vanished.

5)Communicated only online– All interactions were via email or forums. No phone calls, video, or in-person meetings ever confirmed.

6)Never touched the fortune– Despite holding billions worth of Bitcoin, none of Satoshi’s wallets have ever shown outgoing transactions.

►𝐋𝐨𝐠𝐢𝐜 𝐁𝐞𝐡𝐢𝐧𝐝 𝐂𝐫𝐲𝐩𝐭𝐨 :

The system works on decentralisation, proof of work (PoW) or proof of stake (PoS) mechanisms, and public-private key encryption.

► 𝐃𝐢𝐠𝐢𝐭𝐚𝐥-𝐎𝐧𝐥𝐲 :

Cryptocurrency doesn’t exist in any physical form like coins or notes; it’s 100% virtual.

► 𝐍𝐨 𝐂𝐞𝐧𝐭𝐫𝐚𝐥 𝐀𝐮𝐭𝐡𝐨𝐫𝐢𝐭𝐲:

It is decentralised, meaning there’s no central bank or government controlling it.

► 𝐏𝐞𝐞𝐫-𝐭𝐨-𝐏𝐞𝐞𝐫 𝐓𝐫𝐚𝐧𝐬𝐚𝐜𝐭𝐢𝐨𝐧𝐬 :

People can send and receive crypto directly without needing a bank or payment app in between.

► 𝐁𝐥𝐨𝐜𝐤𝐜𝐡𝐚𝐢𝐧 𝐓𝐞𝐜𝐡𝐧𝐨𝐥𝐨𝐠𝐲 :

Every transaction is recorded in a digital ledger called the blockchain, which is open and secure.

► 𝐔𝐬𝐞𝐬 𝐂𝐫𝐲𝐩𝐭𝐨𝐠𝐫𝐚𝐩𝐡𝐲:

Strong computer codes (encryption) are used to secure transactions and protect identities.

► 𝐅𝐚𝐬𝐭 & 𝐆𝐥𝐨𝐛𝐚𝐥 𝐓𝐫𝐚𝐧𝐬𝐟𝐞𝐫𝐬:

Money can be transferred across countries in minutes with very low transaction fees.

► 𝐌𝐢𝐧𝐢𝐧𝐠 𝐏𝐫𝐨𝐜𝐞𝐬𝐬:

New cryptocurrencies (like Bitcoin) are created through mining, where powerful computers solve complex problems to validate transactions.

►𝐂𝐫𝐲𝐩𝐭𝐨 𝐖𝐚𝐥𝐥𝐞𝐭𝐬:

Used to store your crypto. They can be:

a)𝐇𝐨𝐭 𝐖𝐚𝐥𝐥𝐞𝐭𝐬: Connected to the internet (e.g. apps, websites)

b)𝐂𝐨𝐥𝐝 𝐖𝐚𝐥𝐥𝐞𝐭𝐬:Offline and more secure (e.g. hardware wallets)

► 𝐃𝐢𝐟𝐟𝐞𝐫𝐞𝐧𝐭 𝐓𝐲𝐩𝐞𝐬 𝐨𝐟 𝐂𝐫𝐲𝐩𝐭𝐨:

1)𝐁𝐢𝐭𝐜𝐨𝐢𝐧 (BTC): The first and most famous crypto

2)𝐀𝐥𝐭𝐜𝐨𝐢𝐧𝐬: Any coin other than Bitcoin (e.g. Litecoin, Cardano, Dogecoin)

3)𝐒𝐭𝐚𝐛𝐥𝐞𝐜𝐨𝐢𝐧𝐬: Tied to the value of real currency like USD (e.g. USDT, USDC)

4)𝐓𝐨𝐤𝐞𝐧𝐬: Built on other blockchains (e.g. Shiba Inu on Ethereum)

► 𝐓𝐡𝐨𝐮𝐬𝐚𝐧𝐝𝐬 𝐨𝐟 𝐂𝐫𝐲𝐩𝐭𝐨𝐜𝐮𝐫𝐫𝐞𝐧𝐜𝐢𝐞𝐬 :

As of today, there are 10,000+ cryptocurrencies. Some popular ones include:

a)Bitcoin (BTC)

b)Ethereum (ETH)

c)Binance Coin (BNB)

d)Solana (SOL)

e0Ripple (XRP)

► 𝐌𝐨𝐬𝐭 𝐄𝐱𝐩𝐞𝐧𝐬𝐢𝐯𝐞 𝐂𝐫𝐲𝐩𝐭𝐨𝐜𝐮𝐫𝐫𝐞𝐧𝐜𝐲 :

Bitcoin remains the costliest and most well-known crypto in the world (valued at thousands of dollars per coin).

► 𝐂𝐫𝐲𝐩𝐭𝐨 𝐄𝐱𝐜𝐡𝐚𝐧𝐠𝐞𝐬:

Platforms where you can buy, sell, and trade crypto (e.g. Binance, Coinbase, WazirX).

► 𝐕𝐨𝐥𝐚𝐭𝐢𝐥𝐢𝐭𝐲:

Crypto prices can change rapidly, making it high-risk but also high-reward.

► 𝐍𝐅𝐓𝐬 (Non-Fungible Tokens):

Unique digital items stored on the blockchain, like art, music, or collectibles.

► 𝐇𝐎𝐃𝐋 :

A slang word in crypto meaning “Hold On for Dear Life” — used when investors decide to keep holding their coins, no matter the price.

 

𝐇𝐎𝐖 𝐃𝐎𝐄𝐒 𝐂𝐑𝐘𝐏𝐓𝐎𝐂𝐔𝐑𝐑𝐄𝐍𝐂𝐘 𝐖𝐎𝐑𝐊? 𝐀𝐍𝐃 𝐓𝐇𝐄 𝐓𝐄𝐑𝐌𝐒 𝐄𝐗𝐏𝐋𝐀𝐈𝐍𝐄𝐃 𝐔𝐒𝐈𝐍𝐆 𝐄𝐗𝐀𝐌𝐏𝐋𝐄𝐒 :

► 𝐇𝐨𝐰 𝐃𝐨𝐞𝐬 𝐂𝐫𝐲𝐩𝐭𝐨𝐜𝐮𝐫𝐫𝐞𝐧𝐜𝐲 𝐖𝐨𝐫𝐤?

(Have used real life scenario to explain the concept , logic and terminologies )

► 𝐓𝐡𝐞 𝐒𝐭𝐨𝐫𝐲: Why TownCoin Was Created:

In a small town, people trade items like rice for vegetables. But this system causes problems:

People argue about values of items.

Someone might cheat and claim, “I already gave you my goods.”

There’s no fair record of who owes what.

So, a group of friends decides to create a 𝐝𝐢𝐠𝐢𝐭𝐚𝐥 𝐦𝐨𝐧𝐞𝐲 𝐬𝐲𝐬𝐭𝐞𝐦 𝐜𝐚𝐥𝐥𝐞𝐝 𝐓𝐨𝐰𝐧𝐂𝐨𝐢𝐧 to make trade fair, transparent, and easy.

► 𝐂𝐫𝐲𝐩𝐭𝐨𝐜𝐮𝐫𝐫𝐞𝐧𝐜𝐲 (𝐓𝐨𝐰𝐧𝐂𝐨𝐢𝐧):

TownCoin is a cryptocurrency — digital money that exists only on computers and mobile phones, not as coins or notes. It’s used for secure online transactions.

► ” 𝐒𝐜𝐞𝐧𝐚𝐫𝐢𝐨”

“John gives Sara 5 TownCoins”

► 𝐇𝐨𝐰 𝐭𝐡𝐞 𝐓𝐫𝐚𝐧𝐬𝐚𝐜𝐭𝐢𝐨𝐧 𝐆𝐞𝐭𝐬 𝐑𝐞𝐜𝐨𝐫𝐝𝐞𝐝:

► 𝐓𝐫𝐚𝐧𝐬𝐚𝐜𝐭𝐢𝐨𝐧 𝐒𝐭𝐚𝐫𝐭𝐬:

John wants to give 5 TownCoins to Sara

He uses his digital wallet to send the coins.

The transaction is broadcast to the entire TownCoin network (all the computers connected).

► 𝐖𝐡𝐨 𝐑𝐞𝐜𝐨𝐫𝐝𝐬 𝐈𝐭 𝐅𝐢𝐫𝐬𝐭?

Miners are the first to pick up this transaction.

A miner’s job is like being the accountant of the blockchain — they collect many transactions (like John→ Sara, Jake → Thomas) and try to put them into the next block.

► 𝐖𝐡𝐲 𝐃𝐨 𝐌𝐢𝐧𝐞𝐫𝐬 𝐒𝐨𝐥𝐯𝐞 𝐏𝐮𝐳𝐳𝐥𝐞𝐬?

Before the block can be added to the blockchain, miners must lock it with a digital code (hash).

The hash is like a seal that proves all the transactions inside the block are correct and haven’t been tampered with.

► 𝐓𝐡𝐞 𝐋𝐨𝐠𝐢𝐜 𝐨𝐟 𝐭𝐡𝐞 𝐏𝐮𝐳𝐳𝐥𝐞:

Think of the puzzle like this:A miner needs to find a secret number called a nonce (short for “number used once”).

When this nonce is added to all the transaction data (like “John gives Sara 5 TownCoins”), the result must produce a hash (a long string like 0000a93fdc…) that starts with a certain number of zeros (e.g., 0000).

► 𝐖𝐡𝐲 𝐈𝐬 𝐈𝐭 𝐇𝐚𝐫𝐝?

There is no shortcut to finding the correct nonce.

The miner’s computer guesses millions of numbers per second and checks if the hash starts with the required zeros.

It’s like trying random keys to unlock a safe — the only way to find the right key is by trying again and again.

► 𝐖𝐡𝐚𝐭 𝐡𝐚𝐩𝐩𝐞𝐧𝐬 𝐰𝐡𝐞𝐧 𝐚 𝐌𝐢𝐧𝐞𝐫 𝐒𝐨𝐥𝐯𝐞𝐬 𝐈𝐭:

a)The first miner who finds the right nonce and creates a valid hash announces: “I solved the puzzle! This block is ready!”

b)Other miners quickly check if the solution is correct (easy to verify).

c)If correct, the block (with John → Sara transaction) is added permanently to the blockchain.

► 𝐌𝐢𝐧𝐞𝐫’𝐬 𝐑𝐞𝐰𝐚𝐫𝐝:

a)The miner who solved the puzzle gets new TownCoins as a reward (e.g., 5 coins).

b)This is how new coins are created — and why mining is profitable.

► 𝐑𝐞𝐚𝐥-𝐖𝐨𝐫𝐥𝐝 𝐀𝐧𝐚𝐥𝐨𝐠𝐲 𝐟𝐨𝐫 𝐭𝐡𝐞 𝐏𝐮𝐳𝐳𝐥𝐞:

Imagine you want to put John’s transaction into a locked box.

To lock it, you need a special 6-digit code that starts with “000.”

There’s no formula to find the code — you have to try random codes (001234, 009876, etc.) until one works, like “000457.”

Once found, you share this code with everyone, and they confirm it works.

This is exactly how the mining puzzle (hashing) works.

► 𝐁𝐥𝐨𝐜𝐤𝐜𝐡𝐚𝐢𝐧:

“The first miner who finds the right nonce and creates a valid hash announces: ‘I solved the puzzle! This block is ready!’ At that moment, the block—containing all verified transactions—is permanently added to the blockchain, forming a new link in the chain.”

Whenever someone spends TownCoins (e.g., “John gives Sara 5 TownCoins”), the transaction is written into a public digital notebook called a blockchain.

Each page of this notebook is a block.

Once a page is full, it’s sealed and added to a chain of blocks.

This makes it permanent and tamper-proof.

► 𝐖𝐚𝐥𝐥𝐞𝐭:

Each friend gets a digital wallet — like a mobile app or USB drive — to store their TownCoins.

There are two types:

𝟏)𝐇𝐨𝐭 𝐖𝐚𝐥𝐥𝐞𝐭: Connected to the internet (like a phone app).

𝟐)𝐂𝐨𝐥𝐝 𝐖𝐚𝐥𝐥𝐞𝐭: Offline (like a USB device).

► 𝐏𝐮𝐛𝐥𝐢𝐜 𝐊𝐞𝐲 & 𝐏𝐫𝐢𝐯𝐚𝐭𝐞 𝐊𝐞𝐲

Each wallet has:

𝟏)𝐀 𝐩𝐮𝐛𝐥𝐢𝐜 𝐤𝐞𝐲 (like your account number) to receive money.

𝟐)𝐀 𝐩𝐫𝐢𝐯𝐚𝐭𝐞 𝐤𝐞𝐲(like your password) that must be kept secret.

If someone gets your private key, they can take your coins.

► 𝐃𝐞𝐜𝐞𝐧𝐭𝐫𝐚𝐥𝐢𝐬𝐚𝐭𝐢𝐨𝐧:

The blockchain notebook isn’t stored by one person or a bank. Everyone in the town keeps a copy, so no single person controls it.This is called decentralisation.

► 𝐄𝐱𝐜𝐡𝐚𝐧𝐠𝐞:

If someone wants to buy more TownCoins or sell them for cash, they go to an exchange — a digital shop where coins are traded.

► 𝐀𝐥𝐭𝐜𝐨𝐢𝐧𝐬:

TownCoin is just one type of coin.There are thousands of others — Bitcoin (the first and most famous), Ethereum, Dogecoin, Solana — all called altcoins (alternative coins).

► 𝐓𝐨𝐤𝐞𝐧𝐬:

Imagine the town is hosting a Spring Fair with games, food stalls, and concerts.

Instead of using real TownCoins for everything, the organisers decide to issue “FairTokens.”

1 FairToken = 1 ride or 1 game entry.

These FairTokens work only inside the fair, but they are built on the same TownCoin system (blockchain).

► 𝐇𝐨𝐰 𝐓𝐨𝐤𝐞𝐧𝐬 𝐃𝐢𝐟𝐟𝐞𝐫 𝐟𝐫𝐨𝐦 𝐓𝐨𝐰𝐧𝐂𝐨𝐢𝐧?

TownCoin is like the town’s main currency — it can be used everywhere in town.

Tokens are special-purpose digital passes that represent something else (like access, points, or rewards).

Tokens don’t have to be a currency — they can stand for tickets, coupons, or memberships.

► 𝐒𝐦𝐚𝐫𝐭 𝐂𝐨𝐧𝐭𝐫𝐚𝐜𝐭𝐬:

Rules like “If Simon plants 10 trees, he automatically gets 3 TownCoins” are written into smart contracts — self-executing rules on the blockchain.

► 𝐆𝐚𝐬 𝐅𝐞𝐞𝐬:

Whenever someone sends TownCoins, they pay a small fee to miners for verifying the transaction. This is like a toll fee and is called a gas fee.

► 𝐒𝐭𝐚𝐛𝐥𝐞𝐜𝐨𝐢𝐧:

To avoid sudden price changes, they create a Stablecoin tied to ₹1 or $1. This value never changes, unlike regular TownCoins.

They are “tied” (or pegged) to real money like US Dollars or other stable assets like gold.

► 𝐍𝐅𝐓𝐬:

A local artist sells a unique digital painting and says, “The ownership of this painting is recorded on the blockchain.”

This is called an NFT (Non-Fungible Token) — each one is unique and cannot be replaced.

► 𝐕𝐨𝐥𝐚𝐭𝐢𝐥𝐢𝐭𝐲:

One day everyone wants TownCoins, and the price shoots up. Another day no one wants it, and the price drops.

This price swing is called volatility.

 

𝐈𝐌𝐏𝐎𝐑𝐓𝐀𝐍𝐂𝐄 𝐎𝐅 𝐔𝐍𝐃𝐄𝐑𝐒𝐓𝐀𝐍𝐃𝐈𝐍𝐆 𝐂𝐑𝐘𝐏𝐓𝐎 𝐀𝐍𝐃 𝐁𝐋𝐎𝐂𝐊𝐂𝐇𝐀𝐈𝐍:

► 𝐃𝐢𝐠𝐢𝐭𝐚𝐥 𝐓𝐫𝐚𝐧𝐬𝐟𝐨𝐫𝐦𝐚𝐭𝐢𝐨𝐧: Cryptocurrency and blockchain are redefining how money, data, and trust are managed in a global digital economy.

► 𝐁𝐞𝐲𝐨𝐧𝐝 𝐏𝐚𝐲𝐦𝐞𝐧𝐭𝐬: Blockchain is not limited to crypto—it powers secure and transparent record-keeping across industries.

► 𝐀𝐩𝐩𝐥𝐢𝐜𝐚𝐭𝐢𝐨𝐧𝐬 𝐨𝐟 𝐁𝐥𝐨𝐜𝐤𝐜𝐡𝐚𝐢𝐧:

1)𝐋𝐨𝐠𝐢𝐬𝐭𝐢𝐜𝐬: Real-time tracking of goods.

2)𝐇𝐞𝐚𝐥𝐭𝐡𝐜𝐚𝐫𝐞: Secure storage of patient records.

3)𝐒𝐮𝐩𝐩𝐥𝐲 𝐂𝐡𝐚𝐢𝐧 𝐌𝐚𝐧𝐚𝐠𝐞𝐦𝐞𝐧𝐭: Verifying product authenticity and movement.

4)𝐑𝐞𝐚𝐥 𝐄𝐬𝐭𝐚𝐭𝐞:Automated property transfers via smart contracts.

5)𝐅𝐢𝐧𝐚𝐧𝐜𝐞: Enabling faster, low-cost transactions globally.

► 𝐅𝐮𝐭𝐮𝐫𝐞 𝐏𝐨𝐭𝐞𝐧𝐭𝐢𝐚𝐥:

Blockchain promises decentralized, transparent, and efficient systems across various sectors.

► 𝐌𝐚𝐢𝐧𝐬𝐭𝐫𝐞𝐚𝐦 𝐀𝐝𝐨𝐩𝐭𝐢𝐨𝐧:

Cryptocurrencies are expected to become key for global payments, investments, and digital asset ownership.

“𝑼𝒏𝒅𝒆𝒓𝒔𝒕𝒂𝒏𝒅𝒊𝒏𝒈 𝒄𝒓𝒚𝒑𝒕𝒐𝒄𝒖𝒓𝒓𝒆𝒏𝒄𝒚 𝒂𝒏𝒅 𝒃𝒍𝒐𝒄𝒌𝒄𝒉𝒂𝒊𝒏 𝒊𝒔 𝒆𝒔𝒔𝒆𝒏𝒕𝒊𝒂𝒍 𝒕𝒐𝒅𝒂𝒚, 𝒂𝒔 𝒕𝒉𝒆𝒚 𝒂𝒓𝒆 𝒓𝒆𝒔𝒉𝒂𝒑𝒊𝒏𝒈 𝒇𝒊𝒏𝒂𝒏𝒄𝒆 𝒂𝒏𝒅 𝒕𝒆𝒄𝒉𝒏𝒐𝒍𝒐𝒈𝒚. 𝑲𝒏𝒐𝒘𝒊𝒏𝒈 𝒕𝒉𝒆𝒔𝒆 𝒄𝒐𝒏𝒄𝒆𝒑𝒕𝒔 𝒉𝒆𝒍𝒑𝒔 𝒚𝒐𝒖 𝒔𝒕𝒂𝒚 𝒊𝒏𝒇𝒐𝒓𝒎𝒆𝒅 𝒂𝒏𝒅 𝒓𝒆𝒂𝒅𝒚 𝒇𝒐𝒓 𝒕𝒉𝒆 𝒅𝒊𝒈𝒊𝒕𝒂𝒍 𝒇𝒖𝒕𝒖𝒓𝒆.”