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LECTURE NOTE

1. MEANING & HISTORY OF

Blockchain is defined as a decentralized peer to peer digital of transactions that is secured, duplicated and distributed across the entire network of computer systems. The blockchain system records information in a way that makes it impossible to change, cheat or hack the system.

History of Blockchain Technology It is important for every Blockchain enthusiasts and aspirants to know about the history of Blockchain and how it has evolved overtime.

Blockchain technology was first outlined by Stuart Haber and W. Scott Stornetta, the two researchers envisioned what many people have come to know as blockchain, in 1991. They implemented a system of working on a cryptographically secured chain of blocks whereby no one could tamper with timestamps of documents. We can actually say that Blockchain was invented in 1991.

In 1992, they upgraded their system to incorporate Merkle trees that enhanced efficiency thereby enabling the collection of more documents on a single block. However, it is in 2008 that Blockchain History starts to gain relevance, thanks to the work one person or group by the name Satoshi Nakamoto did.

Satoshi Nakamoto is accredited as the brain behind blockchain technology. Very little is known about Nakamoto as people believe he could be a person or a group of people that worked on , the first application of the digital ledger technology. Nakamoto conceptualized the first blockchain in 2008 from where the technology has evolved and found its way into many applications beyond . Satoshi Nakamoto released the first whitepaper about the technology in 2009. In the whitepaper, he provided details of how the technology was well equipped to enhance digital trust given the decentralization aspect that meant nobody would ever be in control of anything.

Ever since Satoshi Nakamoto exited the scene and handed over Bitcoin development to other core developers, the digital ledger technology has evolved resulting in new applications that make up the blockchain History.

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2. MEANING & HISTORY OF CRYPTOCURRENCY

A cryptocurrency is a digital or that is secured by , which is the art of writing or solving codes, which makes it nearly impossible to counterfeit or double-spend. Cryptocurrencies are decentralized networks that is distributed across a larger number of computers. This decentralized structure allows them to exist outside the control of governments and central authorities.

Cryptocurrencies allow for secure payments online which are denominated in terms of virtual "tokens", which makes it easy to transfer funds directly between two parties, without the need for a third party like bank or a company. These transfers are instead secured by the use of public keys and private keys and different forms of incentive systems, like or

HISTORY OF CRYPTOCURRENCY

The first decentralized cryptocurrency, bitcoin, was created In 2009 by Satoshi Nakamoto, whose identity is still secret. He was not the first person who came up with the idea to create it and the intention behind the creation of cryptocurrency is to create a new way of payment that could be used internationally, decentralized and without having any financial institution or government as an intermediary. What drove him to create this was that big economic crisis that affected millions of citizens and also, the need to make people see that there is another type of money, which is not the conventional one, that you can also use and benefit from it.

3. BITCOIN

Bitcoin is a decentralized digital or virtual currency created in January 2009 that uses peer to peer technology to facilitate instant payments without an intermediary or third parties like bank and governments. All bitcoin transactions are verified by a massive amount of computing power. Bitcoin is also a type of cryptocurrency that is very popular and has triggered the launch of more than 5000 cryptocurrencies in existence today collectively referred to as altcoins. Bitcoin was created by Satoshi Nakamoto, who originally described the need for an electronic payment system based on cryptographic proof instead of trust.

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4. ALTCOIN

Altcoin is any digital cryptocurrency similar to Bitcoin. It is an alternative to Bitcoin and is used to describe any cryptocurrency that is not a Bitcoin. They share characteristics with Bitcoin but are also different from them in other ways. Altcoins are created by diverging from Bitcoin consensus rules (the fundamental rules of the cryptocurrency’s network) or by developing a new cryptocurrency from scratch.

Most popular altcoins use the same fundamental building blocks as Bitcoin. This approach is relatively easy to carry out because Bitcoin is a free, open source platform.

5. CRYPTO TRADING ROBOT

A trading robot is a computer software program that is designed with automated computer program based on a set of forex trading signals that helps determine whether to buy or sell a currency at a given point in time. Trading robots are capable of carrying out a complex series of actions automatically.

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Cryptocurrency exchange is an online platform that acts as an intermediary between buyers and sellers of cryptocurrencies. It is also said to be a digital marketplace where traders can buy and sell using different fiat currencies or altcoins.

Bitcoin exchange platforms match buyers with sellers. Like a traditional stock exchange, traders can opt to buy and sell bitcoin by inputting either a market order or a limit order. When a market order is selected, the trader is authorizing the exchange to trade the coins for the best available price in the online marketplace. With a limit order set, the trader directs the exchange to trade coins for a price below the current ask or above the current bid, depending on whether they are buying or selling

7. TYPES OF CRYPTO EXCHANGE AVAILABLE

There are 11 Best Crypto Exchanges 1. Binance 2. 3. kucoin 3 | P a g e

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4. 7. Coinmama 10. Trade Station 5. eToro 8. Bisq 11. 6. Crypto.com 9. Robinhood

8. BLOCKCHAIN WALLET A blockchain wallet is a digital wallet that allows users to send, receive, store and exchange value on a blockchain, as well as monitor and manage the value of their bitcoin and altcoin assets on the blockchain. A blockchain wallet allows transfers in cryptocurrencies and the ability to convert them back into users local currencies.

9. VARIOUS WALLETS AVAILABLE IN BLOCKCHAIN TECHNOLOGY

1. Ledger X 6. Privacy Pros 11. Online/Web wallet 2. Trezor Model T 7. Coinbase 12. Mobile Wallet 3. Ledger Nano S 8. Robinhood 13. Desktop Wallet 4. Exodus 9. Hot Wallet 5. Mycelium 10. Cold Wallet

10. DEFI (DECENTRALISED FINANCE)

Decentralized finance is a blockchain-based form of financial applications that does not rely on central financial intermediaries such as brokerages, exchanges, or banks to offer traditional financial instruments, and instead utilizes smart contracts on , the most common being .

Currently, the three largest functions of DeFi are:

 Creating monetary banking services (e.g., issuance of )  Providing peer-to-peer or pooled lending and borrowing platforms

 Enabling advanced financial instruments such as DEX, tokenization platforms, derivatives and predictions markets.

11. WHERE TO BUY AND SELL CRYPTOCURRENCY?

1. Coinbase 2. Gemini 3. BlockFi 4 | P a g e

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4. Uphold 7. Bitcoin IRA 10. Hodlnaut 5. Kraken 8. Crypto.com 11. Kucoin 6. eToro 9. Binance

12. WHAT IS A TOKEN

The term crypto token refers to a special virtual currency token or denomination of a cryptocurrency. These tokens represent fungible (equal value) and tradable assets or utilities that reside on their own blockchains and allow the holder to use it for investment or economic purposes and make purchases. Crypto tokens are often used to fundraise for crowd sales, but they can also be used as a substitute for other things. These tokens are usually created, distributed, sold, and circulated through the standard (ICO) process, which involves a crowdfunding exercise to fund project development.

14. WHAT IS PASSIVE INCOME

Passive income is income that requires little effort to earn, grow and maintain. Passive incomes are earnings that can be derived from a rental property, limited partnership, or other enterprise in which a person is not actively involved. Passive income is usually taxable.

15. WHAT IS STOCK MARKET AND FINANCIAL ASSET?

The stock market or equity market refers to the collection of markets and exchanges where regular activities of trading stocks /equities, other financial securities like exchange traded funds (ETF), corporate bonds and derivatives based on stocks, commodities, currencies, and bonds are also traded in the stock markets. The stock market serves as a platform that brings together hundreds of thousands of market participants who wish to buy, sell, interact and transact. Since the number of market participants is huge, one is assured of a fair price regime and transparency in transactions.

FINANCIAL ASSETS

Financial asset is a liquid asset that gets its value from a contractual right or ownership claim that is stated on a piece of paper such as dollar bill or a listing on a computer

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screen. What that paper or listing represents, though, is a claim of ownership of an entity, like a public company, or contractual rights to payments—say, the interest income from a bond. Financial assets derive their value from a contractual claim on an underlying asset.

Unlike land, property, commodities, or other tangible physical assets, financial assets do not necessarily have inherent physical worth or even a physical form. Rather, their value reflects factors of supply and demand in the marketplace in which they trade, as well as the degree of risk they carry. Cash, stocks, bonds, mutual funds, and bank deposits are all examples of financial assets.

Abbreviations for Different Cryptocurrencies

Although Bitcoin is still the most widely used form of cryptocurrency, there are many others. Check out this and their abbreviations that you may come across.

 BCH -  NMC -  XEM - NEM  BTC or XBT - Bitcoin  POT - PotCoin  XLM - Stellar  - Dash  PPC -  XMR -  DOGE -  TIT - Titcoin  XPM -  ETC – Ethereum  USDC - USD Coin  XRP - Ripple Classic ()  XVG -  ETH - Ether (also  USDT –  ZEC - known as Ethereum)  LTC -  Nano - Nano  NEO - Neo  VTC - Cryptocurrency Experience Abbreviations

Mining, authenticating, and trading cryptocurrency depend on three elements: blockchains (transactional records), online networks, and technical infrastructure. Here are some of the popular abbreviations and acronyms that you’ll find on your cryptocurrency journey.

Blockchain and Network Abbreviations

You can use a DAO to conduct a P2P transaction or to measure MACD. But what does that even mean? Check out a list of commonly used terms when referring to blockchains or trading networks.

 DAO – Decentralized  EIP - Ethereum Autonomous Improvement  BIP - Bitcoin Organization Proposal Improvement  DPoS – Delegated  ERC – Ethereum Proposal Proof of Stake Request for Comments  BTM - Automatic  EEA - Enterprise  EVM – Ethereum Teller Machine for Ethereum Alliance Virtual Machine Bitcoin  FA - Fundamental Analysis 6 | P a g e

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 LN – Lightning  PoB - Proof of Burn  TA - Technical Network  PoD - Proof of Analysis or Trend  MACD - Moving Developer Analysis Average Convergence  PoS – Proof of Stake  UoA – Unit of Account Divergence  PoW – Proof of Work  UTC - Coordinated  MoE – Medium of  SC – Universal Time Exchange  SegWit – Segregated  WP – Whitepaper  P2P – Peer to Peer Witness  YTD - Year to Date  PoA – Proof of  SoV – Store of value Authority

Technical Abbreviations

Cybersecurity is a major element of using cryptocurrency successfully. Developers and users alike should know the basics of technical cryptocurrency abbreviations. Some of these abbreviations include:

 2FA – Two Factor Authentication  DEVCON - Developers  Addy - Address Conference  API - Application Programming Interface  GPU – Graphical Processing Unit  ASIC – Application Specific  IPFS – Interplanetary Files Integrated Circuit System  BFA - Brute Force Attack  PKI – Public Key Infrastructure  Bech32 - Bitcoin address format  Multi-sig - Multi-Signature (also known as bc1 addresses)  NONCE – Number Used Only  CPU – Central Processing Unit Once  BFT – Byzantine Fault Tolerance  SHA-256 - Secure Hash Acronym  DAG – Directed Acyclic Graph (256-bit)  DAPP or dApp – Decentralized  WWDC - Worldwide Developers Application Conference  DDoS – Distributed Denial of Service

Financial Abbreviations

The ultimate objective of using cryptocurrency is to make money. Like stock traders, Bitcoin owners enjoy the risk and payoff of trading. See how technology and economics combine in a list of trading lingo and financial abbreviations.

 AML - Anti-Money Laundering  CMC - Coinmarketcap  ATH - All-Time High  DAICO - Decentralized  ATL - All-Time Low Autonomous Initial Coin Offering  ALT or Altcoin – Alternative  DCA - Dollar Cost Averaging Cryptocurrency (cryptocurrency  DeFi - other than Bitcoin)  DEX –  CEX – Centralized Exchange

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 DLT -  mBTC - Millibitcoin (0.001 BTC) Technology  MCAP – Market Capitalization  ERC-20 - Token standard for  PnD – Pump-and-Dump scheme Ethereum  OTC – Over the Counter  ERC-721 - Token standard for  SATS – Satoshis (the smallest NFT (non-fungible tokens) denomination of a Bitcoin:  ETF - Exchange-Traded Fund 0.00000001 BTC)  ETP – Exchange-Traded Product  STO – Securities Token Offering  FIAT – Conventional  TPS – Transactions Per Second government-issued currency (e.g.  Tx – Transaction US Dollar, Euro)  TxID – Transaction Identification  IBO - Initial Bounty Offering  uBTC - MicroBitcoin (0.000001  ICO – Initial Coin Offering BTC)  ITO – Initial Token Offering  UXTO - Unspent Transaction

Conversational Cryptocurrency Terms

Every online community has its own jargon and slang, and the cryptocurrency world is no different. Members experience both FOMO and JOMO while they try to BUIDL their future and HODL. Read up on cryptocurrency slang terms that you might need when interacting with experienced users.

 BUIDL – “Build” (purposeful  JOMO - Joy of Missing Out misspelling for ironic meaning)  KYC - Know Your Customer  FOMO – Fear of Missing Out  Lambo - Lamborghini  HODL – Hold On for Dear Life (cryptocurrency term for getting (purposeful misspelling of rich) “HOLD")  TLT - Think Long Term  BTD or BTFD – Buy The Dip or  OCO - One Cancels the Other Buy the F****** Dip  AMA - Ask Me Anything  DYOR – Do Your Own Research  REKT - “Wrecked” (meaning  FUD – Fear, Uncertainty, Doubt major losses)  FUDster - A person who spreads  TOR - The Onion Router (one Fear, Uncertainty, and Doubt who sends anonymous data)  ELI5 - Explain It Like I’m 5

Abbreviations for Regulatory Commissions

Like standard currency, cryptocurrency is regulated by various bodies and commissions. These organizations create regulations to avoid fraud and illegal schemes. Some of these commissions include:

 SEC – Securities and Exchange Commission  FTC – Federal Trade Commission  CFTC – Commodity Futures Trading Commission  FDIC – Federal Deposit Insurance Corporation  DOJ – Department of Justice

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