What is a Cryptocurrency and Investment
Management
Why is Blockchain Technology Important? Division
Common Features of Cryptocurrencies
Common Features of Attributes
Cryptocurrencies
= Coin ownership is represented by entries on a digital
i a Digital ledger, not by a physical token.
V Decentralization = No single entity controls the currency.
v Open Source = All source code is available freely online.
Y _ Distributed = Each cryptocurrency uses a method for obtaining Consensus consensus on ownership without a central arbiter.
Yi . = Coin ownership is not linked to real-world identities Pseudonymity within the blockchain.
Y Cryptography = Several cryptographic techniques are used to verify (computerized encoding) transactions, protect identities, and limit supply.
= Acryptocurrency is a decentralized digital coin. It allows users to make transactions and store money in a secure and pseudonymous manner.
# All cryptocurrency transactions are recorded chronologically on a blockchain, which acts as the critical infrastructure underlying a cryptocurrency.
« The process of verifying transactions and ensuring the validity of the blockchain is called “mining.”
= Mining solves the “double-spending” problem that had plagued previous attempts to implement a digital currency.
Source: Investment Strategy Group, http://cryptocurrencyfacts.com/how-does-cryptocurrency-work-2/ . 6
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