What is cryptography?
Cryptography is the science of producing secure communications, including passwords, encryption, secret messages, and digital signatures.
Section 2: What is blockchain technology?
Blockchain technology is the secure database technology that underlies most cryptocurrencies.
Section 3: What is cryptocurrency?
Cryptocurrency is a type of digital currency. Cryptocurrency shares many similarities with physical cash:
You can use it to purchase goods and services.
You can trade it among other people.
You can buy and sell it for other currencies.
Cryptocurrencies exist as a kind of ledger. The ledger shows an account of every transaction that has ever been completed.
Unlike physical currency, which is used only by its owner, cryptocurrency is universally usable.
How to identify a crypto scam?
Bitcoin and other cryptocurrencies lack the background information and background materials that every legitimate company has. As a result, many people are increasingly scammed when they fall for fake projects. For example, a fake SEC-registered company known as Coinvault pretended to be a hedge fund, promising people access to Bitcoin, even though they didn’t really own the currency.
Another example is a scam that was created to take advantage of weak security practices on the Ethereum network. The company was selling a software called Blockchain Solar, which is an Ethereum-based solar panel that would allow people to get paid in any cryptocurrency they owned, including Bitcoin and Ether.
What are the most common crypto scams?
Distributed denial of service (DDoS) attacks are a popular way for scammers to launch fake startups to take the spotlight and generate hype for their fraudulent endeavors. Distributed denial of service, or DDoS attacks, work by flooding a website with a lot of requests, effectively knocking the site offline. The victims of such attacks usually end up paying for the fraudulent services, such as remote access to the site or data and storage. There are a variety of free, reliable DDoS protection tools that can ward off cyber attacks.
Another common scam is pyramid schemes, which work the same way in digital currency scams.
Cryptocurrency and blockchain technology
Blockchain is a secure, decentralised digital ledger that makes transactions easier. It records financial data as digital data and stores it in a decentralised database, ensuring that there’s no single point of failure. In the simplest terms, blockchains make digital transactions secure and efficient. Blockchains can also be used to monitor cybersecurity in institutions, and to create the infrastructure of a digital currency.
Virtual reality may soon transform the world we live in
Many big businesses are already testing out the new technology for some pretty radical breakthroughs.
Sometimes the hardest thing about cryptocurrency investing is that it can be difficult to know what’s legitimate. That’s why it’s important to do research and consult with experts.
Unfortunately, you can’t always trust what you read online, so it’s best to do a bit of legwork before handing over any of your money.