Hello, in this lesson we are going to cover up what are cryptocurrencies, what is a cryptocurrency? So, here are some examples of cryptocurrencies, they claim if aetherium light coin and there are so many more but, but like I said what are they essentially, they are a digital asset, a digital asset used as a medium of exchange or commonly referred to as commodities or cryptocurrency Is there essentially a commodity something that you can use to facilitate transactions? Behind the scenes, they use something called crip. holography hands were the part correct come from crypto should say in cryptocurrencies. So they use cryptography to ensure the security and validity of transactions from transaction being in general fear currency. If I Going to my bank can log in and 10 Pam to you.

That's a transaction. So cryptography is used beyond the scenes to ensure security and validity of transactions using mathematics and algorithms. We'll cover that in a separate video exactly what cryptography is. So if you're unsure about that, don't Don't worry, there is a video for that, as I mentioned that we have a few cryptocurrencies already we've got a lot actually, here are some of them, with Bitcoin being the largest one in the market cup popularity, and just in general, the biggest in the world as of creating video. And another crucial thing about a cryptocurrency and essentially technologies that power cryptocurrency is they are not that by a central All 40 such as the government which would terming it value and if they needed more essentially currency they will just, for example, in the form of dollars just print out more dollars. So, they will just print more out which would lead to deflation of the currency.

Cryptocurrencies don't work exactly like that they are not issued by a single authority, the value the value is actually determined proportion To the interest in set currency instead, crypto currency and essentially the work behind mining and the work behind mining it will cover mining in more depth in a separate video. So again, if you're not quite sure well on my knees, we'll be covering that sinful and the work behind mine in it. But just a quick overview mine is essentially the process of actually confirming the validity and security of transactions using mathematical algorithms and users are rewarded, usually in part or the cryptocurrency in the itself. So that's what it is and more are created. More crypto, currency is created for flash issued again not by single authority, but through the process through the process process the lack correctly code mining it's essentially a digital form of mining for gold Let me try and draw some gold here my best to draw some gold nuggets.

These are the gold nuggets that you would conventionally mindful there is essentially a digital version of that and both of which both of which have a finite amount with Bitcoin. Bitcoin having roughly roughly a total amount of 21 million but the currency coin can be split into smaller denominations, they don't have to transfer a whole number Bitcoin what you can do is transfer 0.0001 Bitcoin for them to 0.02 free of a Bitcoin. So, it is very versatile in that sense and roughly all bitcoins will be mined by 2140 that is the current estimation It is usually usually free and open source not where to get the cryptocurrency itself but to be able to develop for it, to be able to to be able to use it. So, essentially a recap of the three main basic concepts of Free main basic concepts of what a crypto currency is.

They have public Ledger's, I've already created a separate video for that. So check that this is a essentially a database which holds all the transactions and not controlled by a single 48 public IPs are stored by one individual as well as confirmed using the process. It's confirmed using the process called mining in terms of the transactions are so you know that legit and transaction so these are the three main concepts transactions, which are stored in public Ledger's and mining, validate the transactions So he can update the public ledger with the new transactions. So that's it for what cryptocurrencies are. If you have any questions, feel free to reach out, feel free to check out the video again and just have a look at any concepts that you didn't quite understand. And as usual, thank you for watching, and I look forward to seeing you in my next lesson.