Fundamentals of Blockchain Technology and Cryptocurrency | Ivy Kepiro | Skillshare

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Fundamentals of Blockchain Technology and Cryptocurrency

teacher avatar Ivy Kepiro, Instructor at 'IVY ON CRYPTO'

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Watch this class and thousands more

Get unlimited access to every class
Taught by industry leaders & working professionals
Topics include illustration, design, photography, and more

Lessons in This Class

24 Lessons (1h 42m)
    • 1. Chapter 1 - Welcome

      1:05
    • 2. Chapter 1 - Course Outline

      1:27
    • 3. Chapter 2 - Introduction to Blockchain & Bitcoin

      0:35
    • 4. Chapter 2 - Blockchain & Bitcoin Overview

      8:09
    • 5. Chapter 2 - Benefits of Using Blockchain (Part 1)

      7:50
    • 6. Chapter 2 - Benefits of Using Blockchain (Part 2)

      4:29
    • 7. Chapter 2 - Disadvantages of Blockchain Technology

      3:26
    • 8. Chapter 2 - Types of Blockchain

      3:25
    • 9. Chapter 3 - Evolution of Blockchain (Introduction)

      0:37
    • 10. Chapter 3 - Blockchain 1.0

      1:51
    • 11. Chapter 3 - Blockchain 2.0

      4:35
    • 12. Chapter 3 - Public & Private Key

      3:23
    • 13. Chapter 4 - Bitcoin Fundamentals (Introduction)

      0:26
    • 14. Chapter 4 - The History of Money

      5:41
    • 15. Chapter 4 - What is Money?

      3:47
    • 16. Chapter 4 - Bitcoin Basics

      5:59
    • 17. Chapter 4 - Bitcoin as Money

      5:24
    • 18. Chapter 4 - Bitcoin Ecosystem

      4:12
    • 19. Chapter 5 - Introduction to Cryptocurrency

      0:48
    • 20. Chapter 5 - What is Cryptocurrency?

      8:24
    • 21. Chapter 5 - The Future of Cryptocurrency

      6:03
    • 22. Chapter 5 - Proof of Work Vs. Proof of Stake

      11:21
    • 23. Chapter 5 - Transactions (Etherscan)

      6:53
    • 24. Wrap Up

      2:15
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About This Class

About this Course

Are you interested in cryptocurrencies and Blockchain Technology? This short course is a simple and straightforward path to understand the fundamentals of Bitcoin and Blockchain Technology. Whether you are a complete beginner or someone with basic knowledge, this class will help you to understand how and why Bitcoin was created; how Bitcoin and Blockchain works to understand the whole cryptocurrency market and its ecosystem. You will also learn about the history of money to really understand the new digital financial system and be able to navigate through and take this journey further with confidence.

What you will be learning:

  • Chapter 2: What Blockchain and Bitcoin is¬†
  • Chapter 3: Evolution of Blockchain Technology
  • Chapter 4: History of Money & why Bitcoin is important
  • Chapter 5: Basic knowledge of other cryptocurrencies and their future plus about mining.

After the completion of each chapter, you will have a project to complete, which will enable you to apply what you have learnt with confidence. Feel free to also educate your friends on this platform about cryptos! :) By the end of this course, you should have a firm foundation about blockchain and cryptocurrencies.

Disclaimer: Ivy Kepiro is not providing you with individually tailored investment advice. Ivy Kepiro is not an investment or financial advisor and is not a broker-dealer. Any examples used are for educational and illustrative purposes only. Ivy Kepiro cannot guarantee any results or investment returns based on the information you receive. You must read and understand the above and be aware of the risks of all trading and investing and be willing to accept them before investing. Ivy Kepiro is not responsible for any gains or losses that result from your cryptocurrency investments. Investing in cryptocurrency involves a high degree of risk and should be considered only by persons who can afford to sustain the possible loss of their entire investment.

You can visit my website following the link below:

https://www.ivykepiro.com/

Meet Your Teacher

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Ivy Kepiro

Instructor at 'IVY ON CRYPTO'

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Transcripts

1. Chapter 1 - Welcome: Welcome to this course, Hubble blockchain technology and cryptocurrency, but mainly Bitcoin. If you are just getting started, this is a great place to gain the fundamentals of block chain technology in the cryptocurrency market. Discourse is just the starting point to really understand the cryptocurrency market. And also probably this is the most important and exciting industry of all. And I wish I had such a course when I started my journey in crypto land, My name is IV. Iv will be your course instructor. I started my journey either cryptocurrencies, princes to retire and subvert them. And I fell in love with straight away. Over the past few years. I spent pretty much my every day to educate myself. And that also trying to educate others as well is industry is developing and changing rapidly. And there's so much to learn. So I hope you are excited because you will be learning a lot. I will see you in the next video. 2. Chapter 1 - Course Outline: Now let me talk about the outline of discourse. As I have mentioned in the previous video, we will be learning about the basics and fundamentals of block chain technology, why it is important and also its disadvantages. You will also learn about what money is and its history before we really dive deep into Bitcoin. In order to really understand what's going, you really need to understand what is at first place. And lastly, in order to understand ecliptic courtesies, you will need to understand what bitcoin is and how it was created. So overall, what you will be learning abroad is block chain technology, money, Bitcoin, and cryptocurrencies. The course can be confusing sometimes as every fund is linked together, it is quite tricky to find a starting point to explain every field. However, the more you will watch and learn, the easier it gets, and the more you understand. If you have any questions during this course, you can always contact me, I believe ordered the test we will need to know in order to reach without and the other advice, make sure that you have a pen and paper and you can make some notes so you can always revisit them. And lastly, to finish this off, make sure that you read the disclaimer at the end of this chapter. And now let's get started. 3. Chapter 2 - Introduction to Blockchain & Bitcoin: Welcome to chapter two. In this section, you will be learning mostly about blockchain technology, especially about the advantages and also the disadvantages and a little bit about Bitcoin, just understand the correlation between the two and broke down this part, this chapter into small sections. So you know, I'm going to overrun by too much information. So we're just going to start little by little. It don't worry if you get a little bit confused because in the coming section you will learn about more and you will understand more. So now let's dive into. 4. Chapter 2 - Blockchain & Bitcoin Overview: I am very glad that you have chosen to watch this course. And you know, people often say like the best way to learn is through experience. I do admit that this is partially true. However, in my own opinion, and through my experience, what I learn is also to best to do your research before you actually jump into the unknown is basically just risk management. So now let's talk about how I got into the cryptocurrency world. So a few years ago I was in a job. I'm stealing that job, but I did not really like my job. And also the vertical Doumani I was getting and I was constantly thinking, okay, how can I make my life better? How can I actually earn extra income? And with a friend of mine, we were just chatting and he was suggesting maybe you should actually invest in cryptocurrencies. And there were like, what is cryptocurrency? I don't know anything about it. So that time he was into Ethereum mining and also Bitcoin. But in this, of course, I'm not going to talk about FAO, but just to know basically bitcoin Ethereum is a two major cryptocurrencies. So what he was saying is actually let me explain. So I'm going to start a screen recording so you can understand a lot better. So let's talk about first bitcoin. So this is bit going. Hopefully you can read my handwriting. So what he was saying that this is a digital currency, okay? So I'm going to write down on digital currency. And so basically it exists only online or computer, so it is not tangible. So you cannot Dutch, Okay, maybe we could write it that you can't touch it. And the other important was like, you don't need a bank, and it is permission-less, but obviously you need a bank account to actually buy the upper chase it. So we could say it's permissionless. Okay. And also what he was saying that is this also which is one of the main important bit, is actually this de-centralized read his idea and is not controlled by government. So this is decentralized. I was like, okay, that sounds cool. But it sounded still a little bit Chinese for me. Like, okay, how can I know that this is a good investment or how it can be secure? So I had lots of questions in my mind and I started to dig a lot more deeper. I started doing a lot of research on this. So I spent the last three years for now and you take educating myself. So the way how it can be secured by the block chain technology. So blockchain technology makes BitCoin work. So if I'm going to talk about Blockchain technology. So let's write down block chain. Okay, so this is a first generation data structure and also a database. I can write down database. Maybe it's all in one word, sorry for my gamma. And this is basically what you can imagine is chain of blocks, okay? Like cubes, chain of blocks, okay? So that's we'll call block chain. And each of these box, boxes, they have fixed sizes. Okay, fixed size. So if I want to zoom out with a massive magnifier, so a one book is const, contains lots of transactions. Transactions. Okay? And you can always add information to the block. You cannot remove them. So there is no way that you can remove him for me. Sure. Once it is on the blockchain, it's going to stay there forever. So this is also one very important feature. And also what you need to know is basically a block chain. So the blockchain technology is also our network of computers. So let's say this is a computer, this is also a computer l. These are all computers. And these computers, just to make it a little bit different. They tied together. Okay. So everybody or linked together. And each of them, they have a copy of this block chain. So they all have a copy of this block chain. And this is called also another word, distributed ledger. So for the moment, we're just going to keep it simple. And what you need to remember now is blockchain is a database on data structure. So you see you have blocks of transactions, okay? They have a fixed size. Every time there is a new transactions can add to the block chain. So and also because there are different computers, they have the copy of the block chain you can achieve. So for example, let me just give you an example. Let's say person a wants to send Bitcoin. The person being. So a has let's say one Bitcoin. So these computers, they going to check on the system whether Person a has a full Bitcoin. So once each of the computers agree, let's see. This says okay, OMG, I agree that person has I agree. I agree. So everybody agrees that person a has a 1B coin, then the transaction will move to Person B. And person B will have one big going. So you can't do like, OK, I have two bitcoins, but in reality I have only one. I hope that makes sense. So that's 5x block chain makes BitCoin secure. Don't worry about it if it still making a lot of nonsense. Photo camera in the coming videos, I will explain more and hopefully you will understand more. So now let's dive to the next one. 5. Chapter 2 - Benefits of Using Blockchain (Part 1): Welcome back guys for another lecture. I hope you enjoyed the first one. So in the previous video, we have talked about how Bitcoin is using block chain technology in a nutshell. And in this coming section we're going to discover the advantages of the block chain technology. I have divided this part into two sections so you're not going to be overrun by too much information at once. So we're going to start with two main factors. What contributes to the technology? So let's write just for the first point, which is called provenance. So I'm just going to write down provenance. And what it means is basically it is a real-time audit team or tracking. So let's say our thinking. And we can also basically like in real time. So to clarify, blockchain, we can apply in all kinds of industry. We can apply to have care, food industry, finance, and so on. So it's not only cryptocurrencies, but obviously cryptocurrencies using mostly at the moment. And so for example, when it comes to provenance, as an example, apart from the cryptocurrency space, let's say like the food chain. So let's talk about, I bet everybody likes chocolate. And let's say we have a chocolate bar here. It's not the most beautiful chocolate bar, but in terms of ingredients, the usual in the ingredients, or Coca-Cola usually have lots of sugar, which is not too healthy. And also see milk is just an example. I hope you can read this. And at the moment in our system, we trust deferred parties. We trust the system. We trust that, for example, this Coco is comes from, from trusted place or we don't know like where this Coco actually coming from, if it's organic or ethical. Still the same with the sugar. We don't know where it originated from, or same window MOOC and so on. So we can also break down into more parts. But just to understand what it means by real-time auditing is when we apply block chain in the food industry. You don't have to trust any longer. Okay, so basically, we can remove the trust. And how can we remove these trust? So the second is, which is also a fractal, is by consensus. I will explain a second-line sues and basically is removing the trust. So it's going to be also trust less and also verified. I really explained just now. So remember when we talked about the network of computers. So we have computers, participants, miners will explain in a second. So each of remember the York coordinated to each other. I'm not going to eat all the dots. And they all have they all have their copy over Blockchain. So when actually a transaction, so we have the block chain. Explain. And everybody has the copy of this block, Jim. So they have all the data already. And in order to add the extra block to the block chain, the next one, every participant has to agree. So this computer has to agree. This has say, agree. Everybody has to agree. Okay. So that is not why trust is by consensus. So everybody agreed, that means they come to a consensus. And when everybody accepted the transaction, it will be added to the block. So that will be appended to the block chain. And remember, we cannot remove any data from the block chain. And this is a very important feature or so. This is also a question like how we can actually achieved this. I'm just going to write here now, is that different type of consensus mechanism. One type is proof of work, and the other one, for example, is proof of stake. So the proof of work is related to mine. Mmm, I will be talking about mining towards the end of this course, but for the moment, but you need to know is that some of the computers, they are miners. And the miners the incentivized financially to play by the rules. And also because they play by the rules, they get a reward them financially. So that is why you can trust everybody, because they don't want to lose money, they want to earn money. So that's why you've probably heard like someone is earning money by mining. Just to write it down. This is called, oops, mining, excuse me, for my writing. Okay? And this is at the moment, what you need to know for the moment. And in the later videos we're going to expense. So remember the first feature of the block chain or advantage is providence. So real-time auditing and prominence cannot exist without consensus. So we can only do debris realtime auditing by consensus, which is basically everything is verified So we remove trust. It's a trust less system. Ok, so that's very important as well. I hope that makes sense. And in the coming video, we're just going to expand more on the advantages. So see you in the next video. 6. Chapter 2 - Benefits of Using Blockchain (Part 2): Black on white guys for another video. And in the previous ones, remember we have covered provenance and consensus is a two main features of the block chain technology. And in this video, we're going to expand our knowledge more than we're just going to cover a little bit more aspects and advantages of the blockchain technology. So now, as you can see, I prepared a little bit more with some of the nodes and hopefully you can read them. And so remember, provenance is a real-time auditing. And that cannot fully exist without consensus, which is basically being a trust less network. So in this video, we're going to cover these two features, which is secularity and immutability. So most of our times, as we mentioned, we trust in the third part him. So we transferred party. For example, when you sign up for your local team or at UTEP, basically you trust them to store your data. And in the Bitcoin block chain, we trust the math and the protocol, so it cannot be head. For example, talk about immutability is basically, remember that when you put an information onto block chain, it cannot be changed, it cannot delete, so you cannot cheat. But let's see versus your, see your GP in the database. Technically, it is immutable. So people could technically changed, but you trust them. So it is still burrow to trust the math and the protocol. And when it comes to high availability, Bitcoin ISTO, longest living network of our history. So it runs constantly, 247365 basically. So that means that remember when we talked about that, dopamine knows the participants of the network. They are financially incentivized. So remember, we still had the network of computers, knows the miners, some of them that say they are the minors. So they are financially incentivized. And the basically a run and protecting the network. So just a little bit of extra information about what the winding Network and the protocol is ran that or more and minors joined a network. The network will be more secular, but it's also more difficult to mine. And because it will be more difficult to see maybe some nervous like a bigger institutions, okay? And maybe some, there are some individuals with less capacity and less financial files. So when there are more people joining the network, it gets difficult. So basically, let's say These people real VR because they cannot keep up with the expenses. And because now the network that are less people, so it becomes actually easier to mine. So it means more people will join again. And it is an ongoing process. So that's basically keeps.net and galium. So remember these four features of the block chain technology. So now you know provenance, tom auditing, trust less consensus. Also Secretary and immutability. So you trust about MAF and the protocol and also high availability, always available. That is no weekend or bank holiday Esau is always available. I hope you understand a lot more. And in the coming widow, we're going to cover the disadvantages of the blockchain. I hope you enjoy it and see you in the next video. 7. Chapter 2 - Disadvantages of Blockchain Technology: Welcome back for another video. I hope you enjoyed the course so far and just started. And remember the previous one. We talked about the advantages of the blockchain technology. And I would like you to understand the disadvantages as well. It's going to be a fairly short video, so let's start. So again, I made some nice roving for you to illustrate butter and just a few offerings to know. The other side of the coin basically is the number one is illegal activity. So you're logged in block chain is is basically doesn't reveal your identity. So on the block chain is there is no name or identity and therefore your transaction is private. What that it means that it is also played to do illegal activities because nobody can really track who is purchasing what or where the money actually goes. However, the technology is getting better in the sense of like you can take and actually check some of the stresses on exchanges. But still it is still illegal activities at the moment. And that's why it's also the government doesn't really like the blockchain technology. And next one is lack of scalability. So at the moment, it is quite limited in terms of scalability. And this is one of the main disadvantage of the blockchain technologies gotta enter the struggling with. There's not much to say about it right now. And a little bit on the political and lotto, the challenges is basically there are no clear of rules or regulations go deadly and every country has different political issues or state. So it is at the moment is quite challenging to bring it to the mean. Adoption just because of the regulations. However, there are more and more governments working on regulations. And lastly, I would like Dawes who mentioned the environmental issues. So remember when it comes to mind him to protect the network, it also consume lots of energy. And it used to be very muddy, harmful for the environment because of the energy consumption. However, resettled lambda in just more research. And basically my nurse started to do or use more renewable energies, solo hydrogen. And that is quite positive. So that's why I was drawing here a tree agreeing trade. Because actually people do care about the environment. So I will say this one is coming to the positive side. So it's not as bad as it was before. Again, every Fin, people just taught to work on. So let's see how it goes. And now we're going to move to the last video of this chapter, which is going to be talking about different types of block. James. Let's see you in the next video. 8. Chapter 2 - Types of Blockchain: Alright, x is going to be the last video of this chapter and also is going to be fairly short, but I feel like I would like to share you all of this information with you. And if you would like to do more research, I believe some extra links to actually read up. So first of all, let's talk about the type of block chains. At the moment. It's really no need to know a lot more about it. But in k-means just for your knowledge, there are different type of block chains that are public, like Ethereum, Bitcoin and many others blog genes. And there are also private ones, but there is not many actually using currently. And also that are hybrid ones that are also different type of platforms. And the majority you will find in the cryptocurrencies, please. These are the coins, for example, epithelium, neo, yours and what do I mean by platform? So basically, software developers can build applications on top of these block chains. Okay, we're going to talk about this in the later section. When we talk about the block chain technology development, actually the evolution of the blockchain technology. So there are more than more platforms, probably, maybe every day popping up something new. But I've just written down some major ones probably you feel heard of. So number one is definitely if you and probably I would say cover dunno. Yost Neo is based in China. It's a Chinese FAQ blockchain basically. And there are two others which is not really blockchain, but it is still a platform. So iota and had a hunch, but basically they use different data structure and consensus Mohammedans mechanisms to protect the network and provide security as well. I'm not going to go too deep into it, but I really view some link so you can actually read up. And pretty much this is it for this video. And I would like to just summarize basically. So, so far remember retorted about Bitcoin, which is actually just to write them is BDC is basically means Bitcoin. And how are we actually overlaid to the block chain? And the moment I just write block chain, it's a chain of blocks. So Bitcoin is using block chain technology for tracking transactions, okay, so it is a very simple blushing technology is pretty much mainly for transactions and authority about the advantages and also the disadvantages of the block chain and also some of the types. And I will see you in the next chapter. 9. Chapter 3 - Evolution of Blockchain (Introduction): Welcome everyone to chapter two. I hope you enjoyed the previous lecture and hopefully you are encouraged to learn more. This chapter will be fairly short. V going to talk about the evolution of the block chain technology, which will be 1 and also 2, which is related to smart contracts. I will finish off this chapter within the public and private key, which is also important to understand and also to understand the coming lectures as well. So let's start. 10. Chapter 3 - Blockchain 1.0: Welcome back. Now you can ask what is block chain 1? Oh, let me just explain. So Bitcoin creator is Satoshi Nakamoto. He or she, we don't know. So it can be a group of people or just only one person. So, but this is in an anonymous person or group of people, so nobody really knows who created exactly Bitcoin, but we only know that it is. It was the under name of Satoshi Nakamoto. So in 2008, the Bitcoin white paper was written by individual, so we could just write white papers. So if you would like to know more about it, can also Google and you can read it if you are interested in. And Bitcoin was actually created or existed already in 2009. And the block chain, the Bitcoin block chain was only used for transactions. So it was very, very simple. So we can write Bitcoin transactions. And there are also other crypto-currencies like Bitcoin using block chain 1. So for reference, you can also look it up like going also using block chain 1. And because it was very simple, people wanted to do more on the block chain. And they haven't developed the 2, which I'm going to talk about in the next video. So let's dive into the next one. 11. Chapter 3 - Blockchain 2.0: Welcome to another episode. So in the previous video we have talked about the block chain 1. And in this video we're going to talk about a 2. So before we actually really dive deep into, we need to mention a very important person in the cryptocurrency space. And that is metallic. And whatever. I don't know how to easily pregnancies Nim. So initially he was working on the Bitcoin project and he wanted to do more development on the block chain. So he had, he had the d phi in mind, which stands for decentralized finance. And basically what he wanted is to be able to program our money on the Bitcoin blockchain. He wanted to add a programmatic language. Don't worry about it too much at the moment. The reason I am mentioning is just to understand the development and the evolution of the blockchain. So basically what he wanted is taking a Bitcoin and using gas a collateral, if you don't know what a collateral means is basically a menu land something. Let's say you have an asset and you pledged, and it's basically an insurance to pay back your loan. So for example, taking a Bitcoin as a call later and tell us certain conditions applied. And if so few, if a certain events happen, autopilot, then this going to be released. Again, don't worry about too much about the technical aspects. The whole point is the Bitcoin developers, they didn't like his idea. They wanted to keep it simple. So he come up with if helium. So he created it, the rich basically now is when we shift to blockchain 2. And that is basically the smoke first smart contract platform. So do you remember when in the previous chapter we talked about there are different blockchain platforms. For example, I mentioned the new Mio, yours, Cardano and other applications. But f2 is the very, very first one. So imagine on top of Ethereum block chain. Now we can create depths, which stands for de-centralized applications. And these are basically a collection of smart contract. So these smart contracts, they are able to program money. And that is very, very important that we can actually program our money. So it is very important the softwares, they know what to do with the money. And again, don't worry about this too much right now because I also would like to actually create the fecal so you can understand more, or maybe I already created if you watch, I don't know when exactly in timeline. But basically these de-centralized applications, the borderless, they also timeless and the governments, they cannot shut them down. So they are very, very important as well. So this is how actually we come to blockchain 2 because of little league wanting to create more and develop the blockchain that now we have a failure meant other platform as well. I hope that this makes sense. So remember, the 1 was only transactions only. And here a 2. Now we can actually put it on top of, so we can have other applications as well. And now we're going to move to the last video of this chapter is going to be a public and private keys. And I see you in the next video. 12. Chapter 3 - Public & Private Key: Now let's talk about public key and private key. When you would like to interrupt the cryptocurrencies, you will need to have wallets, just like when you want to interact with the money. But we didn't clip the current assays are valid, can contains both a private key and a public key. So it is very important to distinguish what they actually really are. So let's dive into. So as you can see, I was throwing some nice fun stuff. And let's start with the public-key solids. To start with your wallet, you can actually use on a mobile application, a website, or other places as well. And the public key is basically like your postal address. And this could be displayed publically as far as putting the house basically this is your address. And as a cryptographic address which consists of letters and also numbers, and usually fairly long. And you can give this to your friend or whoever you would like to receive money from. And you can also use this to send money to. And when it comes to private key, this is very, very important that this is actually halfs two, you have to keep secret. So actually I'm going to write it down in big letter. Is you have to keep it secret. Ok. You should not share with anyone. It is basically like your password for your bank account. And this also contains a special digital signature when you create a cryptocurrency, valid, and usually this private key is stored within. So it is sometimes can be displayed depending on the applications you are interacting with. But you often finding this private key is actually already built in, so you don't really have to worry about it too much. As a private key, you do have to worry about your password when you want to log into your, for example, exchange wallet. But your private key is different from your password. Just to keep in mind, if you would like to know more about, is to understand more and I'm going to share with you a link. And I also created a course for beginners about how to get involved. How to buy basically your first bitcoin or FAD and cryptocurrency basically. And in this course, I am explaining a lot more about the different type of wallets that benefits, disadvantages and all sorts of things. So if you're interested, I will also share this link. And you can also check that the course out. And now we're going to move to the following chapter and hope you enjoy it and keep up the good work. And seeing the next video. 13. Chapter 4 - Bitcoin Fundamentals (Introduction): Welcome to chapter four. I hope you enjoyed the course so far and also that you learn a lot. In this chapter, we're going to discover the history of money in order to understand the future of money. You will also learn about the bitcoin ecosystem and more in depth about Bitcoin. So by the end of this chapter, you should have a firm understanding on what bitcoin really is. Let's start. 14. Chapter 4 - The History of Money: Let's talk about the history of money first. This is a very important topic in order to understand how and why we got hit in the financial world where we are right now at the moment. And also why Bitcoin was actually created. It is also very important to note that money and courtesy is not exactly the same. No doubt understand why the best advice is actually to watch Mike Maloney studies, which is called a hidden secrets of money. And he explains very violent a whole history of money, the evolution, and also the difference between currency and money. So in this course, I'm only going to cover the basics. And if you would like to learn, I will try to leave the link at the end of the chapter so you can actually follow up or again, search on YouTube, Mike Maloney, the hidden secrets of money, right? So now let's start with them. So I made some nice drawing as usual. And probably, you already know, like we started as a barter system, read exchanging between good read goods. But it has lots of many disadvantages. For example, if you had some cherries or oppose or any type of fruits and you wanted to maybe buy a cow or more cows. In terms of the wall, you obviously did not exactly the same. And of course, you can't even divide a coward to small pieces unless you just go for the butchers and get some meat. So this system was not the best. So we moved on to the medium of exchange. And for example, salt or animal skins or people who were using salt as a kind of money. So if you wanted to imply some cherries, you had salt or what the problem was with. It also had expired ID, for example, maybe animal skins or to any other goods. Or again, you couldn't not really the wind them accordingly and the improvement of technology eventually some of the items got extremely abundant soda, they lost the purchase barber. So again, they had to come up with a new idea. And that's where we got to the metal spot. So we got gold, silver, copper, other precious metals as well, but they were also inflexible. Again, same how you can actually divide efficiently. Some, if you have a gold bar but you only wanted to buy, let's say just the bread. You had to have like small pieces. And eventually some of these precious metals. Bea can get likes more coins as well. So we got also like some kind of coins, but in terms of the purity. So for example, this was, I'd say, fool's gold coin. And this is a little bit of cold. Let's see, a little bit of copper. And then you got eventually more copper, gold. So the gold standard wasn't actually efficient. So we evolved to people, banknotes and S, The Global trade has actually opened up. We needed something tangible, also fungible, portable and durable. So these were also Judah ball, fungible, tangible and the reasonable. But event, the paper banknotes became more useful. So initially the paper banknotes were backed up, sorry, they were backed by gold. So you could actually redeem these bank notes based on how much called they were backed by. So you can actually redeem them. But eventually they lost this value. So now that is no gold backed fiat currency we have at the moment. So basically the volume is based on what the government wants and how much they actually can print. So now you can't just go to a bank and ask for them. So now removed to digital fear at the money. So you can have it oily or for any applications. So this is a lot more sufficient technology. And this is where I'm going to stop the history itself. And we're going to move to the part where every can actually talk about what money is. Actually. I hope this make sense. Ok. So it's just a little bit of recap on the history of money. Just to understand the evolution and all the issues we had in the past. And not just going to move to the next section, which is about what money is. So we can actually understand what bitcoin is. And let's start. 15. Chapter 4 - What is Money?: Money, money, money. So what is money? This is a very good question and this is a real rabbit hole. Money doesn't have actual volume. It's kind of like symbolic. So money could be shells. Metal, Alcorn is a piece of paper. The volume is what actually people place on it. And this is how we actually perceive money. And this is where we actually discussed in the previous chapter. Florida history is what we actually think it has volume and it has three primary functions. Just going to start diving into these free functions. So the number one is actually store of value. And the start of volume means it has to be due to a boss or it has to spend the time. And it also has to maintain the purchasing power. Because once you lose the purchasing power, then it doesn't involve any thing any longer. And it also has to be liquid. What it means, the liquid basically is you can instantly exchange it as soon as you need, as soon as you get money to buy something, then you can order the exchange so you can use your own money. And so basically, money serves in terms of like helps to communicate out the price of the goods and also helps to treat the goods in directly as well. And the second function is medium of exchange. And here, again, the price, it has to be stable. If it's constantly go up and down, then nobody knows where it goes up and down and it probably people don't want to use it, so it has to be stable and also have to be fungible, divisible, which we've already mentioned in the previous video. And also very important, needs to be widely accepted as well. So people across the globe, they all agree that they can use it and they also accept it, and therefore it's going to be also portable. And the third one is a unit of account. So it's basically, it's, you have a uniformity of measure are meant. For example, when you have cows as our example, like, all of them have different sizes. More or less. They have a standard size, but some might be a little bit smaller or fatter, skinnier. So it doesn't have exactly the same volume or what compared to, compared to a piece of paper which you can print based on how you set up your machine. It's going to be all exactly the same. And maybe all they have exactly the same value. So that's going to be also a very important feature. So as mentioned, all of these art functions of money, I hope this all makes sense. And this is just to really understand what money is. And remember, you can always watch Mike Maloney, the hidden secrets of money, which is very, very good and well explained. And now we're going to move to the next video, which is going to be bitcoin. See you in the next video. 16. Chapter 4 - Bitcoin Basics: Welcome back. In the previous video, we have covered the money. What actually money is the free parameter, the functions. And in this video, we're going to start dive into Bitcoin, how it was created, and why it is so important. And in the following video, we going to compare Bitcoin ASS of function of money. Remember these three functions which we covered. So what we're going to see like how Bitcoin can fulfill all of these functions. So you will see the real value of bitcoin. What I'm not going to talk about in this video is actually how you can actually, in rest or Bitcoin ESA investment have you can actually buy. However, I have created a separate course on this is perfect for beginners. If you feel like you actually would like to start investing or purchasing, I'm going to share the link and the end of this course so you can always have a look. So now let's start Bitcoin. So to clarify, bitcoin is actually a Peer-to-Peer Electronic Cash System. So remember when we mentioned that it was created by Satoshi Nakamoto, which we don't know if it's an individual or a group of people. So the white paper was written, which is a PDF in 2008. If you would like to read it. Again, I'm going to leave the link so you can actually read through if you're interested in. And it was basically to serve as a payment system and electronic payment system. And in order to function this electronic Prima system, because bitcoin exists only on a digital world. And using cryptography, again, if you would like to learn water, both keep, took a free, I'm going to leave a link for you so you can run water about cryptography, but this course is not about cryptography. And in 2009, the first Bitcoin transaction was executed. And that was when actually Bitcoin was born. So remember this is a traceless payment system. Remember when we talked about the block chain benefits, so Consensus and provenance. So this is a traceless. So just when you look at here, we have to just try to draw your attention here. And you have two individuals, they don't know each other. And Bitcoin is basically removing the middleman. So these two individuals, they can actually send money electronically and they don't have to pay high fees for a third party to, for example, send overseas. And they don't even have to trust each other. Because remember this is a trust less system and it is all a verified. So that was the main purpose for creating Bitcoin. And also another important is against inflation. So Bitcoin has 21 million. This is the maximum supply. So all our supply of Bitcoins, 21 million and approximately three millions left to be mind. Remember, Bitcoin is created by minors, by computers, and it is a free software. And this is very important because unlike feared money, you can just print them. Print. As we can see now, we are getting these 2020 money printing year, which can cause hyperinflation. Therefore, Bitcoin is created against the system. And one more thing I would like to also mention is you're going to hear a lot about sockets or Satoshi's. And basically the smallest unit of a bitcoin is Satoshi. Or some people just call sets. When people say stack sets, that means basically you're collecting these Satoshi's. So one Satoshi is 1 100th of a million for Bitcoin or orbit going. Or for example, if you take one FM radio muscle, so as example, It's going to be this amount of Bitcoins or is not a full Bitcoin, not even E half a bitcoin is this amount. Okay? So it's sets and it's just something to be aware of. Alright, so pretty much this is it. And also remember Bitcoin is also a, a network and a protocol which already covered in the previous section. And now we're going to move to the maximum where we can actually compare Bitcoin to money, how it actually can fulfill all of its functions. Let's start. 17. Chapter 4 - Bitcoin as Money: Hello, hello. I hope you're ready to dive deeper into the rabbit hole. So in this video, we're going to cover how bitcoin actually can fulfill the functions of basically sound money. But you need to keep in mind that there is currently no such a form of money that came tick all the boxes. Everything has a advantage and disadvantages. And at the moment, trying the source as a society trying to get the most beneficial form. But remember people using it for different purposes, for different locations, circumstances. So it is still under development. And if you see now here Bitcoin as a money. So remember we need to see, to check the most important features which are the store of value, medium of exchange, and also a unit of account. Not going to go through all the single points. I'm going to have this a little bit longer so you can actually have a read through plus you can always visit. But for example, one feature is all sorted. Bitcoin is durable so it cannot be destroyed. Well, technically cannot be destroyed. And but it has also some disadvantages as well. In terms of maintain, maintain purchasing power, it should maintain and actually provide other, PUT, a powerful purchasing power in the future. But at the moment it is very volatile and it's a tricky asset at the moment. And in terms of like widely accepted, it is an asset so it takes time for the Society, for the people to actually adopted, but the adoption is growing rapidly. That's for sure. And one very cool feature is definitely portable because you can take it going everywhere or any cryptocurrencies around over. Unlike gold, silver, or real estate, especially in real estate, you can't just really take it anywhere, right? And when it comes to gold and silver, it depending on how much you have. But imagine if you want to keep all your valve in golden silver Adele, you can't really just take it anywhere. So definitely this is also an advantage and definitely you can divide them so it is divisible. Remember when we talked about a Satoshi's such the small unit of w1. And in terms of the same relatively steep. But remember that was also a very important feature. So at the moment it is not stable. This is also an disadvantage, but many other parts is pretty much fulfilling and that is very important. Cara off or comparison I would like to share with you is when we can actually compare a bitcoin called and feared women. So these are another features as well, some extra features on top of the free functions. And if you already see without even just reading, you can see that feared money has so many red points and blue points. And three story when you see Bitcoin is everything isn't nearly green and pretty high. And gold is pretty much in-between, but it has a long history. So people trust called because of the history. And pretty much this is the only trait over money, I would say. Here is it doesn't have an established history yet. So we are still pretty early in the game. And again, if you think about investment, makes sure that you check out my course about how to get started in cryptocurrencies. And yes, So basically, in order to really understand Bitcoin as a money, you need to understand and called, you need to understand the monetary system, the Federal Reserve, a quantitative is in all of these to really understand why Bitcoin has limited supply and was created. But again, pretty much it offers soil solution for all of these issue. And another reminder to check out Mike Maloney, just a hidden secrets of money because that's, a brilliant cell is empty, explains the value of adding what's actually happening and what we can expect in the near future. So in order to protect your health, make sure that you do your research. And now we are going to last video of this chapter, which is going to be the bitcoin ecosystem. Let's start. 18. Chapter 4 - Bitcoin Ecosystem: Okay, let's start the last video of this chapter. So this going to be about the bitcoin ecosystem host, which already known by now because we covered most of it, but there is one small piece of information we just need to know about it. Do you have the full picture? And let's just dive into so don't worry, if it looks messy, is basically I was writing down these steps. Remember when we have a user or maybe interact with the block chain, the Bitcoin block chain. We have a so-called inviolate. And remember the valid contains the private key and a public key. So that's also very important. And let's see. Remember, user a would like to send a fool, but going to user B. And also remember that we have a network of computers. So here I would like to basically just highlight the fact that most of these computers, they are also called nodes if I haven't mentioned them. And all of the miners are, they also nodes? And that is small piece or small parts of the ecosystem, which is called SPV, is basically you only need to know that they do not have the full copy of the block chain. So in order to access the full copy of the block chain and they need to talk, interrupt with a full note, okay, so everything which is a circle, so they are nodes, they have a full copy of the block chain and same miners they also have, so they also note, but remember minors or the only ones. They can produce a block. So when a user a would like to send money to user B, first of all, everybody, all the participants, all nodes, basically the, they have this transaction which needs to be verified. So at the moment, this is a question mark because each of the participants, they have to agree, they have to verify. And sometimes when you send a transaction, you might have a notification that it takes either nor a certain number of verification or configuration, so that many times it needs to be confirmed. And then we move to the step three, which is basically when every single participants of the block Gim, basically DR. verified. And then remember, only the mind knows, only the miners can end the next block. And a block is, remember, is going to be full of transactions and it has a fixed size, so you can't overload them. So it has a fixed size. And then eventually when everything is verified, then our user B is going to receive the bitcoin. So basically, this is the full ecosystem. And in the last chapter, I'm going to talk about minors. So that's proof of work and also proof of stake. So by the end of that chapter, you really should have a solid understanding about this whole ecosystem, the blockchain and Bitcoin as well. I'm very excited to see you in the next chapter. 19. Chapter 5 - Introduction to Cryptocurrency: Welcome to chapter five, which is technically the last chapter of this course. As the sixth one is going to be just a wrap up and summary. So in this section, I'm going to cover the basics of cryptocurrencies apart from Bitcoin. I'm also going to cover why cryptocurrencies are hot. So the future of cryptocurrencies, and I will finish off, read The difference between proof of stake and proof of work. Remember the proof of work relates it to mining and a little bit about transaction as well. So you should have a solid understanding how blockchain and cryptocurrencies world overall. And this should give you a good foundation to actually move on and progress and build on this. Let's start. 20. Chapter 5 - What is Cryptocurrency?: Now let's talk about cryptocurrencies. So we know that Bitcoin was the first cryptocurrency, was the ever created. And now there are thousands of thousands of cryptocurrencies. And pretty much every day there is a new cryptocurrency. So what is a cryptocurrency? I kept a credit, is a digital or a virtual currency. And it is aimed to be a medium of exchange. To remember when we talked about this, a medium of exchange, they have to take some of the boxes and it's definitely not order cryptocurrencies canting the boxes or I would say the major 18, there are a few exceptions. So there are different types of cryptocurrencies, for example, that are stable corns. So the uprising is pretty much the same and usually the price is the same like as a dollar. And the not fluctuate over time and you can also send them overseas, internationally. You can also very nice interests as well. So stable coins on a very, very crucial and very important in this ecosystem. And there are also other coins like a member. When we talk about there are different blockchain platforms where you can build different applications. There is also a type of cryptocurrencies reach are in the market and also privacy coins, security tokens, or also exchange tokens. So everything has some kind of functions and you can't always compare one or the other because basically flip the courtesies, it creates a ecosystem. And it is really important to know that there are also very, very bad projects and that are also very, very good projects. But it is, but it takes time to find out which is the good one and which is the bad one. So just as a note, in the coming near future, I plan to have a building under a course about Altcoins. So everything which is not good is basically because Altcoins, so there is Bitcoin in the king and everything else ought gardens. And because there are thousands of times of cryptocurrencies and there is really something spotlight. You can get very dizzy and crazy. Which one to pick? And I tried to build a course and give you more information. So make sure that you restate your and the best way probably is through Twitter. But our real announced new course as well. So just get back to Victor courtesies and would like to show you a free websites I'm personally using and you can always use them as well. You can use only just one. But at least to demonstrate how you can actually find these coins or how we can actually, where you can find them. So good, some information. So the first one and mostly use is avert coin, index. And efficacy is quite nice and easy to read. Very subtle. That's why I really like it. And You can see Bitcoin any Theo as measured in the years of two major cryptocurrencies. But if you scroll down, I don't want to go too fast. But basically one page, personally I have set up for 100. Then you can go the next 100 and the next one. That's going to be probably an endless game. And you can adjust for the example by percentage. So this is like the 24 hours on the first 100 coins. And you can see like which are doing very bad today and which are the ones, the dream also ready val and keys. You can also choose if you want to see later 24 hours volume. So that's why you get all of these ranking. You can go by market capitalization. So that's how much money actually they, they have. And there are also different features. And the next one is coin Gekko, which is also very popular. And for example, here you can, it's easier to see just randomly. I don't know this coin and efficacies in ranking like over 800. So it's not the most popular coin ever. But what I wanted to show like you can also read the market gap here easily. When you convert to vote coin index. You can still see the market got back not every single coins rich. That's why I don't really like it. However, you can also see, whereas you can buy, for example, like girl, you combined on these exchanges and you can see the pair if you can buy with stable coins, Bitcoin, et cetera. And you can also go like show all, and you have all of these exchanges. It's a huge lists or you can buy light going many places, for example. What if I want to check this out? You can also scroll down and you can also see that you go the price. So you can see the price for the example. All the time. This is the price, it here you can check them market cap as well. You can also see over time how it's actually changing, which is kind of similar to the price. And then you have also more information on the side. And then you can also see where you can buy. So you've seen it's only free exchanges. Excuse me. And lastly, I would like to show the third one, which is also very popular. So again, it depends on what you prefer. But for me, for example, here is way too much information on trumped up probably again, I could adjusted. But here you can also check like seven days. So it's not just like 24 hours change, but you can also see on the same page, and I get 70 or Vdd they change. So how much they change using the vk vk time. And then you have the different categories. The fight him. I'm not sure if I mentioned the phi, which is actually I mentioned in the beginning when remember metallic wanting to create decentralized finance applications. And here you have the list. So just designed 45 coins. You have also a massive list. I'm not going done, but you can also categorize, or you can also have your favorite coins on a watch list in you have only going to see those coins. So you don't have to actually check or Docker. So I just have approximately someone here, but you can always add more. And of course there are other functions as well. But I just wanted to actually show you all of these information. You can go and have a play, see what's in the markers. You can always Google it. And yeah, we're going to move to the next video, which is going to about why these cryptocurrencies are so hot. 21. Chapter 5 - The Future of Cryptocurrency: The future of cryptocurrencies. I find it very essential to actually explain why it is important, because people said our tip-toes out that they are not here to stay. And this is not true. We already talked about the benefits of blockchain technology and you know, the cryptocurrencies using the block chain technology. So you already know many of the other advantages of cryptocurrencies. And when we talked about the money and the features of the money and also the functions. One important is it needs to be portable and also international. And you know, like real estate or gourd, you couldn't just transport anytime, anywhere. And therefore, cryptocurrencies are The Press suitable form of money that you can actually take it to anywhere and you don't even have to have actual wallet. And when you have so many coins them it actually pause your trousers, Dan. And if we remember like the Internet, for example, back in that time, everybody was skeptical and nobody really believed in the internet. And look at where we are now. Can you live without the Internet? Seriously? Can you live without the internet? And imaging those people? When the internet was invented. And this is the same 3D cryptocurrencies that are many people are skeptical, scared they want to stick to the old traditional power because this is what we, we grown up VIV, and used to. And we have to admit that we have to innovate and crypto currencies on a cutting edge technologies and innovation which transform the future of tradition of finance and our economy and also our financial freedom as well. So really cryptocurrencies Riyadh on the same path like the internet, it takes time for mass adoption. Adoption is growing that are more and more institutions coming up, say like, Hey, I'm buying Bitcoin, I'm buying a thallium. I have cryptocurrencies. So let's just have a look how many people or institutions. So here you see a square which is a major company. They also putting at least 1% of data assets, but their total assets of 1% is way bigger than ours. So basically support $50 million of investment. Or for example, now, this is my website by the way. I also produce news occasionally. So you can see like PayPal as well, which is a huge company. They are also setting off for cryptocurrencies payment from 2021, which is next year at the moment, I'm recording 2020. So as you can see, early 2020, they going to include cryptocurrencies on their platforms. You can also read this article if you had to my website and also the news. And for example, JP Morgan. So this is more or snowboard like JP Morgan or setting up a digital currency and the using block chain technology that he go. And here, if you Google, this guy's name might come pregnancies Nim. He is a billionaire and he's heavily invested in Bitcoin and maybe if helium as well, and when it was in what? But basically what I would like to say here is the adoption is here, people buying, maybe secretly bitcoin and other cryptocurrencies because they know they know that this is here to stay. And a rule like we to understand that this is not just forget or reach Greek. This is the future of our finance, which is very, very important. And the earlier you adopt and earlier you jump in, the better the options are. And yes, so if you would like to learn about how to get started in cryptocurrencies. Make sure that you actually check out my course. I relieve the link and of this chapter. And you can basically had up. And this is the course where actually you can learn all the basics or the fundamentals are lot more in-depth. It's a step-by-step tutorial. Have to set up different accounts with the exchange and also have to buy your first Bitcoin or Ethereum or any cryptocurrencies V dot fee as well, which is a very, very important also how you can actually earn passive income, where you can store them, what type of wallets that are in the market. And there is a lot more information into, so make sure that you actually check it out and don't be the last ones to adopt in the space because you will be left out, you know, make sure that you jump on the train when it leaves the platform and don't run after that rim because after maybe the next train is not coming. So briefly about the future of cryptocurrencies. 22. Chapter 5 - Proof of Work Vs. Proof of Stake: Now we got to the last part where you can actually get the last piece of the puzzle. And you should have now a lot more understanding of how actually blockchain and Bitcoin works and also mining as well. So remember this is not about mining, but I would like to explain a little bit more so you know, you can understand a load pattern. So there is going to be a session on proof of work raises proof of stake. And we're going to start with proof of work, which is about mining basically. So remember this is a consensus, Mohan hymns, all other columns. So this is a method of computers coming to an agreement and the transitions will be verified. So now again, we have a and B where a would like to send an orange Bitcoin to Person B and this is a transaction. So at the moment, remember I'm just trying to indicate transaction as R, t, and x. So you just understand. And everytime transactions, when it comes to Bitcoin, it comes with the fee. And remember men we had when we had our computers, the network. So I'm not going to start drawing them. But before the get the transactions, all of these transactions go to eat pool. So pool of transactions and some are bigger, some are smaller. So there are different size is, and also comes with a different phase. So let's see, like all of these computers or minors, because they can come and pick a transaction to pick up tons actions. And they can basically they need to solve. So this is a mine of a computer and they are plugged in and they need to solve a cryptographic puzzle. So in order to do that, they need to operate this computer. Maybe there will be more. It's just, just as example. And they have to use a lot of electricity. And remember when we talked about the disadvantages of blockchain, that it's not the best for the environment because there is all sorts of energy being used up. However, there are more innovation of using renewable energies. So it's getting better. So they spend money. So this course, dumb money. Okay? So this is that expanses basically the spending money on electricity to solve computer, basically cryptographic puzzle. And when will they solve a problem is related to the transactions. I'm not going to go into details because it's a little bit more complex. But basically, the fastest will be rewarded by transaction fee plus also by block reward. So you know, when there is a fee, they get fees as well plus block reward. So this way the yard incentivized financially to play by the rules. That's why we can remove a third parties or an authorities because we have a system in place and each of the computers, when there is a transaction and come to the, come into play. Every single participants who has, you know, the copy of the block chain. It's been it has to be verified. Ok. You already know all of these ones, so I'm not going to repeat myself. However, I would like to expand on the block reward as well. So we can imagine that transaction fee. But when it comes to block reward, you know, Bitcoin has every four years. Basically, the reward is cut into half. So you should initially, how much was the block reward, but let's say was 12. So basically it was 12. Bitcoin or something is just an example in terms of block reward. And then every four years it's been cut into half. So it becomes only six. And now another four years later, it becomes free, and then it becomes 1.5 by time. So the block reward will be reduced every four years. That means they will be also incentivized not to sell these Bitcoin because the reward will be less and less. So in order to sell, they need to have higher price in Bitcoin. I hope that makes sense. I relive some link about holding. So basically, this event is called ring. This is called the event. And you can also read upon, basically I just wanted to explain here is what is proof of work. So basically in a nutshell, these computers, the going to the pool of transactions, the pickup transactions that are different sizes with different fees. And the fastest of these computer, we'll be the one who can add the next block to the block chain. Okay, lets say this will be the next one. And therefore, this miner really get the transaction fee for all of these transactions very likely, plus also block reward. And they need to cover their fees. So in order to make money, they need to make sure that it's worth running their machines and paying all the electricity in order. Make them wanting. And now we're going to continue with proof of stake. Ok, so when it comes to proof of stake, remember this is just a different consensus mechanisms. They still use audit still uses a cryptographic algorithm. But the way how dirty words being distributed is different. And I just kept this one here to remember like it comes with lots of electricity. So proof of stake is trying to tackle this issue because of the environmental issues and also because of, because of skill ability. But basically, what you need to know is, for example, you need to have a certain amount of coins and you need to state and basically kind of like you look them in the pool and it's going to be used and you're going to mind, but it's just a different way of doing. And I'm not going to go much into f Because it's quite complex. But basically, let's see, we have here free individuals. I mean, you can have plenty of individuals like 100 thousand, but he's just for illustration. Let's see. One person has 50% of the whole network in terms of the coins, the other person has 60% and let's see, the other one has only ten. So approximately we get the full 100%. And therefore, the rewards in proof of steaks or piqued by, by chance. So it's randomly picked. And the person who has a lot more coins have lot higher chance. Let's say this person has 60% of chance of winning the forward. And compare to see who has only 10%. And this is a bit unfair because obviously you need to have more to get more rewards. And also there is no block rewards. That is only transaction fee when it comes to rewards. I mean, even with the miners, all the proof of work is a little bit unfair because the more than the strong god machine and powers you have, the more you can mine and money. And if your computer is very small, what is low? You're not going into get much reward. So there is no wrong or right consensus mechanism. But this is the two types image block chains using and for example, proof of stake, our mean value is a very interesting one because currently f value is standing here with the proof of work. So you can't mine by machines. However, it's moving now, proof of stake is going to be a long transition, and therefore is 2. Everybody's really excited. And the minimum to stake, you need to have the minimum of 32 theorems. If you don't have 32 names, then you cannot steak and cannot earn rewards by this consensus, myHobbies. However, obviously, there are different ways of earning interest, compound interest, even if you have a less than 32 theorems, which I'm explaining in my course. So make sure that you check it out. I guess this is it for proof of work and proof of stake is just basically to give you an overview, just a little bit of more of how everything works and how the system is for basically protected them and secured. So the last video of this chapter is going to have you can actually monitor and check your transactions. So they're a bit more about transactions. Let's check it out. 23. Chapter 5 - Transactions (Etherscan): Okay, so in this video, I would like to talk about transactions are a little bit more in depth, but bear in mind that it is quite a complex topic. But the reason to mention this topic in this course, because it is good to understand how a transaction works and a little bit about a wallet and also magic and actually check the transactions. So to start with. Remember we have the block chain. And also let's see we have a, a valid variable can store for example, bitcoin epithelium, and just a creek. What are no information? So this is a ledger wallet, which is apparently one of the safest wallet where you can store your cryptocurrencies. And it looks like a memory stick basically. And it looks like this. Anyway. So i will come to this in a second. So let's see. This wallet I have is for example, this ledger wallet. And this wallet stores my private key and also my buttons balance. And this is here a is a transaction. So when somebody, let's say my dad would like to send me one bit coin. Then it's going to appear in my balance. And it's going to be a marble at obviously. And for example, next day, I would like to send some Bitcoin, let's see, 0.2 for my friend and under 0.2 for my system. In order to do so, my wallet needs to connect to the block chain and check it whether I have this amount on my wallet. And once it's been approved, I can basically complete these transactions. And so you can just send only to one person. You can send several people, you can email, send it to yourself as well. But I'm not going to into the Phnom. It's basically just trying to explain them and the lipid. So everything which comes in is obviously input. And within the transaction you have also obviously output as violent. So now Islam just to block chin.com, which is a platform where you can check your Bitcoin transaction. So let's see if you go to blockchain.com. And if you go to Explorer, then you can check transactions. Or for example, these are the latest transactions. And if you click on one, just to explain, your wrist, say some quite crazy, messy stuff for sure. So basically this is a address. Let's see this word out for us. And this is where you received funds and also you, from this address, you can send to these atrocities. And there will be some information. But what you're not going to see is your balance. So your buttons and never will be displayed on the screen and you don't really know actually, who owns these addresses. Could be like the same person, owns all all of them. And they just sending money here and there. And for example, you will see like dot-dot input and the total output as well and also defeats. But you're not going to see the, the balance and the person who owns these ones. So it has lots of privacy. And I also would like to show you if the idiom transaction as well. We have is I connected my ledger wallet to my ether wallet.com. And here what I'm trying to do is basically I have different coins. And here you can actually put the address on. I'm going to send it. And you see that I also have some fees to pay because every transactions you pay some fees and then sending that transaction. And yeah, this pops ups. So when I got from transaction, I can go to check my status. So ethers can is a different side where I have the transaction hash. And as you can see, it's still pending. And it says approximately how long it will take to to confirm. So now you can see it was ordered the successful. And you can see like I was transferring from and some other details as well. What you can see my exact balance and you can see how much I was actually standing like this token Gollum and all sorts of v. So now at least you understand how actually can monitor all your transactions. And I will shed all of these link with you. So whenever you need, you can always just go and check them out. And I hope all of these makes sense. And I guess this is a time when actually need to finish this chapter. And in the next one, I'm just going to have a wrap up and say goodbye. So I see you in the last chapter. 24. Wrap Up: Welcome to Chapter 6, which is our closing video for this course. I hope you really enjoyed this course and you learned a lot. And if you feel it has any benefits, you can also share with your friends or family. And of course, you can always leave early view or comment, which I highly appreciate also as a friendly reminder, if you would like to carry on with the cryptocurrency Germany, which is very interesting and exciting as well. Then remember, I have a course for beginners how to get started with cryptocurrencies, where you can learn a lot more in depth about Bitcoin as investment. Also different types of wallets, benefits and advantages where you can store your cryptocurrencies. Also, how you can actually buy and sell those using different exchanges and risk and mistakes to avoid, which is really important, especially when you get things started. And most importantly, how we can actually make passive income out of your clip those. So if you feel to learn all of these springs, I'm going to leave the link somewhere at discourse where you can actually find it and follow up. And also highlighted government to follow me on Twitter. Now because I need many followers. The reason is because there is a place I'm going to publish when I have a new course, I have quite a few course in my mind to build. So make sure that you stay tuned. Plus I'm already sharing market inside what's happening in the cryptocurrency industry and in our economy in general. So that's a good place to actually educate yourself as well as an extra bonus. And I guess this is the time when actually I have to close this course. And make sure that you always take care to make sure that you do always extra research because that is really important. And have a good day or evening wherever you are and enjoy life. Buh-bye.