Sunday, May 19, 2024

Cryptocurrency and Blockchain explained in Sinhala

A cryptocurrency (or “crypto”) is a digital currency that can be used to buy goods and services, but uses an online ledger with strong cryptography to secure online transactions. Much of the interest in these unregulated currencies is to trade for profit, with speculators at times driving prices skyward.

A blockchain is a growing list of records, called blocks, that are linked together using cryptography. Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data (generally represented as a Merkle tree). The timestamp proves that the transaction data existed when the block was published in order to get into its hash. As blocks each contain information about the block previous to it, they form a chain, with each additional block reinforcing the ones before it. Therefore, blockchains are resistant to modification of their data because once recorded, the data in any given block cannot be altered retroactively without altering all subsequent blocks.

Ethereum is a decentralized, open-source blockchain with smart contract functionality. Ether is the native cryptocurrency of the platform. After Bitcoin, it is the second-largest cryptocurrency by market capitalization. Ethereum is the most actively used blockchain.

Smart Contract
A smart contract is a self-executing contract with the terms of the agreement between buyer and seller being directly written into lines of code. The code and the agreements contained therein exist across a distributed, decentralized blockchain network.

Consensus Algorithms
A consensus algorithm is a mechanism that allows users or machines to coordinate in a distributed setting. It needs to ensure that all agents in the system can agree on a single source of truth, even if some agents fail. In other words, the system must be fault-tolerant.

◾ Proof-of-Work.
◾ Proof-of-Stake.
◾ Delegated Proof-of-Stake.
◾ Leased Proof-Of-Stake.
◾ Proof of Elapsed Time.
◾ Practical Byzantine Fault Tolerance.
◾ Simplified Byzantine Fault Tolerance.
◾ Delegated Byzantine Fault Tolerance.

0:00 Introduction
0:36 What is cryptocurrency?
3:34 Coin vs Token
4:51 Notice
5:19 How does a cryptocurrency internally works?
9:20 Mining and proof of work algorithm
14:24 Security of cryptocurrencies
16:35 Eon Musk and cryptocurrency
17:43 Proof of stake Future Topics
18:25 Ethereum 2.0
19:50 End

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