zmint Blockchain Introduction

Transcription

1 zmint Blockchain Introduction Recorded November 2017

2 Introduction for Beginners We are going to introduce you to some new words, and try to make it simple When the Internet was first released to the public, it was hard to access. Today, it is on every phone, billions of people around the world use the Internet every day without even thinking about it. Cryptocurrency and blockchain is going to be as big a revolution as the Internet. It is still in its early days. It has been tested and flourished amongst the nerds and now it is in the first stages of crossing the chasm into mainstream acceptance.

3 What is BitCoin It s a bank account, that s not in any bank. Instead, it s on the Internet. Only you can access it, and you can get to it from anywhere in the world and use it anywhere in the world. Payments are much faster and fees are much less. With a bank account, the money has to go somewhere. With cryptocurrency, it goes to a password protected wallet and any transfers of it are recorded on a public ledger called a blockchain. BitCoin launched in 2009, it was the first majorly successful cryptocurrency, and it is still the biggest. The first trades were less than 1 cent per BitCoin, then in July 2010 in 5 days it shot up 1000% to 8 cents. By February of the next year it was worth the same as a US dollar I am recording this in November 2017, it is worth $110 billion and 1 BitCoin is $6750.

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5 What Can You Do With Cryptocurrency? Send money faster and cheaper than banks Save it BitCoin excites people as a store of value because it goes up in relation to the USD Spend it it is possible to rent villas, buy castles, apartments, cars, flights with cheapair.com, travel with Expedia, food at Subway and pizzaforcoins, flowers, gift cards Create it mining Earn it creating content like videos and blog posts, selling goods and services in the global marketplace

6 What is the BlockChain It s a public ledger of transactions It s a network of computers and wallets Information on it can t be changed. It s recorded forever. Everyone shares the same information, which prevents fraud and means you can trust the transactions. Powerful computers called miners compete to be the one that writes information to the blockchain. 144 blocks are created every day. The miners get a reward in BitCoins. Every 210,000 blocks, the reward drops in half. It is 12.5 coins ($85,000) today, and will halve to 6.25 coins in June Every 10 minutes, mining computers collect a few hundred pending BitCoin transactions and turn them into mathematical puzzles. Whoever is first to solve a puzzle, writes it to the blockchain where it is confirmed by other computers in the network.

7 What is Ethereum? competitor to BitCoin Introduces two concepts that are key One is smart contracts. Now it is not just a coin, a currency, a means of payment it is a tradeable token which has software attached. The software controls things like transfers, payments, refunds; but it can also be used for things like voting, or a token can represent a share in a company The other is Minting and Mining. Ethereum can also be mined like BitCoin. But you can create your own coins using their software. This is leading to an explosion of new tokens. Ethereum is the killer app for ICOs. Tokens that are not BitCoin are generally known as alt coins. Most of the new tokens being created are on the Ethereum platform.

8 What is an ICO? Types of Token An Initial Coin Offering. These are sometimes called a Token Sale Event or a Token Crowdsale. Some types of Token are classified as a security by financial regulators, which means they should only be purchased by professional investors. An example of this would be Etherical.io, which I will talk about in a separate video. Another type of token is an altruistic coin, philanthropic token, also known as a cause coin. An example would be SHELTERCOIN, which I will talk about in a future video. A third type is a Utility Token. These are used for in-app purchases within software, and are not considered securities. An example would be Skype credits.

9 How Do I Get BitCoin, Ethereum, and other alt-coins? You can purchase tokens with credit cards, PayPal, wire transfer, or deposit cash at a BitCoin ATM. You need a wallet. There are many free solutions. In my next video I will walk you through how to get an account and set up your wallet to receive alt-coins.