FAQs

A smart contract is a self-executing contract that automatically enforces the terms of a contract when certain conditions are met. It is a set of instructions that are written in code and stored on a blockchain.

Cryptocurrency is a digital or virtual currency that uses cryptography for security and operates independently of a central bank. Fiat currency is a physical or digital currency that is issued and backed by a central government. Cryptocurrency is decentralized and operates on a peer-to-peer network, while fiat currency is centralized and controlled by a government.

Unlike Bitcoin and other decentralized cryptocurrencies, a Central Bank Digital Currency (CBDC) would be a digital currency backed by the federal reserve, enabling a widely accessible digital payment system with the safest digital asset available to the public.

A centralized cryptocurrency exchange is controlled by a central authority and manages all transactions. A decentralized cryptocurrency exchange is built on a decentralized blockchain network and allows users to trade cryptocurrencies directly with one another without the need for a central authority.

A crypto wallet seed is a mnemonic phrase used to generate private keys for a wallet. It is a sequence of words that can be used to restore access to a wallet if the private keys are lost.

A public key and a private key are a pair of unique cryptographic keys. The public key is used for encrypting, and the private key is used for decrypting. Public keys can be shared with others, while private keys should be kept secret.

A hard fork is a split in the blockchain, creating a new version of the cryptocurrency. This happens when a group of users disagree with the current rules of the blockchain and decide to create a new version with different rules. A soft fork is a change to the blockchain protocol that is backward-compatible, meaning that it does not create a new version of the cryptocurrency.

Mining is the process of using computer power to validate transactions and add them to the blockchain, usually in exchange for a reward in the form of cryptocurrency. Miners use specialized software to solve complex mathematical problems, which helps to secure the network and validate transactions. The benefits of mining include earning a reward in the form of cryptocurrency and helping to secure the network.

The market capitalization of the cryptocurrency industry fluctuates depending on the current price of cryptocurrencies. You can check the current market capitalization on a cryptocurrency price tracker such as Coinmarketcap, CoinGecko or Coindesk.