Bitcoin is a decentralized cryptocurrency. It allows  users to transact directly with one another using a ‘peer-to-peer’ platform; removing  the need for a central intermediary such as a bank.

The transactions are verified by the network through the use of cryptography and then recorded in a public distributed ledger called a blockchain.  It’s “permissionless” which means anyone can join the network and participate in the process. The software is also completely open source and no one person or corporation control it. For more see: https://boinnex.com/what-is-bitcoin/

Like Bitcoin, it is an open-source, public, blockchain-based distributed system. The native coin for the platform is called Ether.

There are key differences in the technology, with Ether referred to as a 2nd generation cryptocurrency that include a decentralized software platform, enabling Smart Contracts and Distributed Applications (DApps) to be built and run.

Ethereum has a vision to become the ‘World Computer’ that would decentralize the existing client-server model that most systems use today.

The platform was developed by the Ethereum Foundation, a nonprofit Swiss organization. For more see: https://boinnex.com/what-is-ethereum/

A smart contract is a programmable agreement that will self execute based on trigger events defined. Unlike a traditional contract or agreement it is written in code and understandable by a machine.

The first Bitcoin specification and proof of concept was published in 2009 by Satoshi Nakamoto. Ethereum was proposed in late 2013 by Vitalik Buterin.

In simple terms the price is determined by supply and demand. 

The price can show volatility as the market is still relatively thin, lacks a lot of institutional capital, and sentiment is often driven by media coverage (positive or negative).

A wallet is used to store, access, send and receive your cryptocurrency. It’s analogous to a physical wallet you keep in your pocket, but this is used to secure your cryptocurrency.

There’s  different types of wallets such as hardwallets, mobile wallets, online wallets, desktop wallets and paper wallets. 

There’s also the idea of hot vs cold which is simply whether or not they are connected to the internet.

A bitcoin paper wallet is a public and private key printed together. Bitaddress.org and Walletgenerator.net are free open source options to print a paper wallet and ETHAdress can be used to create an Ethereum paper wallets.

The Ledger Nano S hardware wallet is a good option for extra security.

It depends on the monetary policy that the particular coin follows. Some have a hard cap on the supply. For example, only 21 million bitcoins will ever be created and this is cap is built into the protocol. Ether on the other hand does not have a hard cap.

Put very simply, cryptocurrency is represented by an entry in the blockchain associated to a public key. In order to move currency around, exchange it, make a purchase with it, or convert it back to FIAT money, your private key is required to unlock it.
If you lose your private key, your cryptocurrency is essentially lost. This is why it is very important to consider how your private keys are stored and backed up.

There’s a growing number of companies accepting cryptocurrency. Many large companies like Microsoft and Expedia accept bitcoin payments. You can find a list of companies here.
Keep an eye on our blog for updates on local Irish companies accepting crypto!