More than investing
Cryptocurrencies are a technological innovation. Their value goes beyond financial speculation.
How Bitcoin works
Bitcoin uses Proof of Work (PoW). Miners solve computational problems to validate transactions and create new blocks.
Ethereum and the EVM
Ethereum introduced the Ethereum Virtual Machine (EVM), enabling smart contracts. Ethereum 2.0 migrated to Proof of Stake (PoS).
Consensus mechanisms
Proof of Work (PoW)
Proven security but high energy consumption. Used by Bitcoin and Litecoin.
Proof of Stake (PoS)
Validators stake tokens as collateral. More efficient. Used by Ethereum, Solana, and Cardano.
Delegated Proof of Stake (DPoS)
Token holders vote for delegates. Higher throughput. Used by EOS and TRON.
Transactions and fees
Each transaction pays a fee to the validator/miner. Fees vary by network congestion.
Wallets and security
Cold wallets (hardware) vs hot wallets (software). The seed phrase is the master key. Never share it.
Conclusion
Cryptocurrencies are a technological revolution. At Vynta we explore the underlying technology of cryptocurrencies to identify business innovation opportunities.