What is Blockchain?
This is a technology which main focus is the continuous operation of the chain of blocks. All transactions between the parties are recorded from the very beginning and stored in an updated registry, which can be viewed by each system’s member. Also here can be stored literally any personal information of the person, from road fines, to certificates of marriage. The general idea is not just Bitcoin or money at all, but the creation of a field of data independence and security. The information here is stored in a constantly updated register, where blocks are linked to each other as train wagons connection.
What is Ethereum?
Ethereum is an open-source, public, blockchain-based distributed computing platform and operating system featuring smart contract (scripting) functionality. It supports a modified version of Nakamoto consensus via transaction based state transitions. Along with Bitcoin, Ethereum is considered to be one of the pioneer platforms in distributed ledger and blockchain technology.
What is GAS?
“Gas” is a some kind of “fuel” that allows financial transactions between the Ethereum crypto-currency wallets. When you enter the purse number and transfer amount in your office at MyEtherWallet, the minimum and recommended amount of "Gas" will be set in the lower field of "GasLimit", which miners received by the transfer. If you set the figure lower, it is more likely that the transaction will not be processed at all. "Gwei" can speed up the process. This is a name of one Gas unit cost. The higher it is, the faster the translation will be made. You can find the average cost of 1 gas on ethstats.net. In sum, you will find out how much commission you will pay for your transfer in dollars.
What is Initial Coin Offering (ICO)?
ICO (Initial Coin Offering) is a crypto-currency analogue of an IPO (initial public offering): a new model of crowdfinding. New projects attract investments in crypto-currency for the successful launch or further development during the ICO. Tokens are shares in this case Investors can’t influence on company’s decisions, but they can buy finished product for tokens further, to pay company services or trade on crypto-exchanges.
When did ICO first appear and why it became highly popular?
The first ICO project was called “Mastercoin” (then renamed to “Omni”) launched on July 31, 2013. One year later Ethereum crowdsales was started. Bitcointalk forum was some kind of crowdfinding platform, and the project found 500 investors who invested 5,000 BTC ($ 500,000) in total. The main target of Mastercoin is to help while creating encrypted currencies and trade it without tangible difficulties. ICO became popular because of three main reasons: quick collection of necessary funds in cryptocurrency, absence of bureaucratic delays during the process, profitable investment prospects for everyone with a minimum entry threshold in ICO.
How to become an investor and get on the ICO (Pre-ICO)?
To become an investor in ICO you need: - A wallet with a positive balance of BTC, ETH, LTC, NEM (XEM); - Minimal knowledge of terms and Blockchain technology; - Attentiveness when studying the ICO you’re going to invest; - Understanding of risks and patience. Check special resources constantly to find ICO. This is a Blockchain-themed trackers and forums with links to official pages of such projects.
What is Pre-ICO?
It’s a useful tool to prepare the basic ICO that provides the chance to fix any technical errors on practice. A small number of tokens for minimal cost can be bought during Pre-ICO, and the first investors will be rewarded on the difference between the current and future prices to the maximum.
How to choose ICO for investment?
ICO is turning into a source of future income, if you give due attention to WhitePaper and RoadMap. It is necessary to monitor the project's potential independently and not to yield to the “experts” recommendations. The correct actions are: to read WhitePaper, monitor the situation at Bitcointalk forum as highly trusted, learn the list of advisors. But the well-known advisors are not an indicator of success; you need to communicate with people about the details of the project. Also study the situation at popular trackers, see the social channels of ICO and publications. The best result is given by combining all of the above methods according to the situation.
What standards of tokens exist?
Standardization is a kind of license that each script issued over the block on a certain platform receives. This status determines the value and possibility of the unit's participation in trades. New standards constantly appear and eliminate the problems of older versions. For example, ERC-20 is a standard for the whole Ethereum network.
How to add a purchased token to your Ethereum wallet?
After buying tokens for ICO and authorization at MyEtherWallet, find “Tokens” tab in “transaction history”. Then you’ll go to Ethplorer.io, where you can see tokens and the balance of each one. Then: - In the MyEtherWallet cabinet, click on the button "Add your own token". - In the address field, add a smart contract. - In the field with the token symbol, copy its short name. - In the field with the crushing, copy the needed number of Decimals. - Click "Save" and check the balance.
What if all the tokens were bought?
ICO is not the only way to buy tokens; you can do it sometime later at exchanges.
What is the economy of tokens and why is it important to understand it?
The economy of the token is a system and principles for creating, issuing and distributing tokens within the company and among investors. Or we’re talking about new cryptography-based economy. Correct knowledge helps to find fake ICOs and also predict inflation, notice speculative actions, control token emission and save money as a whole.
What is Crowdsdale?
This is a kind of crowdfunding with the other nature of assets. Investors, according to the old scheme, fold their money through crypto-currencies to develop an ICO start-up. But instead of shares and actual pre-order for the product, depositors receive tokens in exchange for their own crypto-investment.
What is a Smart Contract and how it can look like?
Smart Contract is an independent, safe, reliable and accurate algorithm that is built into the Blockchain and executed by its nodes. Smart contract automates the transaction process between the seller and the buyer, without resorting to the services of intermediaries. It works on domino principle, when the first action is followed by the second and so by the chain according to the written code. Smart contracts can be written on any Blockchain, but Ethereum provides unlimited abilities for writing the algorithm and further work with it. Smart contracts can be used practically in any business area.
What is Crowdsale contract?
It is needed to distribute tokens among investors, team members and members of the bounty program. This is a really simple thing. You enter the number on investments you want when buying tokens during the ICO. In the same form, you see the count and the equivalent in the tokens immediately, which you get by spending the selected amount. Then, you copy the system-generated address and paste it into the corresponding field in your Ethereum purse. An important detail, always check the amount of GAS limit otherwise the transaction can be stuck indefinitely. After sending the payment, you receive your tokens directly to the Ethereum address.
What is Roadmap?
RoadMap (Road Map) is a step-by-step scenario for implementing a project on an ICO with fixed deadlines. This allows investors to see a detailed schedule of all stages, key periods of development and financial criteria.
What is SCAM?
SCAM is a fraud. This is a regular thing for ICOs and comes into contact with 95% of exceeded campaigns. Scam is classified by: - Time - short-term and long-term; - Complexities - simple, medium and complex; - The subjective side - deception is planned initially or it comes during the project’s implementation. Irrevocable loss of money is a result of SCAM for investor.
What is Bounty?
Bounty is a marketing tool for promoting ICO. Organizers create an information platform for a massive advertising event. In exchange for actions and results, rewards are to be paid with tokens. Most often Bounty campaigns are published in large crypto-communities like bitcointalk, golos and other ones where is concentrated a large number of digital money fans.