Ecoer Logo
VOTING POWER100.00%
DOWNVOTE POWER100.00%
RESOURCE CREDITS100.00%
REPUTATION PROGRESS0.00%
Net Worth
0.634USD
STEEM
6.495STEEM
SBD
0.459SBD
Effective Power
5.011SP
├── Own SP
0.629SP
└── Incoming Deleg
+4.381SP

Detailed Balance

STEEM
balance
6.495STEEM
market_balance
0.000STEEM
savings_balance
0.000STEEM
reward_steem_balance
0.000STEEM
STEEM POWER
Own SP
0.629SP
Delegated Out
0.000SP
Delegation In
4.381SP
Effective Power
5.011SP
Reward SP (pending)
0.003SP
SBD
sbd_balance
0.448SBD
sbd_conversions
0.000SBD
sbd_market_balance
0.000SBD
savings_sbd_balance
0.000SBD
reward_sbd_balance
0.011SBD
{
  "balance": "6.495 STEEM",
  "savings_balance": "0.000 STEEM",
  "reward_steem_balance": "0.000 STEEM",
  "vesting_shares": "1022.784750 VESTS",
  "delegated_vesting_shares": "0.000000 VESTS",
  "received_vesting_shares": "7120.875056 VESTS",
  "sbd_balance": "0.448 SBD",
  "savings_sbd_balance": "0.000 SBD",
  "reward_sbd_balance": "0.011 SBD",
  "conversions": []
}

Account Info

nametruantlife
id716216
rank595,140
reputation55732340
created2018-02-05T09:07:12
recovery_accountsteem
proxyNone
post_count1
comment_count0
lifetime_vote_count0
witnesses_voted_for0
last_post2018-02-05T16:25:30
last_root_post2018-02-05T16:25:30
last_vote_time1970-01-01T00:00:00
proxied_vsf_votes0, 0, 0, 0
can_vote1
voting_power0
delayed_votes0
balance6.495 STEEM
savings_balance0.000 STEEM
sbd_balance0.448 SBD
savings_sbd_balance0.000 SBD
vesting_shares1022.784750 VESTS
delegated_vesting_shares0.000000 VESTS
received_vesting_shares7120.875056 VESTS
reward_vesting_balance6.134436 VESTS
vesting_balance0.000 STEEM
vesting_withdraw_rate0.000000 VESTS
next_vesting_withdrawal1969-12-31T23:59:59
withdrawn0
to_withdraw0
withdraw_routes0
savings_withdraw_requests0
last_account_recovery1970-01-01T00:00:00
reset_accountnull
last_owner_update1970-01-01T00:00:00
last_account_update1970-01-01T00:00:00
minedNo
sbd_seconds0
sbd_last_interest_payment2018-02-05T17:58:39
savings_sbd_last_interest_payment1970-01-01T00:00:00
{
  "active": {
    "account_auths": [],
    "key_auths": [
      [
        "STM5pCugd8wBKLeLUwEuRygKwYYLUSuuEWFRp42RiqdUmNZEV91Ah",
        1
      ]
    ],
    "weight_threshold": 1
  },
  "balance": "6.495 STEEM",
  "can_vote": true,
  "comment_count": 0,
  "created": "2018-02-05T09:07:12",
  "curation_rewards": 0,
  "delegated_vesting_shares": "0.000000 VESTS",
  "downvote_manabar": {
    "current_mana": 2035914951,
    "last_update_time": 1779090039
  },
  "guest_bloggers": [],
  "id": 716216,
  "json_metadata": "",
  "last_account_recovery": "1970-01-01T00:00:00",
  "last_account_update": "1970-01-01T00:00:00",
  "last_owner_update": "1970-01-01T00:00:00",
  "last_post": "2018-02-05T16:25:30",
  "last_root_post": "2018-02-05T16:25:30",
  "last_vote_time": "1970-01-01T00:00:00",
  "lifetime_vote_count": 0,
  "market_history": [],
  "memo_key": "STM7fcE1DJN6SUdRVb2dgPoKerfofSTz6mjzu1KxrVicyCHytzXib",
  "mined": false,
  "name": "truantlife",
  "next_vesting_withdrawal": "1969-12-31T23:59:59",
  "other_history": [],
  "owner": {
    "account_auths": [],
    "key_auths": [
      [
        "STM79D9wW3b5fGSzf2BGV54UR6WYf6Zv4wcr4xAfb6hv13F9piPFs",
        1
      ]
    ],
    "weight_threshold": 1
  },
  "pending_claimed_accounts": 0,
  "post_bandwidth": 0,
  "post_count": 1,
  "post_history": [],
  "posting": {
    "account_auths": [],
    "key_auths": [
      [
        "STM57iVgRPcFu4bj1y8v8HF9VUqN34cvtDk2Ark8YUGeuNVD6pS6A",
        1
      ]
    ],
    "weight_threshold": 1
  },
  "posting_json_metadata": "",
  "posting_rewards": 6,
  "proxied_vsf_votes": [
    0,
    0,
    0,
    0
  ],
  "proxy": "",
  "received_vesting_shares": "7120.875056 VESTS",
  "recovery_account": "steem",
  "reputation": 55732340,
  "reset_account": "null",
  "reward_sbd_balance": "0.011 SBD",
  "reward_steem_balance": "0.000 STEEM",
  "reward_vesting_balance": "6.134436 VESTS",
  "reward_vesting_steem": "0.003 STEEM",
  "savings_balance": "0.000 STEEM",
  "savings_sbd_balance": "0.000 SBD",
  "savings_sbd_last_interest_payment": "1970-01-01T00:00:00",
  "savings_sbd_seconds": "0",
  "savings_sbd_seconds_last_update": "1970-01-01T00:00:00",
  "savings_withdraw_requests": 0,
  "sbd_balance": "0.448 SBD",
  "sbd_last_interest_payment": "2018-02-05T17:58:39",
  "sbd_seconds": "0",
  "sbd_seconds_last_update": "2018-02-05T17:58:39",
  "tags_usage": [],
  "to_withdraw": 0,
  "transfer_history": [],
  "vesting_balance": "0.000 STEEM",
  "vesting_shares": "1022.784750 VESTS",
  "vesting_withdraw_rate": "0.000000 VESTS",
  "vote_history": [],
  "voting_manabar": {
    "current_mana": "8143659806",
    "last_update_time": 1779090039
  },
  "voting_power": 0,
  "withdraw_routes": 0,
  "withdrawn": 0,
  "witness_votes": [],
  "witnesses_voted_for": 0,
  "rank": 595140
}

Withdraw Routes

IncomingOutgoing
Empty
Empty
{
  "incoming": [],
  "outgoing": []
}
From Date
To Date
steemdelegated 4.381 SP to @truantlife
2026/05/18 07:40:39
delegateetruantlife
delegatorsteem
vesting shares7120.875056 VESTS
Transaction InfoBlock #106152320/Trx e69baedb93c329920df5d6de22de8a6ba3c8b6c4
View Raw JSON Data
{
  "block": 106152320,
  "op": [
    "delegate_vesting_shares",
    {
      "delegatee": "truantlife",
      "delegator": "steem",
      "vesting_shares": "7120.875056 VESTS"
    }
  ],
  "op_in_trx": 0,
  "timestamp": "2026-05-18T07:40:39",
  "trx_id": "e69baedb93c329920df5d6de22de8a6ba3c8b6c4",
  "trx_in_block": 0,
  "virtual_op": 0
}
steemdelegated 2.713 SP to @truantlife
2026/05/13 09:56:24
delegateetruantlife
delegatorsteem
vesting shares4408.664651 VESTS
Transaction InfoBlock #106011744/Trx 302f71e459eb6c189c3d10c663bcaa152e19e05e
View Raw JSON Data
{
  "block": 106011744,
  "op": [
    "delegate_vesting_shares",
    {
      "delegatee": "truantlife",
      "delegator": "steem",
      "vesting_shares": "4408.664651 VESTS"
    }
  ],
  "op_in_trx": 0,
  "timestamp": "2026-05-13T09:56:24",
  "trx_id": "302f71e459eb6c189c3d10c663bcaa152e19e05e",
  "trx_in_block": 1,
  "virtual_op": 0
}
steemdelegated 4.389 SP to @truantlife
2026/04/26 06:50:42
delegateetruantlife
delegatorsteem
vesting shares7133.390812 VESTS
Transaction InfoBlock #105519771/Trx 22237f8236bbc0f082e67c80764507f3ac8cc044
View Raw JSON Data
{
  "block": 105519771,
  "op": [
    "delegate_vesting_shares",
    {
      "delegatee": "truantlife",
      "delegator": "steem",
      "vesting_shares": "7133.390812 VESTS"
    }
  ],
  "op_in_trx": 0,
  "timestamp": "2026-04-26T06:50:42",
  "trx_id": "22237f8236bbc0f082e67c80764507f3ac8cc044",
  "trx_in_block": 0,
  "virtual_op": 0
}
steemdelegated 2.738 SP to @truantlife
2026/01/24 03:44:33
delegateetruantlife
delegatorsteem
vesting shares4450.211470 VESTS
Transaction InfoBlock #102875691/Trx a13fdd1606fb8bd5d81998c4071c3a7b5ba2546f
View Raw JSON Data
{
  "block": 102875691,
  "op": [
    "delegate_vesting_shares",
    {
      "delegatee": "truantlife",
      "delegator": "steem",
      "vesting_shares": "4450.211470 VESTS"
    }
  ],
  "op_in_trx": 0,
  "timestamp": "2026-01-24T03:44:33",
  "trx_id": "a13fdd1606fb8bd5d81998c4071c3a7b5ba2546f",
  "trx_in_block": 4,
  "virtual_op": 0
}
steemdelegated 2.839 SP to @truantlife
2024/12/17 22:53:15
delegateetruantlife
delegatorsteem
vesting shares4614.430667 VESTS
Transaction InfoBlock #91321885/Trx 0d937073e60d8ea36f17e2956bd95cdc782df4dc
View Raw JSON Data
{
  "block": 91321885,
  "op": [
    "delegate_vesting_shares",
    {
      "delegatee": "truantlife",
      "delegator": "steem",
      "vesting_shares": "4614.430667 VESTS"
    }
  ],
  "op_in_trx": 0,
  "timestamp": "2024-12-17T22:53:15",
  "trx_id": "0d937073e60d8ea36f17e2956bd95cdc782df4dc",
  "trx_in_block": 4,
  "virtual_op": 0
}
steemdelegated 2.943 SP to @truantlife
2023/11/14 14:31:33
delegateetruantlife
delegatorsteem
vesting shares4783.564199 VESTS
Transaction InfoBlock #79875966/Trx af9a7dbfe4c109018ab9ac076a96f10129859128
View Raw JSON Data
{
  "block": 79875966,
  "op": [
    "delegate_vesting_shares",
    {
      "delegatee": "truantlife",
      "delegator": "steem",
      "vesting_shares": "4783.564199 VESTS"
    }
  ],
  "op_in_trx": 0,
  "timestamp": "2023-11-14T14:31:33",
  "trx_id": "af9a7dbfe4c109018ab9ac076a96f10129859128",
  "trx_in_block": 2,
  "virtual_op": 0
}
steemdelegated 4.750 SP to @truantlife
2023/09/22 12:01:06
delegateetruantlife
delegatorsteem
vesting shares7720.472985 VESTS
Transaction InfoBlock #78364810/Trx 71f8734d0d5b0c48fa73753ea9b68ad2ac5340fa
View Raw JSON Data
{
  "block": 78364810,
  "op": [
    "delegate_vesting_shares",
    {
      "delegatee": "truantlife",
      "delegator": "steem",
      "vesting_shares": "7720.472985 VESTS"
    }
  ],
  "op_in_trx": 0,
  "timestamp": "2023-09-22T12:01:06",
  "trx_id": "71f8734d0d5b0c48fa73753ea9b68ad2ac5340fa",
  "trx_in_block": 1,
  "virtual_op": 0
}
steemdelegated 4.887 SP to @truantlife
2022/11/03 19:17:57
delegateetruantlife
delegatorsteem
vesting shares7942.524423 VESTS
Transaction InfoBlock #69122333/Trx 2c1c947edb52bf7e779d1d4b386c22be5584c583
View Raw JSON Data
{
  "block": 69122333,
  "op": [
    "delegate_vesting_shares",
    {
      "delegatee": "truantlife",
      "delegator": "steem",
      "vesting_shares": "7942.524423 VESTS"
    }
  ],
  "op_in_trx": 0,
  "timestamp": "2022-11-03T19:17:57",
  "trx_id": "2c1c947edb52bf7e779d1d4b386c22be5584c583",
  "trx_in_block": 4,
  "virtual_op": 0
}
steemdelegated 5.022 SP to @truantlife
2022/01/18 00:21:45
delegateetruantlife
delegatorsteem
vesting shares8162.632024 VESTS
Transaction InfoBlock #60825422/Trx b25d5c5815523f395b61bd9adf06eabef76e63ec
View Raw JSON Data
{
  "block": 60825422,
  "op": [
    "delegate_vesting_shares",
    {
      "delegatee": "truantlife",
      "delegator": "steem",
      "vesting_shares": "8162.632024 VESTS"
    }
  ],
  "op_in_trx": 0,
  "timestamp": "2022-01-18T00:21:45",
  "trx_id": "b25d5c5815523f395b61bd9adf06eabef76e63ec",
  "trx_in_block": 24,
  "virtual_op": 0
}
steemdelegated 5.136 SP to @truantlife
2021/06/14 07:29:15
delegateetruantlife
delegatorsteem
vesting shares8346.826312 VESTS
Transaction InfoBlock #54615672/Trx 3ffa50e418d750ed1c641af6d637c582c3b23ef1
View Raw JSON Data
{
  "block": 54615672,
  "op": [
    "delegate_vesting_shares",
    {
      "delegatee": "truantlife",
      "delegator": "steem",
      "vesting_shares": "8346.826312 VESTS"
    }
  ],
  "op_in_trx": 0,
  "timestamp": "2021-06-14T07:29:15",
  "trx_id": "3ffa50e418d750ed1c641af6d637c582c3b23ef1",
  "trx_in_block": 4,
  "virtual_op": 0
}
steemdelegated 5.251 SP to @truantlife
2020/12/11 17:40:21
delegateetruantlife
delegatorsteem
vesting shares8534.248286 VESTS
Transaction InfoBlock #49362893/Trx 84b6bcf8122dbc6c986106354909caa0ac4b4b4c
View Raw JSON Data
{
  "block": 49362893,
  "op": [
    "delegate_vesting_shares",
    {
      "delegatee": "truantlife",
      "delegator": "steem",
      "vesting_shares": "8534.248286 VESTS"
    }
  ],
  "op_in_trx": 0,
  "timestamp": "2020-12-11T17:40:21",
  "trx_id": "84b6bcf8122dbc6c986106354909caa0ac4b4b4c",
  "trx_in_block": 5,
  "virtual_op": 0
}
steemdelegated 1.177 SP to @truantlife
2020/12/06 11:15:39
delegateetruantlife
delegatorsteem
vesting shares1912.543513 VESTS
Transaction InfoBlock #49214410/Trx 9f032ef4f652be6bd656fafe5f097660bc66e506
View Raw JSON Data
{
  "block": 49214410,
  "op": [
    "delegate_vesting_shares",
    {
      "delegatee": "truantlife",
      "delegator": "steem",
      "vesting_shares": "1912.543513 VESTS"
    }
  ],
  "op_in_trx": 0,
  "timestamp": "2020-12-06T11:15:39",
  "trx_id": "9f032ef4f652be6bd656fafe5f097660bc66e506",
  "trx_in_block": 9,
  "virtual_op": 0
}
steemdelegated 5.255 SP to @truantlife
2020/12/05 21:18:12
delegateetruantlife
delegatorsteem
vesting shares8540.456140 VESTS
Transaction InfoBlock #49197977/Trx 795493fde9d78cabd89a773636bae89df1461e4a
View Raw JSON Data
{
  "block": 49197977,
  "op": [
    "delegate_vesting_shares",
    {
      "delegatee": "truantlife",
      "delegator": "steem",
      "vesting_shares": "8540.456140 VESTS"
    }
  ],
  "op_in_trx": 0,
  "timestamp": "2020-12-05T21:18:12",
  "trx_id": "795493fde9d78cabd89a773636bae89df1461e4a",
  "trx_in_block": 1,
  "virtual_op": 0
}
steemdelegated 1.181 SP to @truantlife
2020/11/03 05:11:54
delegateetruantlife
delegatorsteem
vesting shares1920.017158 VESTS
Transaction InfoBlock #48273766/Trx b2e2ca0099191a3922d73ee4773517ff6a53f5f2
View Raw JSON Data
{
  "block": 48273766,
  "op": [
    "delegate_vesting_shares",
    {
      "delegatee": "truantlife",
      "delegator": "steem",
      "vesting_shares": "1920.017158 VESTS"
    }
  ],
  "op_in_trx": 0,
  "timestamp": "2020-11-03T05:11:54",
  "trx_id": "b2e2ca0099191a3922d73ee4773517ff6a53f5f2",
  "trx_in_block": 2,
  "virtual_op": 0
}
steemdelegated 5.380 SP to @truantlife
2020/05/09 12:19:57
delegateetruantlife
delegatorsteem
vesting shares8743.261499 VESTS
Transaction InfoBlock #43224759/Trx 097fbe2dd4c1d3dabd6e77ca768461cd21133307
View Raw JSON Data
{
  "block": 43224759,
  "op": [
    "delegate_vesting_shares",
    {
      "delegatee": "truantlife",
      "delegator": "steem",
      "vesting_shares": "8743.261499 VESTS"
    }
  ],
  "op_in_trx": 0,
  "timestamp": "2020-05-09T12:19:57",
  "trx_id": "097fbe2dd4c1d3dabd6e77ca768461cd21133307",
  "trx_in_block": 4,
  "virtual_op": 0
}
steemdelegated 1.202 SP to @truantlife
2020/05/08 16:55:09
delegateetruantlife
delegatorsteem
vesting shares1953.311140 VESTS
Transaction InfoBlock #43202014/Trx 8864277780c69f088c01017d070a5d7b7f8f8c06
View Raw JSON Data
{
  "block": 43202014,
  "op": [
    "delegate_vesting_shares",
    {
      "delegatee": "truantlife",
      "delegator": "steem",
      "vesting_shares": "1953.311140 VESTS"
    }
  ],
  "op_in_trx": 0,
  "timestamp": "2020-05-08T16:55:09",
  "trx_id": "8864277780c69f088c01017d070a5d7b7f8f8c06",
  "trx_in_block": 5,
  "virtual_op": 0
}
steemdelegated 5.387 SP to @truantlife
2020/04/16 04:04:09
delegateetruantlife
delegatorsteem
vesting shares8756.148947 VESTS
Transaction InfoBlock #42570053/Trx 84fa28325f7a8524e2930b7fc5859c6fb770d40d
View Raw JSON Data
{
  "block": 42570053,
  "op": [
    "delegate_vesting_shares",
    {
      "delegatee": "truantlife",
      "delegator": "steem",
      "vesting_shares": "8756.148947 VESTS"
    }
  ],
  "op_in_trx": 0,
  "timestamp": "2020-04-16T04:04:09",
  "trx_id": "84fa28325f7a8524e2930b7fc5859c6fb770d40d",
  "trx_in_block": 9,
  "virtual_op": 0
}
2020/02/05 10:45:57
authorsteemitboard
bodyCongratulations @truantlife! You received a personal award! <table><tr><td>https://steemitimages.com/70x70/http://steemitboard.com/@truantlife/birthday2.png</td><td>Happy Birthday! - You are on the Steem blockchain for 2 years!</td></tr></table> <sub>_You can view [your badges on your Steem Board](https://steemitboard.com/@truantlife) and compare to others on the [Steem Ranking](https://steemitboard.com/ranking/index.php?name=truantlife)_</sub> **Do not miss the last post from @steemitboard:** <table><tr><td><a href="https://steemit.com/steemitboard/@steemitboard/steemitboard-ranking-update-a-better-rich-list-comparator"><img src="https://steemitimages.com/64x128/https://cdn.steemitimages.com/DQmfRVpHQhLDhnjDtqck8GPv9NPvNKPfMsDaAFDE1D9Er2Z/header_ranking.png"></a></td><td><a href="https://steemit.com/steemitboard/@steemitboard/steemitboard-ranking-update-a-better-rich-list-comparator">SteemitBoard Ranking update - A better rich list comparator</a></td></tr></table> ###### [Vote for @Steemitboard as a witness](https://v2.steemconnect.com/sign/account-witness-vote?witness=steemitboard&approve=1) to get one more award and increased upvotes!
json metadata{"image":["https://steemitboard.com/img/notify.png"]}
parent authortruantlife
parent permlinkblockchain-101
permlinksteemitboard-notify-truantlife-20200205t104556000z
title
Transaction InfoBlock #40551224/Trx 5a7f7a54f2f8b84c651481c34ec315e2a682171a
View Raw JSON Data
{
  "block": 40551224,
  "op": [
    "comment",
    {
      "author": "steemitboard",
      "body": "Congratulations @truantlife! You received a personal award!\n\n<table><tr><td>https://steemitimages.com/70x70/http://steemitboard.com/@truantlife/birthday2.png</td><td>Happy Birthday! - You are on the Steem blockchain for 2 years!</td></tr></table>\n\n<sub>_You can view [your badges on your Steem Board](https://steemitboard.com/@truantlife) and compare to others on the [Steem Ranking](https://steemitboard.com/ranking/index.php?name=truantlife)_</sub>\n\n\n**Do not miss the last post from @steemitboard:**\n<table><tr><td><a href=\"https://steemit.com/steemitboard/@steemitboard/steemitboard-ranking-update-a-better-rich-list-comparator\"><img src=\"https://steemitimages.com/64x128/https://cdn.steemitimages.com/DQmfRVpHQhLDhnjDtqck8GPv9NPvNKPfMsDaAFDE1D9Er2Z/header_ranking.png\"></a></td><td><a href=\"https://steemit.com/steemitboard/@steemitboard/steemitboard-ranking-update-a-better-rich-list-comparator\">SteemitBoard Ranking update - A better rich list comparator</a></td></tr></table>\n\n###### [Vote for @Steemitboard as a witness](https://v2.steemconnect.com/sign/account-witness-vote?witness=steemitboard&approve=1) to get one more award and increased upvotes!",
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steemdelegated 5.508 SP to @truantlife
2019/05/12 21:12:00
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2019/02/05 10:29:45
authorsteemitboard
bodyCongratulations @truantlife! You received a personal award! <table><tr><td>https://steemitimages.com/70x70/http://steemitboard.com/@truantlife/birthday1.png</td><td>Happy Birthday! - You are on the Steem blockchain for 1 year!</td></tr></table> <sub>_[Click here to view your Board](https://steemitboard.com/@truantlife)_</sub> > Support [SteemitBoard's project](https://steemit.com/@steemitboard)! **[Vote for its witness](https://v2.steemconnect.com/sign/account-witness-vote?witness=steemitboard&approve=1)** and **get one more award**!
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2018/05/17 03:27:39
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2018/02/13 15:38:12
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2018/02/12 16:25:30
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2018/02/11 20:26:42
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2018/02/09 09:53:45
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2018/02/08 23:45:57
authorobsesija
bodyGreat Pieces of information here, and very nicely explained. Thanks for that.
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2018/02/08 23:45:36
authorobsesija
bodyGreat Informations here, and very nice explained. Thanks for that.
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2018/02/08 23:44:57
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2018/02/08 23:26:24
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2018/02/08 16:15:09
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2018/02/07 20:05:48
authorsteemingmark
bodygreat detail man!
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uccdocupvoted (100.00%) @truantlife / blockchain-101
2018/02/07 18:42:48
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2018/02/07 13:04:09
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2018/02/07 03:00:24
authorstwbll
bodyGreat information! The best way to learn something is to teach. Very informative, keep up the good work!
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stwbllupvoted (100.00%) @truantlife / blockchain-101
2018/02/07 02:59:12
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truantlifepublished a new post: blockchain-101
2018/02/05 23:05:48
authortruantlife
body**Blockchain/Cryptocurrency 101** *There has been quite a bit of interest in cryptocurrency and blockchain technology recently. The technical aspect of how this new technology functions is rarely explained in a rudimentary fashion. This is my attempt to explain the technology for laypersons so they might have a better understanding of how this technology will impact our lives in the future. Below I give a brief explanation on what blockchains are, what they are capable of, how they function, and how to trade cryptocurrencies.* **Blockchain** ![Blockchain-as-chain.png](https://steemitimages.com/DQmRG8aMJxDLWUgm7pxVXPvEvHZ5ehigQFMRSr8LNTjrAsL/Blockchain-as-chain.png) Cryptocurrency, Bitcoin, Ether are all blockchains. Blockchains are basically a spreadsheet (LEDGER) that is duplicated multiple times across a network and updated regularly simultaneously. There is no centralized version of this ledger. It is hosted simultaneously by thousands/millions of computers. These ledgers will update on their own, Bitcoin as an example automatically checks itself every 10 minutes. Each of these 10-minute increment of transactions (in bitcoins case transactions would be sending or receiving bitcoins from one person to another for goods or services) are called BLOCKS. For these blocks to be confirmed, accepted, and updated to the ledger nodes are required. **Nodes (Mining/Forging)** ![blockchain.png](https://steemitimages.com/DQmWc7SkCF1p7inmCh65oUvLHMsB2CubcF92KDsiadUwA8w/blockchain.png) A node is a computer running the blockchain software on the network. The blockchain software will automatically download the entire ledger of all transactions since its inception. At regular intervals, the software will take the transactions of a block (data on the ledger) and convert them into a mathematical puzzle to be solved by randomly chosen nodes (MINING). Mining requires powerful processors (typically GPUs) and substantial quantities of energy to receive mined tokens profitably. When a specific number of nodes solve the puzzle with the same answer they are basically confirming that the data on the block is accurate as multiple independent nodes found the same answer. When confirmed, the block gets added to the previous blocks making a chain of blocks aka a blockchain. As an incentive to run your computer as a node you are rewarded with TOKENS. If a single person or group of people wanted to manipulate the ledger, the amount of machinery and electricity used to achieve a majority of miners thus allowing you to manipulate the ledger is so exponentially expensive that it serves no reasonable purpose. This is an example of a Proof of Work Blockchain System (computer solves puzzle and rewarded with tokens) **Tokens**![tokens.jpeg](https://steemitimages.com/DQmUo22wj3TSbPULzPhBGpZuAk7BD2MrDd3cmgZk3yokcRC/tokens.jpeg) Tokens are part of the core of the blockchain. They are an incentive to validate transactions and create blocks. They gain intrinsic value based on the blockchain they are associated with. Some blockchains grant token holder’s different abilities. With Bitcoin, tokens are needed to pay for transaction fees. Others allow voting rights on how certain blockchain functions are managed. There is a limited amount of Bitcoin that will ever be released to nodes (21 million expected to be all be released by 2033) which also keep inflation from being a problem. Blockchains can create their platform with whatever number of tokens they would like and release them or create means to mine them as they see fit. Essentially, as with any other fiat money (currency that a government has declared to be legal tender NOT backed by a physical commodity), as adoption and trust increases the value of the token will increase. If most people accept Bitcoin for services and stores accept Bitcoin for goods than it is as good as the next currency. **Wallets** ![wallet.png](https://steemitimages.com/DQmc498N8RkUVCPXPiAEqKGVHpFSHvsys68e1MoJHo2SZPP/wallet.png) Whether you mine for tokens, are paid in tokens for goods or services or purchase tokens from a person or currency exchange you need a place to store them securely and a way to send and receive them. Cryptocurrency Wallets don’t store currency, they hold your public and private keys that interface with the blockchain so you can access your balance, send money and manage your funds. The public key allows others to send money to the public key only. A wallet that is "offline" (see Hardware or Paper below) cannot access funds or send money unless it is accessed with another form of wallet, either desktop, online, or mobile. 1) Desktop Wallet - Installed on your computer and are only accessible from that SINGLE computer. Very secure but if someone hacks your computer you are exposed. 2) Online Wallet - Run remotely (cloud based) and are far more convenient to access but make them more vulnerable as they are controlled by a third party and are also vulnerable to hacking attacks. Exchange wallets are online wallets but you are not in control of the private key. View it as a wallet that is lended to you so you can trade. The wallet is technically not yours. 3) Mobile - Ran on an app and are useful as they can be used anywhere including retail stores 4) Hardware - Private keys are stored on a tangible device like a USB drive. They can make transactions online but they are stored offline. Compatible with web interfaces and support many but not all currencies. To use, plug into a computer, enter a pin, send currency and confirm. Safest form of storage. 5) Paper - Basically a physical printout of your private and public keys. It is not stored online anywhere and the only way transactions can happen is if you transfer money with the help of an Online wallet. *Example of a Public Key* = 1A684DbsHQKPVCWgaUsYdF4uQGwTiA9BFT *Example of a Private Key* = E9873D79C6D87DC0FB6A5778633389F4453213303DA61F20BD67FC233AA33262 Most wallets provide a Recovery Mnemonic Passcode that is a series of words (typically 12 to 24 words) in a specific order. If you lose your login information for your wallet you can supply the mnemonic passcode and retrieve your lost login information. If you lose your login information and your mnemonic passcode your wallet will be inaccessible and your tokens are lost to you. The above basically describes a first generation Blockchain Cryptocurrency such as Bitcoin. It is used basically as currency with no centralized entity regulating the release of additional currency and keeping the ledger of where the money is going secure and extremely safe from manipulation. **Second Generation Blockchain** ![smart-contracts.jpg](https://steemitimages.com/DQmf6Hi3oGcpoSsCeG8U322nkWwP8aAXr4GRExL3w8hBi1M/smart-contracts.jpg) The second generation blockchains sprung out of this environment with something more valuable. Utilizing the blockchain system to allow applications to be ran on top of a decentralized secure system. Instead of just recording transactions, contracts could be transmitted the same way. More complex transactions (SMART CONTRACTS) allow for things such as: - Funds to be spent only when a required percentage of people agree - Manage agreements between users (such as insurance) - Provide utility to other contracts - Store information about an application such as domain registration information or membership records This basically can allow applications to be ran on top of the blockchain system. This can cut out the middleman for many real-world applications (mortgages, banking, communications, security confirmations etc.) **Proof of Work/Proof of Stake** ![PoWPoS-img.jpg](https://steemitimages.com/DQmbvUm12v5UfFNtzxD1XMo6zRz4SrYMh2dH45UjCqUjH83/PoWPoS-img.jpg) As I mentioned earlier, Proof of Work (PoW) requires nodes to solve a mathematical puzzle which is rewarded with tokens. Proof of Stake (PoS) is different, the tokens with proof of stake systems are pre-mined meaning they are all created when the blockchain system is created. Blocks are not verified by the typical method. The block validator uses the blockchain software to stake their tokens and are chosen based on specific factors depending on how many tokens the person holds and for how long. Depending on how many tokens they hold will restrict the quantity of blocks they can validate. If they own more they can validate more often but all validators will be chosen randomly keeping the rewards distributed (unlike PoW which typically reward the first completed.) The blockchain still requires a mathematical puzzle to be solved but it is much easier than PoW requiring far less time and energy. If the blockchain has premined all of their tokens then new tokens cannot be mined for rewards in PoS. The reward for staking your tokens to be a validator is a portion of the transaction fee that is charged as part of normal transactions on the blockchain. That is why PoS miners are called forgers. If manipulation is attempted than their stake can be taken from their wallet adding more motivation to prevent data manipulation. **Forks** ![fork.jpg](https://steemitimages.com/DQmfVvQzRR5wVcXn4DmjwXXkazJY54rB79SNXkq4AY1Cb3v/fork.jpg) Some cryptocurrencies may need to update or upgrade the coding of their blockchain software. When this happens usually a fork occurs. This basically means the cryptocurrency splits into two separate cryptocurrencies. Because the nature of blockchain technology, they are decentralized and autonomous so the older version cannot be deleted or removed. If people choose to continue using the old version they can. For mining/forging purposes the nodes will need to choose which they will mine/forge and download the blockchain software on their computer to proceed. When the fork occurs, anyone holding tokens in the original currency will be given the same number of tokens in the forked currency. (When Bitcoin forked to Bitcoin Cash, anyone holding x amount of Bitcoin would receive a new wallet for Bitcoin Cash also containing x amount of Bitcoin Cash.) This is called a Hard Fork and all previous transactions are made invalid. There are also Soft Forks, in this case it is backwards compatible and all previous transactions are valid. This can result in two currencies but in most cases, it doesn’t as it is usually accepted by most miners/forgers because it is backwards compatible. **Exchanges** ![bitcoin-exchange.jpg](https://steemitimages.com/DQmcFJPPBPpN4YNnYNXYf2xyHNen8XbgoPdmz7MNovVRYoT/bitcoin-exchange.jpg) Online currency exchanges allow you to buy, sell or exchange fiat money (USD, EUR, etc.) with digital currencies or in most cases digital currencies for other digital currencies. There are a large variety of different exchanges that are operated in multiple countries but there are around a dozen that the majority of cryptocurrency trading volume are present on. Not all cryptocurrencies will be listed on all exchanges, some have specific prerequisites to be listed on their exchange and there may be fees associated as well. Once your account is set up you will have a list of all available cryptocurrencies to trade. Each currency will have an associated online wallet with the public key address allowing you to send that specific currency to that wallet. (Many exchanges are having delayed or canceled identity verification, currency transfers and lack sufficient customer support due to the influx of new traders) Examples of top exchanges: 1) Coinbase (trades fiat) 2) GDAX (trades fiat) 3) Gemini (trades fiat) 4) Changelly (trades fiat) 5) Bittrex 6) Binance 7) HitBTC 8) EtherDelta 9) Bitfinex 10) Kraken 11) Bithumb 12) Bitstamp 13) Poloniex 14) OKEx 15) Robinhood (trades fiat/cryptocurrency to be traded in February) **Sending/Receiving Tokens** ![sending.png](https://steemitimages.com/DQmTqLNr549G9VvEBnPDSVYgmHfLqKBeDFnsZjx4sLfNKHn/sending.png) All wallets can send digital currency to other wallets. The function is relatively easy, make sure the currency you are sending is going to the appropriate wallet for that currency. Ethereum tokens cannot be sent to a Bitcoin wallet for example. (The tokens aren’t actually moving location; the list of transactions/ownership is what is stored in the wallet). Triple check the wallet public key you are sending the tokens to. If you type the wrong address the tokens will be lost in nearly all incidents. Some mobile wallets allow you to scan a QR code that will automatically enter the public key rather than copying/pasting or typing out the public key. **Taxes** ![taxes-1.jpg](https://steemitimages.com/DQmZS2MvE7jjrLNwutKffhU4DoWf3PrVKZckG2gX3gNDFJ5/taxes-1.jpg) As of January 1, 2018, it appears that taxing on digital currency has changed. Every trade between any digital currencies (Bitcoin to Ether, Ether to Litecoin etc.) will be a taxable transaction. If you hold the currency for longer than one year than you will pay capital gain tax when it is traded or sold (15%-20%) and if you sell or trade in less than a year you will have to add the profit to your taxable income to adjust your tax bracket. **Altcoins** ![altcoin.jpg](https://steemitimages.com/DQmWstcgmJFSYKgbkEJcszgK4ka7m9c5X8UGUZySaAH7V1x/altcoin.jpg) Altcoins are basically any coin that is not Bitcoin. Most cryptocurrencies do not have a native blockchain (their own independent dedicated blockchain). Bitcoin, Ether, Ripple, Waves, NXT, Cardano all have their own native blockchain. Many other cryptocurrencies run on other cryptocurrency’s blockchains. Litecoin is one of many that runs on Bitcoins blockchain, a significant amount run on the Ethereum blockchain. These currencies act as smart contracts running on the adopted blockchain. **DApps (Decentralized Applications)** ![dapps.png](https://steemitimages.com/DQmY89KnnafQtE1jyk8dt2mxNKGkKiCDn48o5LSRhTNgh11/dapps.png) For a blockchain application to be considered a DApp it must be 1) Open source, code available to all 2) Decentralized, uses blockchain cryptographic tech 3) Incentive, must have tokens to fuel itself 4) Algorithm/Protocol, generates tokens and has a built-in consensus mechanism (mining/forging.) There are 3 types of DApps, each basically piggybacks off the platform of the previous Type 1 – Have their own blockchain (like bitcoin) Type 2 – Use the blockchain of Type 1 DApps Type 3 – Use the protocol of Type 2 DApps **ICO (Initial Coin Offering)** ![ico.jpg](https://steemitimages.com/DQmeUAQ224MGtcknTjLsEonteScqXXpYeRpqxJoNhYkdKZB/ico.jpg) Much like an IPO (Initial Public Offering) that offers stock in a private company to the public, an ICO raises money for new Cryptocurrency ventures. Typically, a minimum investment is required in the form of a cryptocurrency such as Bitcoin or Ether and the investor is given tokens of the cryptocurrency at a reduced cost. Since ICO’s are so new, government agencies have not begun regulating these ventures making them extremely risky as anyone with a competent coder can create and market a cryptocurrency that can be used to swindle investors who aren’t cautious. The US government no longer allows its citizens to participate in ICO’s and if you are using a computer with an IP address located in the United States, ICO’s websites will not allow you to invest. **Research** ![research_desk.jpg](https://steemitimages.com/DQmVbdoCfWtig1Uray8rRHwumpGZZ1v6D8JHcoumHvaa4Bd/research_desk.jpg) 1) Whitepapers – Each cryptocurrency will have their own dedicated websites and most will have a whitepaper that has a description of what their cryptocurrency is designed to do. 2) Roadmaps – Also on each cryptocurrency’s website, they tend to have a roadmap or timeline as to when they are planning to complete certain milestones be it added features to the blockchain or wallet or any other important events. 3) Coinmarketcap.com – List of every available cryptocurrency, the exchanges they trade on, market cap, trade volume, available tokens, newly created tokens etc. 4) Livecoinwatch.com - Very similar to coinmarketcap.com 5) Reddit.com (cryptocurrency subreddit) – Subreddits focused on cryptocurrency as well as specific subreddits focused on individual cryptocurrencies. Be cautious as many people on these sites are uninformed and/or are trying to manipulate the market by fooling others to buy or sell based on fraudulent information. 6) Bitcointalk.org – Forums specific to individual cryptocurrencies. There is a lot of self-marketing (bounties) on this site. Take what they say with a grain of salt 7) Twitter/Facebook (Social Media) – Many times news from team members or the cryptocurrency’s social media page will break news before it is listed on any of the above-mentioned outlets. Find out who is working for the cryptocurrency you are interested in and start following the team’s social media. Don’t forget to look at their LinkedIn accounts if available, previous employment and behavioral history to confirm they are competent. 8) GitHub - Code from projects can be uploaded here and reviewed for issues and revisions. **Tools** ![tools.jpg](https://steemitimages.com/DQmVG3HkgKscvo6Ea9PYPcMed4osCHeYjv2banfsG6weXXF/tools.jpg) 1) Delta - A cryptocurrency portfolio tracking app for your phone. Manually enter in the trades you've made and has real time prices to inform you where your profits/losses are at. Free app, Pro version allows you to enter multiple portfolios 2) Google Authenticator/Duo Mobile/Authy - Two step verification apps that add a layer of security to your exchanges and other sites. Most use Google Authenticator, they can be utilized in your exchanges settings. Always backup the initial 2 step passcode in case you lose your phone or buy a new phone. If you enjoyed my article and would like to contribute, all donations are appreciated. BTC (Bitcoin) = 3MZ6PcEG7vNfTo4AqefzPVzqUKFNVZUkmh ![btc.png](https://steemitimages.com/DQmZ9soB9rbQoP7GZGrtWz94br1BdmdPvH2WBqr7aMJYf4Q/btc.png)![btcQR.png](https://steemitimages.com/DQmdkPHZvdYvhwvZzCcgePJSrJdpCPYmpanZ6xkRrSEYcaY/btcQR.png) ETH (Ether) = 0xB4604a8a19d5cE67B1d53651e818fd173eBd4b31 ![eth.png](https://steemitimages.com/DQmVioU45gJiVkZaR5wBbPYHiFT2rRaTorKHotFyXagUTkf/eth.png)![ethQR.png](https://steemitimages.com/DQmRCqP7o6ZF3cpp2XossEfsxgBSajyUoG1dGNYTUPEQKWH/ethQR.png) LTC (Litecoin) = MT7Yvm5fCJcxZuxsDzbrvQcFUNak2Ci5LY ![ltc.png](https://steemitimages.com/DQmUq75tZ24ew2v1RzSrGmKoKkrDKHVDL93WBhyNcqV5LNz/ltc.png)![ltcQR.jpg](https://steemitimages.com/DQmT7eKchSZ4ZPAgwQusCMTSHEg6MgQaosnL7d2aSb8vgMC/ltcQR.jpg) XLM (Stellar Lumen)= GCF6SMXNZXLO26TWL5QH455PSUUCJ2IJL5BN4P53OE7PURBUEBJLH3I5 ![stellar.png](https://steemitimages.com/DQmYtvWTVCLjtscyMB38GfSn6QZqdXukjg8tDswijFw28z5/stellar.png)![xlmQR.jpg](https://steemitimages.com/DQmcai8mLp6pAeAR9gLsMJCV7osGUEkNpUzhQSBhBoqKwi6/xlmQR.jpg)
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parent author
parent permlinkcryptocurrency
permlinkblockchain-101
titleBlockchain 101
Transaction InfoBlock #19616257/Trx 4235df8633b90c326d286e4a4452171c8644731f
View Raw JSON Data
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      "author": "truantlife",
      "body": "**Blockchain/Cryptocurrency 101**\n\n*There has been quite a bit of interest in cryptocurrency and blockchain technology recently. The technical aspect of how this new technology functions is rarely explained in a rudimentary fashion. This is my attempt to explain the technology for laypersons so they might have a better understanding of how this technology will impact our lives in the future. Below I give a brief explanation on what blockchains are, what they are capable of, how they function, and how to trade cryptocurrencies.*\n \n**Blockchain**\n![Blockchain-as-chain.png](https://steemitimages.com/DQmRG8aMJxDLWUgm7pxVXPvEvHZ5ehigQFMRSr8LNTjrAsL/Blockchain-as-chain.png)\nCryptocurrency, Bitcoin, Ether are all blockchains. Blockchains are basically a spreadsheet (LEDGER) that is duplicated multiple times across a network and updated regularly simultaneously. There is no centralized version of this ledger. It is hosted simultaneously by thousands/millions of computers. These ledgers will update on their own, Bitcoin as an example automatically checks itself every 10 minutes. Each of these 10-minute increment of transactions (in bitcoins case transactions would be sending or receiving bitcoins from one person to another for goods or services) are called BLOCKS. For these blocks to be confirmed, accepted, and updated to the ledger nodes are required.\n\n**Nodes (Mining/Forging)**\n![blockchain.png](https://steemitimages.com/DQmWc7SkCF1p7inmCh65oUvLHMsB2CubcF92KDsiadUwA8w/blockchain.png)\nA node is a computer running the blockchain software on the network. The blockchain software will automatically download the entire ledger of all transactions since its inception. At regular intervals, the software will take the transactions of a block (data on the ledger) and convert them into a mathematical puzzle to be solved by randomly chosen nodes (MINING). Mining requires powerful processors (typically GPUs) and substantial quantities of energy to receive mined tokens profitably. When a specific number of nodes solve the puzzle with the same answer they are basically confirming that the data on the block is accurate as multiple independent nodes found the same answer. When confirmed, the block gets added to the previous blocks making a chain of blocks aka a blockchain. As an incentive to run your computer as a node you are rewarded with TOKENS. If a single person or group of people wanted to manipulate the ledger, the amount of machinery and electricity used to achieve a majority of miners thus allowing you to manipulate the ledger is so exponentially expensive that it serves no reasonable purpose. This is an example of a Proof of Work Blockchain System (computer solves puzzle and rewarded with tokens)\n\n**Tokens**![tokens.jpeg](https://steemitimages.com/DQmUo22wj3TSbPULzPhBGpZuAk7BD2MrDd3cmgZk3yokcRC/tokens.jpeg)\nTokens are part of the core of the blockchain. They are an incentive to validate transactions and create blocks. They gain intrinsic value based on the blockchain they are associated with. Some blockchains grant token holder’s different abilities. With Bitcoin, tokens are needed to pay for transaction fees. Others allow voting rights on how certain blockchain functions are managed. There is a limited amount of Bitcoin that will ever be released to nodes (21 million expected to be all be released by 2033) which also keep inflation from being a problem. Blockchains can create their platform with whatever number of tokens they would like and release them or create means to mine them as they see fit. Essentially, as with any other fiat money (currency that a government has declared to be legal tender NOT backed by a physical commodity), as adoption and trust increases the value of the token will increase. If most people accept Bitcoin for services and stores accept Bitcoin for goods than it is as good as the next currency.\n\n**Wallets**\n![wallet.png](https://steemitimages.com/DQmc498N8RkUVCPXPiAEqKGVHpFSHvsys68e1MoJHo2SZPP/wallet.png)\nWhether you mine for tokens, are paid in tokens for goods or services or purchase tokens from a person or currency exchange you need a place to store them securely and a way to send and receive them. Cryptocurrency Wallets don’t store currency, they hold your public and private keys that interface with the blockchain so you can access your balance, send money and manage your funds. The public key allows others to send money to the public key only. A wallet that is \"offline\" (see Hardware or Paper below) cannot access funds or send money unless it is accessed with another form of wallet, either desktop, online, or mobile.\n\n1) Desktop Wallet - Installed on your computer and are only accessible from that SINGLE computer. Very secure but if someone hacks your computer you are exposed. \n2) Online Wallet - Run remotely (cloud based) and are far more convenient to access but make them more vulnerable as they are controlled by a third party and are also vulnerable to hacking attacks. Exchange wallets are online wallets but you are not in control of the private key. View it as a wallet that is lended to you so you can trade. The wallet is technically not yours. \n3) Mobile - Ran on an app and are useful as they can be used anywhere including retail stores \n4) Hardware - Private keys are stored on a tangible device like a USB drive. They can make transactions online but they are stored offline. Compatible with web interfaces and support many but not all currencies. To use, plug into a computer, enter a pin, send currency and confirm. Safest form of storage. \n5) Paper - Basically a physical printout of your private and public keys. It is not stored online anywhere and the only way transactions can happen is if you transfer money with the help of an Online wallet.\n\n*Example of a Public Key* = 1A684DbsHQKPVCWgaUsYdF4uQGwTiA9BFT \n*Example of a Private Key* = E9873D79C6D87DC0FB6A5778633389F4453213303DA61F20BD67FC233AA33262\n\nMost wallets provide a Recovery Mnemonic Passcode that is a series of words (typically 12 to 24 words) in a specific order. If you lose your login information for your wallet you can supply the mnemonic passcode and retrieve your lost login information. If you lose your login information and your mnemonic passcode your wallet will be inaccessible and your tokens are lost to you. The above basically describes a first generation Blockchain Cryptocurrency such as Bitcoin. It is used basically as currency with no centralized entity regulating the release of additional currency and keeping the ledger of where the money is going secure and extremely safe from manipulation.\n\n**Second Generation Blockchain**\n![smart-contracts.jpg](https://steemitimages.com/DQmf6Hi3oGcpoSsCeG8U322nkWwP8aAXr4GRExL3w8hBi1M/smart-contracts.jpg)\nThe second generation blockchains sprung out of this environment with something more valuable. Utilizing the blockchain system to allow applications to be ran on top of a decentralized secure system. Instead of just recording transactions, contracts could be transmitted the same way. More complex transactions (SMART CONTRACTS) allow for things such as: \n- Funds to be spent only when a required percentage of people agree \n- Manage agreements between users (such as insurance)\n- Provide utility to other contracts \n- Store information about an application such as domain registration information or membership records \n\nThis basically can allow applications to be ran on top of the blockchain system. This can cut out the middleman for many real-world applications (mortgages, banking, communications, security confirmations etc.)\n\n**Proof of Work/Proof of Stake**\n![PoWPoS-img.jpg](https://steemitimages.com/DQmbvUm12v5UfFNtzxD1XMo6zRz4SrYMh2dH45UjCqUjH83/PoWPoS-img.jpg)\nAs I mentioned earlier, Proof of Work (PoW) requires nodes to solve a mathematical puzzle which is rewarded with tokens. Proof of Stake (PoS) is different, the tokens with proof of stake systems are pre-mined meaning they are all created when the blockchain system is created. Blocks are not verified by the typical method. The block validator uses the blockchain software to stake their tokens and are chosen based on specific factors depending on how many tokens the person holds and for how long. Depending on how many tokens they hold will restrict the quantity of blocks they can validate. If they own more they can validate more often but all validators will be chosen randomly keeping the rewards distributed (unlike PoW which typically reward the first completed.) The blockchain still requires a mathematical puzzle to be solved but it is much easier than PoW requiring far less time and energy. If the blockchain has premined all of their tokens then new tokens cannot be mined for rewards in PoS. The reward for staking your tokens to be a validator is a portion of the transaction fee that is charged as part of normal transactions on the blockchain. That is why PoS miners are called forgers. If manipulation is attempted than their stake can be taken from their wallet adding more motivation to prevent data manipulation.\n\n**Forks**\n![fork.jpg](https://steemitimages.com/DQmfVvQzRR5wVcXn4DmjwXXkazJY54rB79SNXkq4AY1Cb3v/fork.jpg)\nSome cryptocurrencies may need to update or upgrade the coding of their blockchain software. When this happens usually a fork occurs. This basically means the cryptocurrency splits into two separate cryptocurrencies. Because the nature of blockchain technology, they are decentralized and autonomous so the older version cannot be deleted or removed. If people choose to continue using the old version they can. For mining/forging purposes the nodes will need to choose which they will mine/forge and download the blockchain software on their computer to proceed. When the fork occurs, anyone holding tokens in the original currency will be given the same number of tokens in the forked currency. (When Bitcoin forked to Bitcoin Cash, anyone holding x amount of Bitcoin would receive a new wallet for Bitcoin Cash also containing x amount of Bitcoin Cash.) This is called a Hard Fork and all previous transactions are made invalid. There are also Soft Forks, in this case it is backwards compatible and all previous transactions are valid. This can result in two currencies but in most cases, it doesn’t as it is usually accepted by most miners/forgers because it is backwards compatible.\n\n**Exchanges**\n![bitcoin-exchange.jpg](https://steemitimages.com/DQmcFJPPBPpN4YNnYNXYf2xyHNen8XbgoPdmz7MNovVRYoT/bitcoin-exchange.jpg)\nOnline currency exchanges allow you to buy, sell or exchange fiat money (USD, EUR, etc.) with digital currencies or in most cases digital currencies for other digital currencies. There are a large variety of different exchanges that are operated in multiple countries but there are around a dozen that the majority of cryptocurrency trading volume are present on. Not all cryptocurrencies will be listed on all exchanges, some have specific prerequisites to be listed on their exchange and there may be fees associated as well. Once your account is set up you will have a list of all available cryptocurrencies to trade. Each currency will have an associated online wallet with the public key address allowing you to send that specific currency to that wallet. (Many exchanges are having delayed or canceled identity verification, currency transfers and lack sufficient customer support due to the influx of new traders) Examples of top exchanges: \n1) Coinbase (trades fiat) \n2) GDAX (trades fiat) \n3) Gemini (trades fiat) \n4) Changelly (trades fiat) \n5) Bittrex \n6) Binance \n7) HitBTC \n8) EtherDelta \n9) Bitfinex \n10) Kraken \n11) Bithumb \n12) Bitstamp \n13) Poloniex \n14) OKEx\n15) Robinhood (trades fiat/cryptocurrency to be traded in February)\n\n**Sending/Receiving Tokens**\n![sending.png](https://steemitimages.com/DQmTqLNr549G9VvEBnPDSVYgmHfLqKBeDFnsZjx4sLfNKHn/sending.png)\nAll wallets can send digital currency to other wallets. The function is relatively easy, make sure the currency you are sending is going to the appropriate wallet for that currency. Ethereum tokens cannot be sent to a Bitcoin wallet for example. (The tokens aren’t actually moving location; the list of transactions/ownership is what is stored in the wallet). Triple check the wallet public key you are sending the tokens to. If you type the wrong address the tokens will be lost in nearly all incidents. Some mobile wallets allow you to scan a QR code that will automatically enter the public key rather than copying/pasting or typing out the public key.\n\n**Taxes**\n![taxes-1.jpg](https://steemitimages.com/DQmZS2MvE7jjrLNwutKffhU4DoWf3PrVKZckG2gX3gNDFJ5/taxes-1.jpg)\nAs of January 1, 2018, it appears that taxing on digital currency has changed. Every trade between any digital currencies (Bitcoin to Ether, Ether to Litecoin etc.) will be a taxable transaction. If you hold the currency for longer than one year than you will pay capital gain tax when it is traded or sold (15%-20%) and if you sell or trade in less than a year you will have to add the profit to your taxable income to adjust your tax bracket.\n\n**Altcoins**\n![altcoin.jpg](https://steemitimages.com/DQmWstcgmJFSYKgbkEJcszgK4ka7m9c5X8UGUZySaAH7V1x/altcoin.jpg)\nAltcoins are basically any coin that is not Bitcoin. Most cryptocurrencies do not have a native blockchain (their own independent dedicated blockchain). Bitcoin, Ether, Ripple, Waves, NXT, Cardano all have their own native blockchain. Many other cryptocurrencies run on other cryptocurrency’s blockchains. Litecoin is one of many that runs on Bitcoins blockchain, a significant amount run on the Ethereum blockchain. These currencies act as smart contracts running on the adopted blockchain.\n\n**DApps (Decentralized Applications)**\n![dapps.png](https://steemitimages.com/DQmY89KnnafQtE1jyk8dt2mxNKGkKiCDn48o5LSRhTNgh11/dapps.png)\nFor a blockchain application to be considered a DApp it must be \n1) Open source, code available to all \n2) Decentralized, uses blockchain cryptographic tech \n3) Incentive, must have tokens to fuel itself \n4) Algorithm/Protocol, generates tokens and has a built-in consensus mechanism (mining/forging.)\n\nThere are 3 types of DApps, each basically piggybacks off the platform of the previous \nType 1 – Have their own blockchain (like bitcoin) \nType 2 – Use the blockchain of Type 1 DApps \nType 3 – Use the protocol of Type 2 DApps\n\n**ICO (Initial Coin Offering)**\n![ico.jpg](https://steemitimages.com/DQmeUAQ224MGtcknTjLsEonteScqXXpYeRpqxJoNhYkdKZB/ico.jpg)\nMuch like an IPO (Initial Public Offering) that offers stock in a private company to the public, an ICO raises money for new Cryptocurrency ventures. Typically, a minimum investment is required in the form of a cryptocurrency such as Bitcoin or Ether and the investor is given tokens of the cryptocurrency at a reduced cost. Since ICO’s are so new, government agencies have not begun regulating these ventures making them extremely risky as anyone with a competent coder can create and market a cryptocurrency that can be used to swindle investors who aren’t cautious. The US government no longer allows its citizens to participate in ICO’s and if you are using a computer with an IP address located in the United States, ICO’s websites will not allow you to invest.\n\n**Research**\n![research_desk.jpg](https://steemitimages.com/DQmVbdoCfWtig1Uray8rRHwumpGZZ1v6D8JHcoumHvaa4Bd/research_desk.jpg)\n1) Whitepapers – Each cryptocurrency will have their own dedicated websites and most will have a whitepaper that has a description of what their cryptocurrency is designed to do. \n2) Roadmaps – Also on each cryptocurrency’s website, they tend to have a roadmap or timeline as to when they are planning to complete certain milestones be it added features to the blockchain or wallet or any other important events. \n3) Coinmarketcap.com – List of every available cryptocurrency, the exchanges they trade on, market cap, trade volume, available tokens, newly created tokens etc. \n4) Livecoinwatch.com - Very similar to coinmarketcap.com\n5) Reddit.com (cryptocurrency subreddit) – Subreddits focused on cryptocurrency as well as specific subreddits focused on individual cryptocurrencies. Be cautious as many people on these sites are uninformed and/or are trying to manipulate the market by fooling others to buy or sell based on fraudulent information. \n6) Bitcointalk.org – Forums specific to individual cryptocurrencies. There is a lot of self-marketing (bounties) on this site. Take what they say with a grain of salt \n7) Twitter/Facebook (Social Media) – Many times news from team members or the cryptocurrency’s social media page will break news before it is listed on any of the above-mentioned outlets. Find out who is working for the cryptocurrency you are interested in and start following the team’s social media. Don’t forget to look at their LinkedIn accounts if available, previous employment and behavioral history to confirm they are competent. \n8) GitHub - Code from projects can be uploaded here and reviewed for issues and revisions.\n\n**Tools**\n![tools.jpg](https://steemitimages.com/DQmVG3HkgKscvo6Ea9PYPcMed4osCHeYjv2banfsG6weXXF/tools.jpg)\n1) Delta - A cryptocurrency portfolio tracking app for your phone. Manually enter in the trades you've made and has real time prices to inform you where your profits/losses are at. Free app, Pro version allows you to enter multiple portfolios\n\n2) Google Authenticator/Duo Mobile/Authy - Two step verification apps that add a layer of security to your exchanges and other sites. Most use Google Authenticator, they can be utilized in your exchanges settings. Always backup the initial 2 step passcode in case you lose your phone or buy a new phone.\n\n\nIf you enjoyed my article and would like to contribute, all donations are appreciated.\n\nBTC (Bitcoin) = 3MZ6PcEG7vNfTo4AqefzPVzqUKFNVZUkmh\n![btc.png](https://steemitimages.com/DQmZ9soB9rbQoP7GZGrtWz94br1BdmdPvH2WBqr7aMJYf4Q/btc.png)![btcQR.png](https://steemitimages.com/DQmdkPHZvdYvhwvZzCcgePJSrJdpCPYmpanZ6xkRrSEYcaY/btcQR.png)\nETH (Ether) = 0xB4604a8a19d5cE67B1d53651e818fd173eBd4b31\n![eth.png](https://steemitimages.com/DQmVioU45gJiVkZaR5wBbPYHiFT2rRaTorKHotFyXagUTkf/eth.png)![ethQR.png](https://steemitimages.com/DQmRCqP7o6ZF3cpp2XossEfsxgBSajyUoG1dGNYTUPEQKWH/ethQR.png)\nLTC (Litecoin) = MT7Yvm5fCJcxZuxsDzbrvQcFUNak2Ci5LY\n![ltc.png](https://steemitimages.com/DQmUq75tZ24ew2v1RzSrGmKoKkrDKHVDL93WBhyNcqV5LNz/ltc.png)![ltcQR.jpg](https://steemitimages.com/DQmT7eKchSZ4ZPAgwQusCMTSHEg6MgQaosnL7d2aSb8vgMC/ltcQR.jpg)\nXLM (Stellar Lumen)= GCF6SMXNZXLO26TWL5QH455PSUUCJ2IJL5BN4P53OE7PURBUEBJLH3I5\n![stellar.png](https://steemitimages.com/DQmYtvWTVCLjtscyMB38GfSn6QZqdXukjg8tDswijFw28z5/stellar.png)![xlmQR.jpg](https://steemitimages.com/DQmcai8mLp6pAeAR9gLsMJCV7osGUEkNpUzhQSBhBoqKwi6/xlmQR.jpg)",
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2018/02/05 22:55:39
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2018/02/05 20:24:33
authorsteemitboard
bodyCongratulations @truantlife! You have completed some achievement on Steemit and have been rewarded with new badge(s) : [![](https://steemitimages.com/70x80/http://steemitboard.com/notifications/firstpost.png)](http://steemitboard.com/@truantlife) You published your First Post [![](https://steemitimages.com/70x80/http://steemitboard.com/notifications/firstvoted.png)](http://steemitboard.com/@truantlife) You got a First Vote Click on any badge to view your own Board of Honor on SteemitBoard. For more information about SteemitBoard, click [here](https://steemit.com/@steemitboard) If you no longer want to receive notifications, reply to this comment with the word `STOP` > By upvoting this notification, you can help all Steemit users. Learn how [here](https://steemit.com/steemitboard/@steemitboard/http-i-cubeupload-com-7ciqeo-png)!
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truantlifesent 5.000 SBD to @null- "@truantlife/blockchain-101"
2018/02/05 17:58:39
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blocktradessent 5.448 SBD to @truantlife
2018/02/05 17:57:57
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truantlifesent 5.000 STEEM to @blocktrades- "834702c9-44fb-42c1-b79a-1c8d498e5442"
2018/02/05 17:57:51
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blocktradessent 0.574 STEEM to @truantlife
2018/02/05 17:55:18
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2018/02/05 17:53:51
authortruantlife
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blocktradessent 7.584 STEEM to @truantlife
2018/02/05 17:51:15
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blocktradessent 3.337 STEEM to @truantlife
2018/02/05 17:51:15
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truantlifepublished a new post: blockchain-101
2018/02/05 17:23:09
authortruantlife
body@@ -15982,16 +15982,52 @@ atch.com + - Very similar to coinmarketcap.com %0A5) Redd
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parent author
parent permlinkcryptocurrency
permlinkblockchain-101
titleBlockchain 101
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truantlifepublished a new post: blockchain-101
2018/02/05 16:25:30
authortruantlife
body**Blockchain/Cryptocurrency 101** *There has been quite a bit of interest in cryptocurrency and blockchain technology recently. The technical aspect of how this new technology functions is rarely explained in a rudimentary fashion. This is my attempt to explain the technology for laypersons so they might have a better understanding of how this technology will impact our lives in the future. Below I give a brief explanation on what blockchains are, what they are capable of, how they function, and how to trade cryptocurrencies.* **Blockchain** ![Blockchain-as-chain.png](https://steemitimages.com/DQmRG8aMJxDLWUgm7pxVXPvEvHZ5ehigQFMRSr8LNTjrAsL/Blockchain-as-chain.png) Cryptocurrency, Bitcoin, Ether are all blockchains. Blockchains are basically a spreadsheet (LEDGER) that is duplicated multiple times across a network and updated regularly simultaneously. There is no centralized version of this ledger. It is hosted simultaneously by thousands/millions of computers. These ledgers will update on their own, Bitcoin as an example automatically checks itself every 10 minutes. Each of these 10-minute increment of transactions (in bitcoins case transactions would be sending or receiving bitcoins from one person to another for goods or services) are called BLOCKS. For these blocks to be confirmed, accepted, and updated to the ledger nodes are required. **Nodes (Mining/Forging)** ![blockchain.png](https://steemitimages.com/DQmWc7SkCF1p7inmCh65oUvLHMsB2CubcF92KDsiadUwA8w/blockchain.png) A node is a computer running the blockchain software on the network. The blockchain software will automatically download the entire ledger of all transactions since its inception. At regular intervals, the software will take the transactions of a block (data on the ledger) and convert them into a mathematical puzzle to be solved by randomly chosen nodes (MINING). Mining requires powerful processors (typically GPUs) and substantial quantities of energy to receive mined tokens profitably. When a specific number of nodes solve the puzzle with the same answer they are basically confirming that the data on the block is accurate as multiple independent nodes found the same answer. When confirmed, the block gets added to the previous blocks making a chain of blocks aka a blockchain. As an incentive to run your computer as a node you are rewarded with TOKENS. If a single person or group of people wanted to manipulate the ledger, the amount of machinery and electricity used to achieve a majority of miners thus allowing you to manipulate the ledger is so exponentially expensive that it serves no reasonable purpose. This is an example of a Proof of Work Blockchain System (computer solves puzzle and rewarded with tokens) **Tokens**![tokens.jpeg](https://steemitimages.com/DQmUo22wj3TSbPULzPhBGpZuAk7BD2MrDd3cmgZk3yokcRC/tokens.jpeg) Tokens are part of the core of the blockchain. They are an incentive to validate transactions and create blocks. They gain intrinsic value based on the blockchain they are associated with. Some blockchains grant token holder’s different abilities. With Bitcoin, tokens are needed to pay for transaction fees. Others allow voting rights on how certain blockchain functions are managed. There is a limited amount of Bitcoin that will ever be released to nodes (21 million expected to be all be released by 2033) which also keep inflation from being a problem. Blockchains can create their platform with whatever number of tokens they would like and release them or create means to mine them as they see fit. Essentially, as with any other fiat money (currency that a government has declared to be legal tender NOT backed by a physical commodity), as adoption and trust increases the value of the token will increase. If most people accept Bitcoin for services and stores accept Bitcoin for goods than it is as good as the next currency. **Wallets** ![wallet.png](https://steemitimages.com/DQmc498N8RkUVCPXPiAEqKGVHpFSHvsys68e1MoJHo2SZPP/wallet.png) Whether you mine for tokens, are paid in tokens for goods or services or purchase tokens from a person or currency exchange you need a place to store them securely and a way to send and receive them. Cryptocurrency Wallets don’t store currency, they hold your public and private keys that interface with the blockchain so you can access your balance, send money and manage your funds. The public key allows others to send money to the public key only. A wallet that is "offline" (see Hardware or Paper below) cannot access funds or send money unless it is accessed with another form of wallet, either desktop, online, or mobile. 1) Desktop Wallet - Installed on your computer and are only accessible from that SINGLE computer. Very secure but if someone hacks your computer you are exposed. 2) Online Wallet - Run remotely (cloud based) and are far more convenient to access but make them more vulnerable as they are controlled by a third party and are also vulnerable to hacking attacks. Exchange wallets are online wallets but you are not in control of the private key. View it as a wallet that is lended to you so you can trade. The wallet is technically not yours. 3) Mobile - Ran on an app and are useful as they can be used anywhere including retail stores 4) Hardware - Private keys are stored on a tangible device like a USB drive. They can make transactions online but they are stored offline. Compatible with web interfaces and support many but not all currencies. To use, plug into a computer, enter a pin, send currency and confirm. Safest form of storage. 5) Paper - Basically a physical printout of your private and public keys. It is not stored online anywhere and the only way transactions can happen is if you transfer money with the help of an Online wallet. *Example of a Public Key* = 1A684DbsHQKPVCWgaUsYdF4uQGwTiA9BFT *Example of a Private Key* = E9873D79C6D87DC0FB6A5778633389F4453213303DA61F20BD67FC233AA33262 Most wallets provide a Recovery Mnemonic Passcode that is a series of words (typically 12 to 24 words) in a specific order. If you lose your login information for your wallet you can supply the mnemonic passcode and retrieve your lost login information. If you lose your login information and your mnemonic passcode your wallet will be inaccessible and your tokens are lost to you. The above basically describes a first generation Blockchain Cryptocurrency such as Bitcoin. It is used basically as currency with no centralized entity regulating the release of additional currency and keeping the ledger of where the money is going secure and extremely safe from manipulation. **Second Generation Blockchain** ![smart-contracts.jpg](https://steemitimages.com/DQmf6Hi3oGcpoSsCeG8U322nkWwP8aAXr4GRExL3w8hBi1M/smart-contracts.jpg) The second generation blockchains sprung out of this environment with something more valuable. Utilizing the blockchain system to allow applications to be ran on top of a decentralized secure system. Instead of just recording transactions, contracts could be transmitted the same way. More complex transactions (SMART CONTRACTS) allow for things such as: - Funds to be spent only when a required percentage of people agree - Manage agreements between users (such as insurance) - Provide utility to other contracts - Store information about an application such as domain registration information or membership records This basically can allow applications to be ran on top of the blockchain system. This can cut out the middleman for many real-world applications (mortgages, banking, communications, security confirmations etc.) **Proof of Work/Proof of Stake** ![PoWPoS-img.jpg](https://steemitimages.com/DQmbvUm12v5UfFNtzxD1XMo6zRz4SrYMh2dH45UjCqUjH83/PoWPoS-img.jpg) As I mentioned earlier, Proof of Work (PoW) requires nodes to solve a mathematical puzzle which is rewarded with tokens. Proof of Stake (PoS) is different, the tokens with proof of stake systems are pre-mined meaning they are all created when the blockchain system is created. Blocks are not verified by the typical method. The block validator uses the blockchain software to stake their tokens and are chosen based on specific factors depending on how many tokens the person holds and for how long. Depending on how many tokens they hold will restrict the quantity of blocks they can validate. If they own more they can validate more often but all validators will be chosen randomly keeping the rewards distributed (unlike PoW which typically reward the first completed.) The blockchain still requires a mathematical puzzle to be solved but it is much easier than PoW requiring far less time and energy. If the blockchain has premined all of their tokens then new tokens cannot be mined for rewards in PoS. The reward for staking your tokens to be a validator is a portion of the transaction fee that is charged as part of normal transactions on the blockchain. That is why PoS miners are called forgers. If manipulation is attempted than their stake can be taken from their wallet adding more motivation to prevent data manipulation. **Forks** ![fork.jpg](https://steemitimages.com/DQmfVvQzRR5wVcXn4DmjwXXkazJY54rB79SNXkq4AY1Cb3v/fork.jpg) Some cryptocurrencies may need to update or upgrade the coding of their blockchain software. When this happens usually a fork occurs. This basically means the cryptocurrency splits into two separate cryptocurrencies. Because the nature of blockchain technology, they are decentralized and autonomous so the older version cannot be deleted or removed. If people choose to continue using the old version they can. For mining/forging purposes the nodes will need to choose which they will mine/forge and download the blockchain software on their computer to proceed. When the fork occurs, anyone holding tokens in the original currency will be given the same number of tokens in the forked currency. (When Bitcoin forked to Bitcoin Cash, anyone holding x amount of Bitcoin would receive a new wallet for Bitcoin Cash also containing x amount of Bitcoin Cash.) This is called a Hard Fork and all previous transactions are made invalid. There are also Soft Forks, in this case it is backwards compatible and all previous transactions are valid. This can result in two currencies but in most cases, it doesn’t as it is usually accepted by most miners/forgers because it is backwards compatible. **Exchanges** ![bitcoin-exchange.jpg](https://steemitimages.com/DQmcFJPPBPpN4YNnYNXYf2xyHNen8XbgoPdmz7MNovVRYoT/bitcoin-exchange.jpg) Online currency exchanges allow you to buy, sell or exchange fiat money (USD, EUR, etc.) with digital currencies or in most cases digital currencies for other digital currencies. There are a large variety of different exchanges that are operated in multiple countries but there are around a dozen that the majority of cryptocurrency trading volume are present on. Not all cryptocurrencies will be listed on all exchanges, some have specific prerequisites to be listed on their exchange and there may be fees associated as well. Once your account is set up you will have a list of all available cryptocurrencies to trade. Each currency will have an associated online wallet with the public key address allowing you to send that specific currency to that wallet. (Many exchanges are having delayed or canceled identity verification, currency transfers and lack sufficient customer support due to the influx of new traders) Examples of top exchanges: 1) Coinbase (trades fiat) 2) GDAX (trades fiat) 3) Gemini (trades fiat) 4) Changelly (trades fiat) 5) Bittrex 6) Binance 7) HitBTC 8) EtherDelta 9) Bitfinex 10) Kraken 11) Bithumb 12) Bitstamp 13) Poloniex 14) OKEx 15) Robinhood (trades fiat/cryptocurrency to be traded in February) **Sending/Receiving Tokens** ![sending.png](https://steemitimages.com/DQmTqLNr549G9VvEBnPDSVYgmHfLqKBeDFnsZjx4sLfNKHn/sending.png) All wallets can send digital currency to other wallets. The function is relatively easy, make sure the currency you are sending is going to the appropriate wallet for that currency. Ethereum tokens cannot be sent to a Bitcoin wallet for example. (The tokens aren’t actually moving location; the list of transactions/ownership is what is stored in the wallet). Triple check the wallet public key you are sending the tokens to. If you type the wrong address the tokens will be lost in nearly all incidents. Some mobile wallets allow you to scan a QR code that will automatically enter the public key rather than copying/pasting or typing out the public key. **Taxes** ![taxes-1.jpg](https://steemitimages.com/DQmZS2MvE7jjrLNwutKffhU4DoWf3PrVKZckG2gX3gNDFJ5/taxes-1.jpg) As of January 1, 2018, it appears that taxing on digital currency has changed. Every trade between any digital currencies (Bitcoin to Ether, Ether to Litecoin etc.) will be a taxable transaction. If you hold the currency for longer than one year than you will pay capital gain tax when it is traded or sold (15%-20%) and if you sell or trade in less than a year you will have to add the profit to your taxable income to adjust your tax bracket. **Altcoins** ![altcoin.jpg](https://steemitimages.com/DQmWstcgmJFSYKgbkEJcszgK4ka7m9c5X8UGUZySaAH7V1x/altcoin.jpg) Altcoins are basically any coin that is not Bitcoin. Most cryptocurrencies do not have a native blockchain (their own independent dedicated blockchain). Bitcoin, Ether, Ripple, Waves, NXT, Cardano all have their own native blockchain. Many other cryptocurrencies run on other cryptocurrency’s blockchains. Litecoin is one of many that runs on Bitcoins blockchain, a significant amount run on the Ethereum blockchain. These currencies act as smart contracts running on the adopted blockchain. **DApps (Decentralized Applications)** ![dapps.png](https://steemitimages.com/DQmY89KnnafQtE1jyk8dt2mxNKGkKiCDn48o5LSRhTNgh11/dapps.png) For a blockchain application to be considered a DApp it must be 1) Open source, code available to all 2) Decentralized, uses blockchain cryptographic tech 3) Incentive, must have tokens to fuel itself 4) Algorithm/Protocol, generates tokens and has a built-in consensus mechanism (mining/forging.) There are 3 types of DApps, each basically piggybacks off the platform of the previous Type 1 – Have their own blockchain (like bitcoin) Type 2 – Use the blockchain of Type 1 DApps Type 3 – Use the protocol of Type 2 DApps **ICO (Initial Coin Offering)** ![ico.jpg](https://steemitimages.com/DQmeUAQ224MGtcknTjLsEonteScqXXpYeRpqxJoNhYkdKZB/ico.jpg) Much like an IPO (Initial Public Offering) that offers stock in a private company to the public, an ICO raises money for new Cryptocurrency ventures. Typically, a minimum investment is required in the form of a cryptocurrency such as Bitcoin or Ether and the investor is given tokens of the cryptocurrency at a reduced cost. Since ICO’s are so new, government agencies have not begun regulating these ventures making them extremely risky as anyone with a competent coder can create and market a cryptocurrency that can be used to swindle investors who aren’t cautious. The US government no longer allows its citizens to participate in ICO’s and if you are using a computer with an IP address located in the United States, ICO’s websites will not allow you to invest. **Research** ![research_desk.jpg](https://steemitimages.com/DQmVbdoCfWtig1Uray8rRHwumpGZZ1v6D8JHcoumHvaa4Bd/research_desk.jpg) 1) Whitepapers – Each cryptocurrency will have their own dedicated websites and most will have a whitepaper that has a description of what their cryptocurrency is designed to do. 2) Roadmaps – Also on each cryptocurrency’s website, they tend to have a roadmap or timeline as to when they are planning to complete certain milestones be it added features to the blockchain or wallet or any other important events. 3) Coinmarketcap.com – List of every available cryptocurrency, the exchanges they trade on, market cap, trade volume, available tokens, newly created tokens etc. 4) Livecoinwatch.com 5) Reddit.com (cryptocurrency subreddit) – Subreddits focused on cryptocurrency as well as specific subreddits focused on individual cryptocurrencies. Be cautious as many people on these sites are uninformed and/or are trying to manipulate the market by fooling others to buy or sell based on fraudulent information. 6) Bitcointalk.org – Forums specific to individual cryptocurrencies. There is a lot of self-marketing (bounties) on this site. Take what they say with a grain of salt 7) Twitter/Facebook (Social Media) – Many times news from team members or the cryptocurrency’s social media page will break news before it is listed on any of the above-mentioned outlets. Find out who is working for the cryptocurrency you are interested in and start following the team’s social media. Don’t forget to look at their LinkedIn accounts if available, previous employment and behavioral history to confirm they are competent. 8) GitHub - Code from projects can be uploaded here and reviewed for issues and revisions. **Tools** ![tools.jpg](https://steemitimages.com/DQmVG3HkgKscvo6Ea9PYPcMed4osCHeYjv2banfsG6weXXF/tools.jpg) 1) Delta - A cryptocurrency portfolio tracking app for your phone. Manually enter in the trades you've made and has real time prices to inform you where your profits/losses are at. Free app, Pro version allows you to enter multiple portfolios 2) Google Authenticator/Duo Mobile/Authy - Two step verification apps that add a layer of security to your exchanges and other sites. Most use Google Authenticator, they can be utilized in your exchanges settings. Always backup the initial 2 step passcode in case you lose your phone or buy a new phone. If you enjoyed my article and would like to contribute, all donations are appreciated. BTC (Bitcoin) = 3MZ6PcEG7vNfTo4AqefzPVzqUKFNVZUkmh ![btc.png](https://steemitimages.com/DQmZ9soB9rbQoP7GZGrtWz94br1BdmdPvH2WBqr7aMJYf4Q/btc.png)![btcQR.png](https://steemitimages.com/DQmdkPHZvdYvhwvZzCcgePJSrJdpCPYmpanZ6xkRrSEYcaY/btcQR.png) ETH (Ether) = 0xB4604a8a19d5cE67B1d53651e818fd173eBd4b31 ![eth.png](https://steemitimages.com/DQmVioU45gJiVkZaR5wBbPYHiFT2rRaTorKHotFyXagUTkf/eth.png)![ethQR.png](https://steemitimages.com/DQmRCqP7o6ZF3cpp2XossEfsxgBSajyUoG1dGNYTUPEQKWH/ethQR.png) LTC (Litecoin) = MT7Yvm5fCJcxZuxsDzbrvQcFUNak2Ci5LY ![ltc.png](https://steemitimages.com/DQmUq75tZ24ew2v1RzSrGmKoKkrDKHVDL93WBhyNcqV5LNz/ltc.png)![ltcQR.jpg](https://steemitimages.com/DQmT7eKchSZ4ZPAgwQusCMTSHEg6MgQaosnL7d2aSb8vgMC/ltcQR.jpg) XLM (Stellar Lumen)= GCF6SMXNZXLO26TWL5QH455PSUUCJ2IJL5BN4P53OE7PURBUEBJLH3I5 ![stellar.png](https://steemitimages.com/DQmYtvWTVCLjtscyMB38GfSn6QZqdXukjg8tDswijFw28z5/stellar.png)![xlmQR.jpg](https://steemitimages.com/DQmcai8mLp6pAeAR9gLsMJCV7osGUEkNpUzhQSBhBoqKwi6/xlmQR.jpg)
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parent author
parent permlinkcryptocurrency
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titleBlockchain 101
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      "author": "truantlife",
      "body": "**Blockchain/Cryptocurrency 101**\n\n*There has been quite a bit of interest in cryptocurrency and blockchain technology recently. The technical aspect of how this new technology functions is rarely explained in a rudimentary fashion. This is my attempt to explain the technology for laypersons so they might have a better understanding of how this technology will impact our lives in the future. Below I give a brief explanation on what blockchains are, what they are capable of, how they function, and how to trade cryptocurrencies.*\n \n**Blockchain**\n![Blockchain-as-chain.png](https://steemitimages.com/DQmRG8aMJxDLWUgm7pxVXPvEvHZ5ehigQFMRSr8LNTjrAsL/Blockchain-as-chain.png)\nCryptocurrency, Bitcoin, Ether are all blockchains. Blockchains are basically a spreadsheet (LEDGER) that is duplicated multiple times across a network and updated regularly simultaneously. There is no centralized version of this ledger. It is hosted simultaneously by thousands/millions of computers. These ledgers will update on their own, Bitcoin as an example automatically checks itself every 10 minutes. Each of these 10-minute increment of transactions (in bitcoins case transactions would be sending or receiving bitcoins from one person to another for goods or services) are called BLOCKS. For these blocks to be confirmed, accepted, and updated to the ledger nodes are required.\n\n**Nodes (Mining/Forging)**\n![blockchain.png](https://steemitimages.com/DQmWc7SkCF1p7inmCh65oUvLHMsB2CubcF92KDsiadUwA8w/blockchain.png)\nA node is a computer running the blockchain software on the network. The blockchain software will automatically download the entire ledger of all transactions since its inception. At regular intervals, the software will take the transactions of a block (data on the ledger) and convert them into a mathematical puzzle to be solved by randomly chosen nodes (MINING). Mining requires powerful processors (typically GPUs) and substantial quantities of energy to receive mined tokens profitably. When a specific number of nodes solve the puzzle with the same answer they are basically confirming that the data on the block is accurate as multiple independent nodes found the same answer. When confirmed, the block gets added to the previous blocks making a chain of blocks aka a blockchain. As an incentive to run your computer as a node you are rewarded with TOKENS. If a single person or group of people wanted to manipulate the ledger, the amount of machinery and electricity used to achieve a majority of miners thus allowing you to manipulate the ledger is so exponentially expensive that it serves no reasonable purpose. This is an example of a Proof of Work Blockchain System (computer solves puzzle and rewarded with tokens)\n\n**Tokens**![tokens.jpeg](https://steemitimages.com/DQmUo22wj3TSbPULzPhBGpZuAk7BD2MrDd3cmgZk3yokcRC/tokens.jpeg)\nTokens are part of the core of the blockchain. They are an incentive to validate transactions and create blocks. They gain intrinsic value based on the blockchain they are associated with. Some blockchains grant token holder’s different abilities. With Bitcoin, tokens are needed to pay for transaction fees. Others allow voting rights on how certain blockchain functions are managed. There is a limited amount of Bitcoin that will ever be released to nodes (21 million expected to be all be released by 2033) which also keep inflation from being a problem. Blockchains can create their platform with whatever number of tokens they would like and release them or create means to mine them as they see fit. Essentially, as with any other fiat money (currency that a government has declared to be legal tender NOT backed by a physical commodity), as adoption and trust increases the value of the token will increase. If most people accept Bitcoin for services and stores accept Bitcoin for goods than it is as good as the next currency.\n\n**Wallets**\n![wallet.png](https://steemitimages.com/DQmc498N8RkUVCPXPiAEqKGVHpFSHvsys68e1MoJHo2SZPP/wallet.png)\nWhether you mine for tokens, are paid in tokens for goods or services or purchase tokens from a person or currency exchange you need a place to store them securely and a way to send and receive them. Cryptocurrency Wallets don’t store currency, they hold your public and private keys that interface with the blockchain so you can access your balance, send money and manage your funds. The public key allows others to send money to the public key only. A wallet that is \"offline\" (see Hardware or Paper below) cannot access funds or send money unless it is accessed with another form of wallet, either desktop, online, or mobile.\n\n1) Desktop Wallet - Installed on your computer and are only accessible from that SINGLE computer. Very secure but if someone hacks your computer you are exposed. \n2) Online Wallet - Run remotely (cloud based) and are far more convenient to access but make them more vulnerable as they are controlled by a third party and are also vulnerable to hacking attacks. Exchange wallets are online wallets but you are not in control of the private key. View it as a wallet that is lended to you so you can trade. The wallet is technically not yours. \n3) Mobile - Ran on an app and are useful as they can be used anywhere including retail stores \n4) Hardware - Private keys are stored on a tangible device like a USB drive. They can make transactions online but they are stored offline. Compatible with web interfaces and support many but not all currencies. To use, plug into a computer, enter a pin, send currency and confirm. Safest form of storage. \n5) Paper - Basically a physical printout of your private and public keys. It is not stored online anywhere and the only way transactions can happen is if you transfer money with the help of an Online wallet.\n\n*Example of a Public Key* = 1A684DbsHQKPVCWgaUsYdF4uQGwTiA9BFT \n*Example of a Private Key* = E9873D79C6D87DC0FB6A5778633389F4453213303DA61F20BD67FC233AA33262\n\nMost wallets provide a Recovery Mnemonic Passcode that is a series of words (typically 12 to 24 words) in a specific order. If you lose your login information for your wallet you can supply the mnemonic passcode and retrieve your lost login information. If you lose your login information and your mnemonic passcode your wallet will be inaccessible and your tokens are lost to you. The above basically describes a first generation Blockchain Cryptocurrency such as Bitcoin. It is used basically as currency with no centralized entity regulating the release of additional currency and keeping the ledger of where the money is going secure and extremely safe from manipulation.\n\n**Second Generation Blockchain**\n![smart-contracts.jpg](https://steemitimages.com/DQmf6Hi3oGcpoSsCeG8U322nkWwP8aAXr4GRExL3w8hBi1M/smart-contracts.jpg)\nThe second generation blockchains sprung out of this environment with something more valuable. Utilizing the blockchain system to allow applications to be ran on top of a decentralized secure system. Instead of just recording transactions, contracts could be transmitted the same way. More complex transactions (SMART CONTRACTS) allow for things such as: \n- Funds to be spent only when a required percentage of people agree \n- Manage agreements between users (such as insurance)\n- Provide utility to other contracts \n- Store information about an application such as domain registration information or membership records \n\nThis basically can allow applications to be ran on top of the blockchain system. This can cut out the middleman for many real-world applications (mortgages, banking, communications, security confirmations etc.)\n\n**Proof of Work/Proof of Stake**\n![PoWPoS-img.jpg](https://steemitimages.com/DQmbvUm12v5UfFNtzxD1XMo6zRz4SrYMh2dH45UjCqUjH83/PoWPoS-img.jpg)\nAs I mentioned earlier, Proof of Work (PoW) requires nodes to solve a mathematical puzzle which is rewarded with tokens. Proof of Stake (PoS) is different, the tokens with proof of stake systems are pre-mined meaning they are all created when the blockchain system is created. Blocks are not verified by the typical method. The block validator uses the blockchain software to stake their tokens and are chosen based on specific factors depending on how many tokens the person holds and for how long. Depending on how many tokens they hold will restrict the quantity of blocks they can validate. If they own more they can validate more often but all validators will be chosen randomly keeping the rewards distributed (unlike PoW which typically reward the first completed.) The blockchain still requires a mathematical puzzle to be solved but it is much easier than PoW requiring far less time and energy. If the blockchain has premined all of their tokens then new tokens cannot be mined for rewards in PoS. The reward for staking your tokens to be a validator is a portion of the transaction fee that is charged as part of normal transactions on the blockchain. That is why PoS miners are called forgers. If manipulation is attempted than their stake can be taken from their wallet adding more motivation to prevent data manipulation.\n\n**Forks**\n![fork.jpg](https://steemitimages.com/DQmfVvQzRR5wVcXn4DmjwXXkazJY54rB79SNXkq4AY1Cb3v/fork.jpg)\nSome cryptocurrencies may need to update or upgrade the coding of their blockchain software. When this happens usually a fork occurs. This basically means the cryptocurrency splits into two separate cryptocurrencies. Because the nature of blockchain technology, they are decentralized and autonomous so the older version cannot be deleted or removed. If people choose to continue using the old version they can. For mining/forging purposes the nodes will need to choose which they will mine/forge and download the blockchain software on their computer to proceed. When the fork occurs, anyone holding tokens in the original currency will be given the same number of tokens in the forked currency. (When Bitcoin forked to Bitcoin Cash, anyone holding x amount of Bitcoin would receive a new wallet for Bitcoin Cash also containing x amount of Bitcoin Cash.) This is called a Hard Fork and all previous transactions are made invalid. There are also Soft Forks, in this case it is backwards compatible and all previous transactions are valid. This can result in two currencies but in most cases, it doesn’t as it is usually accepted by most miners/forgers because it is backwards compatible.\n\n**Exchanges**\n![bitcoin-exchange.jpg](https://steemitimages.com/DQmcFJPPBPpN4YNnYNXYf2xyHNen8XbgoPdmz7MNovVRYoT/bitcoin-exchange.jpg)\nOnline currency exchanges allow you to buy, sell or exchange fiat money (USD, EUR, etc.) with digital currencies or in most cases digital currencies for other digital currencies. There are a large variety of different exchanges that are operated in multiple countries but there are around a dozen that the majority of cryptocurrency trading volume are present on. Not all cryptocurrencies will be listed on all exchanges, some have specific prerequisites to be listed on their exchange and there may be fees associated as well. Once your account is set up you will have a list of all available cryptocurrencies to trade. Each currency will have an associated online wallet with the public key address allowing you to send that specific currency to that wallet. (Many exchanges are having delayed or canceled identity verification, currency transfers and lack sufficient customer support due to the influx of new traders) Examples of top exchanges: \n1) Coinbase (trades fiat) \n2) GDAX (trades fiat) \n3) Gemini (trades fiat) \n4) Changelly (trades fiat) \n5) Bittrex \n6) Binance \n7) HitBTC \n8) EtherDelta \n9) Bitfinex \n10) Kraken \n11) Bithumb \n12) Bitstamp \n13) Poloniex \n14) OKEx\n15) Robinhood (trades fiat/cryptocurrency to be traded in February)\n\n**Sending/Receiving Tokens**\n![sending.png](https://steemitimages.com/DQmTqLNr549G9VvEBnPDSVYgmHfLqKBeDFnsZjx4sLfNKHn/sending.png)\nAll wallets can send digital currency to other wallets. The function is relatively easy, make sure the currency you are sending is going to the appropriate wallet for that currency. Ethereum tokens cannot be sent to a Bitcoin wallet for example. (The tokens aren’t actually moving location; the list of transactions/ownership is what is stored in the wallet). Triple check the wallet public key you are sending the tokens to. If you type the wrong address the tokens will be lost in nearly all incidents. Some mobile wallets allow you to scan a QR code that will automatically enter the public key rather than copying/pasting or typing out the public key.\n\n**Taxes**\n![taxes-1.jpg](https://steemitimages.com/DQmZS2MvE7jjrLNwutKffhU4DoWf3PrVKZckG2gX3gNDFJ5/taxes-1.jpg)\nAs of January 1, 2018, it appears that taxing on digital currency has changed. Every trade between any digital currencies (Bitcoin to Ether, Ether to Litecoin etc.) will be a taxable transaction. If you hold the currency for longer than one year than you will pay capital gain tax when it is traded or sold (15%-20%) and if you sell or trade in less than a year you will have to add the profit to your taxable income to adjust your tax bracket.\n\n**Altcoins**\n![altcoin.jpg](https://steemitimages.com/DQmWstcgmJFSYKgbkEJcszgK4ka7m9c5X8UGUZySaAH7V1x/altcoin.jpg)\nAltcoins are basically any coin that is not Bitcoin. Most cryptocurrencies do not have a native blockchain (their own independent dedicated blockchain). Bitcoin, Ether, Ripple, Waves, NXT, Cardano all have their own native blockchain. Many other cryptocurrencies run on other cryptocurrency’s blockchains. Litecoin is one of many that runs on Bitcoins blockchain, a significant amount run on the Ethereum blockchain. These currencies act as smart contracts running on the adopted blockchain.\n\n**DApps (Decentralized Applications)**\n![dapps.png](https://steemitimages.com/DQmY89KnnafQtE1jyk8dt2mxNKGkKiCDn48o5LSRhTNgh11/dapps.png)\nFor a blockchain application to be considered a DApp it must be \n1) Open source, code available to all \n2) Decentralized, uses blockchain cryptographic tech \n3) Incentive, must have tokens to fuel itself \n4) Algorithm/Protocol, generates tokens and has a built-in consensus mechanism (mining/forging.)\n\nThere are 3 types of DApps, each basically piggybacks off the platform of the previous \nType 1 – Have their own blockchain (like bitcoin) \nType 2 – Use the blockchain of Type 1 DApps \nType 3 – Use the protocol of Type 2 DApps\n\n**ICO (Initial Coin Offering)**\n![ico.jpg](https://steemitimages.com/DQmeUAQ224MGtcknTjLsEonteScqXXpYeRpqxJoNhYkdKZB/ico.jpg)\nMuch like an IPO (Initial Public Offering) that offers stock in a private company to the public, an ICO raises money for new Cryptocurrency ventures. Typically, a minimum investment is required in the form of a cryptocurrency such as Bitcoin or Ether and the investor is given tokens of the cryptocurrency at a reduced cost. Since ICO’s are so new, government agencies have not begun regulating these ventures making them extremely risky as anyone with a competent coder can create and market a cryptocurrency that can be used to swindle investors who aren’t cautious. The US government no longer allows its citizens to participate in ICO’s and if you are using a computer with an IP address located in the United States, ICO’s websites will not allow you to invest.\n\n**Research**\n![research_desk.jpg](https://steemitimages.com/DQmVbdoCfWtig1Uray8rRHwumpGZZ1v6D8JHcoumHvaa4Bd/research_desk.jpg)\n1) Whitepapers – Each cryptocurrency will have their own dedicated websites and most will have a whitepaper that has a description of what their cryptocurrency is designed to do. \n2) Roadmaps – Also on each cryptocurrency’s website, they tend to have a roadmap or timeline as to when they are planning to complete certain milestones be it added features to the blockchain or wallet or any other important events. \n3) Coinmarketcap.com – List of every available cryptocurrency, the exchanges they trade on, market cap, trade volume, available tokens, newly created tokens etc. \n4) Livecoinwatch.com\n5) Reddit.com (cryptocurrency subreddit) – Subreddits focused on cryptocurrency as well as specific subreddits focused on individual cryptocurrencies. Be cautious as many people on these sites are uninformed and/or are trying to manipulate the market by fooling others to buy or sell based on fraudulent information. \n6) Bitcointalk.org – Forums specific to individual cryptocurrencies. There is a lot of self-marketing (bounties) on this site. Take what they say with a grain of salt \n7) Twitter/Facebook (Social Media) – Many times news from team members or the cryptocurrency’s social media page will break news before it is listed on any of the above-mentioned outlets. Find out who is working for the cryptocurrency you are interested in and start following the team’s social media. Don’t forget to look at their LinkedIn accounts if available, previous employment and behavioral history to confirm they are competent. \n8) GitHub - Code from projects can be uploaded here and reviewed for issues and revisions.\n\n**Tools**\n![tools.jpg](https://steemitimages.com/DQmVG3HkgKscvo6Ea9PYPcMed4osCHeYjv2banfsG6weXXF/tools.jpg)\n1) Delta - A cryptocurrency portfolio tracking app for your phone. Manually enter in the trades you've made and has real time prices to inform you where your profits/losses are at. Free app, Pro version allows you to enter multiple portfolios\n\n2) Google Authenticator/Duo Mobile/Authy - Two step verification apps that add a layer of security to your exchanges and other sites. Most use Google Authenticator, they can be utilized in your exchanges settings. Always backup the initial 2 step passcode in case you lose your phone or buy a new phone.\n\n\nIf you enjoyed my article and would like to contribute, all donations are appreciated.\n\nBTC (Bitcoin) = 3MZ6PcEG7vNfTo4AqefzPVzqUKFNVZUkmh\n![btc.png](https://steemitimages.com/DQmZ9soB9rbQoP7GZGrtWz94br1BdmdPvH2WBqr7aMJYf4Q/btc.png)![btcQR.png](https://steemitimages.com/DQmdkPHZvdYvhwvZzCcgePJSrJdpCPYmpanZ6xkRrSEYcaY/btcQR.png)\nETH (Ether) = 0xB4604a8a19d5cE67B1d53651e818fd173eBd4b31\n![eth.png](https://steemitimages.com/DQmVioU45gJiVkZaR5wBbPYHiFT2rRaTorKHotFyXagUTkf/eth.png)![ethQR.png](https://steemitimages.com/DQmRCqP7o6ZF3cpp2XossEfsxgBSajyUoG1dGNYTUPEQKWH/ethQR.png)\nLTC (Litecoin) = MT7Yvm5fCJcxZuxsDzbrvQcFUNak2Ci5LY\n![ltc.png](https://steemitimages.com/DQmUq75tZ24ew2v1RzSrGmKoKkrDKHVDL93WBhyNcqV5LNz/ltc.png)![ltcQR.jpg](https://steemitimages.com/DQmT7eKchSZ4ZPAgwQusCMTSHEg6MgQaosnL7d2aSb8vgMC/ltcQR.jpg)\nXLM (Stellar Lumen)= GCF6SMXNZXLO26TWL5QH455PSUUCJ2IJL5BN4P53OE7PURBUEBJLH3I5\n![stellar.png](https://steemitimages.com/DQmYtvWTVCLjtscyMB38GfSn6QZqdXukjg8tDswijFw28z5/stellar.png)![xlmQR.jpg](https://steemitimages.com/DQmcai8mLp6pAeAR9gLsMJCV7osGUEkNpUzhQSBhBoqKwi6/xlmQR.jpg)",
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      "title": "Blockchain 101"
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  "timestamp": "2018-02-05T16:25:30",
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steemcreated a new account: @truantlife
2018/02/05 09:07:12
active{"account_auths":[],"key_auths":[["STM5pCugd8wBKLeLUwEuRygKwYYLUSuuEWFRp42RiqdUmNZEV91Ah",1]],"weight_threshold":1}
creatorsteem
delegation29700.000000 VESTS
extensions[]
fee0.500 STEEM
json metadata
memo keySTM7fcE1DJN6SUdRVb2dgPoKerfofSTz6mjzu1KxrVicyCHytzXib
new account nametruantlife
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Transaction InfoBlock #19599492/Trx 6293549c902acca72eceb7769bb69e6366087df9
View Raw JSON Data
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Account Metadata

POSTING JSON METADATA
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Auth Keys

Owner
Single Signature
Public Keys
STM79D9wW3b5fGSzf2BGV54UR6WYf6Zv4wcr4xAfb6hv13F9piPFs1/1
Active
Single Signature
Public Keys
STM5pCugd8wBKLeLUwEuRygKwYYLUSuuEWFRp42RiqdUmNZEV91Ah1/1
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Single Signature
Public Keys
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Memo
STM7fcE1DJN6SUdRVb2dgPoKerfofSTz6mjzu1KxrVicyCHytzXib
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[]