«Evaluation of cryptocurrencies, Erc-20 tokens and Ethereum virtual machines: understand the basic concepts and risks of cryptography»
The world of cryptocurrency has played a long way since it was founded in 2009. With the increase in decentralized applications (DAPPS) and blockchain technology, numerous cryptocurrencies have appeared, each of which its properties, applications and risks have emerged unique potentials with its unique potential properties, applications and risks. In this article we will deal with three important concepts: Crypt, ERC-20-Token and Virtual Machines (EVM) of Ethereum, which give an overview of what they bring with them and why FUD (fear, uncertainty and doubt), which are Surrounded by these assets, it is essential to understand.
What are cryptocurrencies?
Cryptocurrencies are digital or virtual currencies that use safety and control cryptography. Unlike conventional fiduciary currencies, cryptocurrencies only exist electronically and are decentralized, which means that no central authority controls them. The most widespread cryptocurrency is Bitcoin (BTC), but others include Ethereum (ETH), Litecoin (LTC) and Monero (XMR).
What is Token ERC 20?
ERC-20 is a Token standard designed by the Openzpelin Foundation, which allows the creation of tokens that are compatible with the Ethereum virtual machine (EVM). ERC-20 tokens are based on the Ethereum block chain and offer various applications, including supply models, care stakes and safety tokens. They are known for their relatively high liquidity and introduction compared to other tokens standards.
What is EVM?
Ethereum Virtual Machine (EVM) is a software platform that carries out intelligent contracts in the Ethereum block chain. It was designed by Vitalik Buterin and published in 2016. With the EVM, developers can create self -control with specific rules to ensure that transactions are carried out precisely and efficiently. This technology has allowed the creation of decentralized applications (DAPP) that can interact with each other without a central authority.
FUD for cryptographic assets
Fear, uncertainty and doubt (FUD) are a psychological phenomenon that relates to negative attitudes towards an asset or company. In the context of cryptocurrency trade, FUD can manifest in different forms, including:
- Price volatility : Excessive sales pressure can lead to rapid price waste, which makes investors difficult to buy or keep assets.
- Speculation : Investors can operate speculative bets on a certain asset with the hope of obtaining profits from their price movement.
- Regulatory uncertainty : Changes in regulations or laws for cryptocurrency trade can cause uncertainty and fear among investors.
Diploma
Cryptocurrencies, ERC-20 tokens and EVMs are critical components of the blockchain ecosystem. Understanding these concepts is important to make well -founded investment decisions and navigate the complex world of cryptographic trade. By recognizing the potential risks associated with FUD and keeping up with market developments, investors can use their resources more effectively.
References:
- «Openspelin: ERC-20 Token Standard» (2020)
- «Documentation of the Virtual Machine of Ethereum (EVM)» (2022)
- «VITALIK BUTERIN: The Ethereum Project» (2020)
Note: This article must provide general information and without investment advice. The cryptocurrency trade entails considerable risks, including the potential of significant losses. Before investing in an asset, it is important to carry out an exhaustive investigation, determine clear risk management strategies and consult a financial advisor if necessary.