What is Cryptocurrency & Smart contract?
Cryptocurrency is a Digital Token uses a Blockchain to track Balances of Users
Cryptocurrency is: Programmable Money
Smart Contract is combining Legal money with Code to automate the behavior. Software is the Judge.
Contract is “Code”: takes inputs and returns outputs
Under Crypto Finance we have -> Decentralized Exchange(protocol): is a set of Smart contracts on a Blockchain which enables, Users to Trade Tokens (Buy/Sell)
Decentralized exchange (dex) allows buyers & sellers to trade tokens directly without the Exchange acting as an intermediary.
Stable coins: goal is to maintain Cryptocurrency, pegged to some Collateral securities (US $ Dollar or any Commodity)
Wallet: Private key & Public key is required to manage your wallet
Every User on Blockchain (who wants to Trade Tokens): needs a Wallet
Tokens & ICO workflow:
- Issue/Creating new Token (in Exchange)
- Listing of Token (in Exchange)
- Trading of Token against another Token (in Exchange)
*Create/Issue a new Token
To create a new Token, we have to specify these Token attributes = [“Name”, “Total supply”, “Exchange Name”]
Once Issued, the Tokens are created inside Blockchain platform. Tokens have a “Owner Key” & are stored in a Wallet. Tokens are also called “Coins”
After we Issue a new Token, it has these attributes [“Token Type”, “Token Name”, “Token Symbol”, “Total Supply”, “Owner Key”]
*Listing a new Token on Exchange:
Attributes for Listing your new Token [“Symbol”, “Quote Symbol”, “Initial Price of Token”, “Owner Key”]
These attributes are required, for listing your Tokens on any Exchange.
*Trading a new Token on Exchange:
To Buy & Sell Tokens on a Exchange, the Users have to create Orders for (Buy/Sell)
(Orders for Buy -> Transactions created, once Orders are Cleared -> User Wallets are Updated with new Tokens (bought))
