Cryptocurrency

From Trezor Wiki
(Redirected from Coin)
Jump to: navigation, search


A cryptocurrency (or less formally a coin) is a decentralized payment network with an independent currency-like asset that functions on the network and is essential to its function.

As opposed to government electronic money, cryptocurrencies use modern cryptography and decentralization to secure transactions and creation of monetary units. Cryptocurrency assets cannot be seized from their owners by a decree. Cryptocurrency transactions are global and cannot be easily censored.

Cryptocurrencies and Trezor

Trezor supports a number of cryptocurrencies. For their full list see trezor.io/coins.

For more information about selected cryptocurrencies and how to use them with Trezor, see the relevant section of the Glossary.

For supported third-party wallets, see Compatible third-party wallets and services.

Bitcoin and alternative cryptocurrencies

Bitcoin, created in 2009, was the first cryptocurrency. Since then, numerous alternative cryptocurrencies have been created. These are frequently referred to as altcoins.

See also Bitcoin, Glossary - Altcoins, Supported coins

Cryptocurrency: a network or an asset?

A common area of confusion when talking about cryptocurrency is that the word may actually mean two things:

  1. a network of computers running common software to create decentralized currency and payment system
  2. an asset or token inherent to the cryptocurrency network

In the first sense, we can say that "Cryptocurrency is a revolutionary invention." In the second sense, it is possible to say "I hold several cryptocurrencies on my Trezor."

Things should get a little bit more clear when reading about particular cryptocurrency, because of the following common practice of using uppercase and lowercase letter.

For example Bitcoin with uppercase B is used when referring to the Bitcoin as a network, system, software or protocol, while bitcoin with lowercase b is used referring to an asset, currency or its units. Thus it is quite clear what is meant in "Many people have realized that Bitcoin is a great way to send payments globally." as well as in "Most mainstream economists think that the bitcoin's fixed monetary supply is a bad idea."

See also: Drawing the distinction between the uppercase B and lowercase b in Bitcoin