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What is a crypt and what is its use for people – in simple words

What is a crypt and what is its use for people – in simple words

Today, cryptocurrency (crypto money) is mainly a tool for earning money, given its high exchange volatility (strong price fluctuations - growth and fall).

The views of many people, especially post-Soviet views: "Crypt is something from the field of fraud and deception, like MMM!».

Very few people understand the principle and its essence, so they think so. And some people do not want to understand this because of the complexity, as it seems to them, of all this itself. Everything should be simple and clear, like in a savings bank, but here ...

On the Internet a lot of information about this, but it is quite difficult for the majority of the audience to perceive due to the use of complex terminology in the description of all these processes.

Let's explain in simple words, on the fingers - what is a crypt and what is its social significance and benefit for people .

There are a lot of crypts - Bitcoin (Bitcoin - BTC), Ethereum (Ethereum - ETH), etc.

Many associate the concept of crypts with money, but in essence it is a network (blockchain) or an environment that is served directly by its derivatives - these bitcoins, ethereums, etc. (money used purely in calculations within the network itself).

For example, consider the ETH (Ethereum) network.

For clarity and better understanding, let's imagine ETH as an Internet network where information is transmitted from one person to another. The transfer of information can be presented, for example, in the form of a contract of sale, when one person interacts with another through a software algorithm to solve issues related to the implementation of the transaction.

In order for the program to be able to transmit this information, it is necessary to spend certain resources (encrypt, send, receive - computational costs). The more information needs to be sent, the more computer/machine power is needed, i.e. electricity. Those who give these capacities to solve these tasks on the network are called by miners.

Thus, the maintenance of this process (information transfer) requires some costs. These costs in the network are treated as GAS (gas). Each operation requires a certain amount of this gas. Therefore, it was decided that the miners (gases) in the network would have their own money to cover these costs, and they were called ETH (ether). They are generated by the network and given to miners for the work they do – network maintenance (blockchain).

Well, they came up with this money online and what's next, who needs it and why they suddenly have value in the world?

And their value began to grow due to the fact that in this network (in particular ETH) it is possible to write programs that will be able to solve issues of social significance.

Programmers will write a program in a language supported by the network, which will provide an opportunity to conclude contracts (and not only) through this network, where no one can deceive anyone, everything will be honest and objective. Everything will be done on a software algorithm, without the bureaucracy, unnecessary fuss and costs that are inherent in current life.

A large number of startups (software ideas) can be created in the ETH network, which are aimed at implementing projects of social significance.

Creators of various projects on the Ethereum blockchain can produce their own tokens.

Why do we need a separate currency (tokens) for each project?

Even in real life, we often use a certain form of tokens instead of cash. For example, tokens at the water park, coupons for free lunch, purchases inside various games. All startups (projects) here is the App, the money of the network (environment) is ETH, and the bonuses inside the project are tokens. Tokens can be exchanged for the same ETH and vice versa.

We can say that projects within their network are like cities within the country.

what are ETH blockchain network tokens

Startups (projects – smart contracts) can be of any orientation - under purchase and sale agreements (between people, organizations), to pay for utilities, pensions, medical care, educational and tax areas, to quickly make payments anywhere in the world, etc..

That's why, when society moves from today's processes (paper, walking, signatures, cash register for payment, certificates, etc.), built on the principles of bureaucracy and corruption generated by it, to the software level (via blockchain), then ETH money and its tokens will be needed to service this network.

The greater the need for a new and solving the current problems of society, the more the price of the crypt will grow, because the demand for these coins / tokens will be more and more.

And now think for yourself «whether the time is just around the corner » when everything will move to a better track for the benefit of society.

Therefore, those who understand which networks (Bitcoin, Ethereum) and what benefits they can bring to people in the near future, they stock up on their derivatives (crypto money), especially considering today's "misunderstandings" with the search for alternative investment directions. This explains the high demand for it and the current price on world exchanges.

What is a crypt and what is its use for people, in simple words, Something like that!

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