I'm trying to understand crypto-currencies...

[Jibreel]

Hi all,

So I'm looking at how these currencies work and their practical applications. If I'm understanding correctly... would it be right to say that crypto currencies are like decentralised computers, where:

     Miners=Processors
     Nodes=hard drives
     Wallets=Interface/OS

My questions:

1) Is the above analogy correct/wrong and how?

2) On a currency like Etherium, are the miners doing all the processing for the DAPPs?

3)could a currency contain the wallet of another currency? For example could an Etherium DAPP contain within it a Bitcoin wallet. Or would this not be possible as a Bitcoin wallet within Etherium be unable to talk to the Bitcoin network?

Any help with those questions would be much appreciated...  Thanks

[hexafraction]

Hi all,

So I'm looking at how these currencies work and their practical applications. If I'm understanding correctly... would it be right to say that crypto currencies are like decentralised computers, where:

     Miners=Processors
     Nodes=hard drives
     Wallets=Interface/OS

My questions:

1) Is the above analogy correct/wrong and how?

2) On a currency like Etherium, are the miners doing all the processing for the DAPPs?

3)could a currency contain the wallet of another currency? For example could an Etherium DAPP contain within it a Bitcoin wallet. Or would this not be possible as a Bitcoin wallet within Etherium be unable to talk to the Bitcoin network?

1) It is very loose, and not entirely correct. Miners do secure the network and advance its state by adding new blocks on top of the existing chain, but calling them processors while calling the nodes hard disks is not correct. Each miner has an associated node (whether at their mining pool or locally if mining solo) that provides them the block template which they mine on. A wallet is simply a means of storing keys and using them to make ECDSA signatures based on network state, but they are, in a way, a "frontend" to a node, if only in an indirect sense in an analogy.

2) Not specifically experienced with Ethereum, but as far as I know all nodes have to execute EVM instructions, not just miners.

3) There's already efforts to include Bitcoin block headers in Ethereum; see http://btcrelay.org/

[Jibreel]

Ok that gives me more stuff to research, so thanks. One more question if your up to it:

Does a wallet need to be online in order to confirm receiving the coin. Or is the conformation done solely by others in the network?

Thanks again

[noictib]

Ok that gives me more stuff to research, so thanks. One more question if your up to it:

Does a wallet need to be online in order to confirm receiving the coin. Or is the conformation done solely by others in the network?

Thanks again

Ofcourse the wallet should be online for the confirmation from one wallet to another wallet . If you will send the coin form one of your wallet then that will need the server system where the logical problem get solved during the process that goes through the main server . So it is mendatory part that main wallet should remain online .
But here a main thing is that here no one can tell about such technical terms  , so here I will suggest you to go in the altcoin development section and see the mendatory things that needed for the transaction .
And also.you will found the precise order of the system that works in the coins market .
https://bitcointalk.org/index.php?topic=615244.0
Just go through this link and understand logic of the altcoins .

[arkimede]

You will need to do your research previous to your invest, just saying

[Crypto_Expert]

You will need to do your research previous to your invest, just saying

arkimede , But how to do these studies?

[hexafraction]

Ok that gives me more stuff to research, so thanks. One more question if your up to it:

Does a wallet need to be online in order to confirm receiving the coin. Or is the conformation done solely by others in the network?

Thanks again

A "confirmation" is simply the presence of a block on a chain that agrees on that transaction existing; if the block containing your transaction is the latest one, it's considered one confirmation. If there's a block after it, there are two confirmations. If there are two blocks after it, then three, and so on. These confirmations are "created" by the miner who agrees to include your txn in their block, as well as the miners mining on top of that chain. Clients only have to go online and update their understanding of the state of the blockchain in order to "confirm" receiving that coin; this can be done much later.

Ofcourse the wallet should be online for the confirmation from one wallet to another wallet . If you will send the coin form one of your wallet then that will need the server system where the logical problem get solved during the process that goes through the main server . So it is mendatory part that main wallet should remain online .

There's no such thing as a "main server" in a decentralized cryptocurrency. What you're saying doesn't make sense.

But here a main thing is that here no one can tell about such technical terms  , so here I will suggest you to go in the altcoin development section and see the mendatory things that needed for the transaction .

Why not? There are developers, cryptography researchers, and students studying these things in depth on this forum that can provide this information in great detail in technical terms.