Information about cryptocurrencies and their main components
Cryptocurrencies have become a popular name in recent years, as many people invest in these digital assets in the hope of making a profit from them. However, before diving into the world of trading or investing, it is very important to understand the basics of cryptocurrencies. In this article, we will examine the main components of cryptocurrencies, focusing on wallet addresses, EVM, and circulating supply.
Wallet Address
A wallet address is a unique identifier for the cryptocurrencies a user holds. It acts as a digital signature that allows users to check their balances and transfer funds from one account to another. When you create a new wallet or transfer funds, you enter your public key, which creates a unique wallet address.
EVM (Ethereum Virtual Machine)
The Ethereum Virtual Machine (EVM) is the software that runs smart contracts on the Ethereum blockchain. It is responsible for verifying transactions, managing state, and interacting with other nodes in the network. The EVM uses a combination of gas, a virtual currency, to perform transactions and validate the integrity of the blockchain.
Circulating Supply
The circulating supply refers to the total number of coins or tokens that are available for trading, use, or storage. It is calculated by subtracting the total number of coins mined (or created) at any given time from the total number of coins in escrow.
To illustrate this concept:
- Let’s say you have 100 Ethereum coins.
- On January 1st, 2 billion coins were mined, bringing the total supply to 4.8 billion.
- If you own just 0.01% of these coins, your holdings would be 48 million coins.
How to Calculate Circulating Supply
To calculate circulating supply, follow these steps:
- Find the total number of coins created or mined (for example, 4.8 billion).
- Subtract the number of coins you own from this total (for example, 100 – 48 million = 52 million).
- This result shows the circulating supply of your wallet.
Conclusion
In summary, it is very important for anyone interested in cryptocurrencies to understand wallet addresses, EVMs, and circulating supplies. By understanding these concepts, you can make informed decisions about investing or trading in cryptocurrencies. Remember, the Ethereum blockchain has a fixed total supply of 21 million coins, which will be mined as new blocks are created.
By monitoring market trends and understanding the inner workings of the cryptocurrency ecosystem, you can navigate this rapidly evolving space more effectively and make more informed decisions about your investments.
Additional Resources
- [Official Ethereum Website]( Learn more about Ethereum, its features, and its development roadmap.
- [CoinMarketCap]( A leading cryptocurrency data platform that provides real-time prices, charts, and market analysis.
- [CryptoCompare]( A comprehensive cryptocurrency exchange data portal that offers insights into markets, wallets, and transactions.
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