WE'RE NOT MEME'N AROUND: Meme Coin investing with a twist

Chapter 2: How Crypto Works

Introduction

Now that you understand what cryptocurrency is, let’s take a closer look at how it actually works. Cryptocurrency may seem complex at first, but once you understand the core systems behind it, everything starts to make sense. At the heart of every cryptocurrency is a network of computers working together to verify, record, and secure transactions. This network doesn’t rely on banks, governments, or any central authority. Instead, it operates through code, transparency, and shared responsibility, which is what makes crypto both innovative and powerful.

Cryptocurrency is often spoken of as something mysterious, a hidden code, a distant technology, a world reserved for the technical elite. But at its heart, cryptocurrency is simply a system of trust without a single ruler. It is a network of many individuals, many computers, many hands agreeing on a shared truth of who owns what. Where traditional money relies on banks and governments to define value and keep records, cryptocurrency relies on mathematics, transparency, and collective verification. It is a ledger of transactions not locked in a single vault, but mirrored across thousands of independent machines, each one holding a piece of the truth.

This chapter is your key to understanding the engine beneath the surface, the structure that allows cryptocurrency to function with no central authority and yet remain reliable, traceable, and secure. This is where cryptocurrency stops feeling abstract, and begins to feel logical.

Understanding Key Concepts & Principals

2.1. The Role of the Blockchain

The system that makes all of this possible is called the blockchain.

You can think of the blockchain as a public, digital ledger, a record of every transaction that has ever happened in that cryptocurrency. Instead of being stored in one place, this ledger is copied across thousands of computers (called nodes) all around the world.

Because so many computers hold the same information:

Transactions are nearly impossible to fake or alter
No single group controls the system
Everyone can verify transactions for themselves

This is what makes blockchain trustworthy without needing a bank.

2.2. How a Transaction Works

When someone sends cryptocurrency to someone else, here’s what happens:

A transaction request is made.
The request is broadcast to the crypto network.
Computers in the network check to confirm the transaction is valid.
Once verified, the transaction is added to a block.
That block is then linked to previous blocks, forming the blockchain.

Every block on the chain strengthens the security of the entire network.

Diagram 1: How Cryptocurrency Works

2.3. Decentralization: Shared Power

Unlike traditional currency systems where one institution holds authority, cryptocurrency is decentralized. This means the network is run collectively, not controlled by one person, company, or government.

This creates:

Freedom from traditional financial restrictions
Transparency in how funds move
Security through shared responsibility

(See "Answers" at the bottom of this screen)

2.4. Why This Matters

Understanding how cryptocurrency works isn’t just about learning the technology — it’s about recognizing the shift in financial power taking place right now. For many people, change can be uncomfortable. Some will embrace it with excitement, while others may resist it or question it. But regardless of how we feel, change happens.

You deserve the right to be informed, prepared, and feel empowered when making financial decisions. By understanding how these new digital currencies operate, you're not just placing yourself in a position to make educated and informed decisions about your financial future, but you are ensuring that you will not be left behind as the world moves forward.

Cryptocurrency allows people to:

Move money quickly and globally
Store value digitally
Participate in a financial system without needing permission from banks

Remember: You're not just learning a new asset class, you're stepping into a new financial era.

Chapter 2: Reflctions & Takeaways

Cryptocurrency can seem abstract at first, a digital thing moving through invisible networks. But once you understand how it works, you begin to see that it is not a mystery at all. It is a system built on something deeply human: agreement.

Every transaction on the blockchain is verified not by trust in a single authority, but by the collective verification of many independent participants. This means that no one person, institution, bank, or government has the power to rewrite or overturn the record.
The truth is shared, and because it is shared, it is protected.

This chapter has shown that:

The blockchain is a public ledger, open for anyone to view.
Transparency replaces secrecy.
Verification is decentralized, meaning no single entity controls the system.
Power is distributed, not concentrated.
A network of computers (nodes) maintains the system together.
Security comes from collaboration, not control.
Transactions are grouped into blocks and linked into a chain.
The past cannot be quietly altered — memory is permanent.
Trust emerges from math, consensus, and visibility, not authority.
This is a new model of trust, trust without needing to surrender control.

When we step into cryptocurrency, we step into a world where the community becomes the record keeper and the network becomes the validator of truth. This understanding is the foundation upon which everything else in crypto rests.You cannot evaluate coins, make investments, or store assets securely if you don’t understand what the system is built on and why it works. Now, you do.

This chapter is the moment where cryptocurrency shifts from an idea into something real, logical, and beautifully structured. You now understand the engine that makes everything else possible.You are ready to learn not just what has value, but why so you can see the architecture of the future.

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Note to Our Investors:

To participate in any of our coin offerings listed below, you will need to download and use the Moonshot App. Please be advised that Meme Coins are highly volatile digital assets. Values can rise or fall rapidly, and investing should be done responsibly and at your own discretion.

Key Terms in This Chapter

Node: A computer that participates in maintaining and verifying the blockchain network.

Ledger: A record of transactions — in cryptocurrency, this record is stored digitally across the blockchain.

Block: A group of verified transactions bundled together on the blockchain.

Mining / Validation: The process of verifying transactions and adding them to the blockchain.

Network: The collective group of com

Pop Quiz: Test Your Knowledge

Answers

1. B

2. False

3. B

4. B

5. B

Workbook Activities

Instructions: Use the following prompts to evaluate any coin, including your own future investments. This activity is designed to support you as you continue to grow your knowledge and understanding of crypto and its use as a currency.

1. The Network in Motion

Prompt: In your own words, describe what a blockchain is. Don’t aim for precision aim for understanding.

2. Seeing the Difference

Prompt: Write one sentence comparing traditional banking to cryptocurrency networks.

3. Understanding Verification

Q. Why is it important that many computers verify a transaction instead of just one authority?

4. Trust Without a Gatekeeper

Prompt: Reflect on the idea that trust can exist without institutions.

Q. How does this challenge what you’re used to?

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