What are crypto assets?

Start with one useful idea: some digital assets are recorded on shared computer networks, where many participants follow the same rules for checking records.

Key idea: shared digital recordsNext: wallets and exchanges

Three example blocks linked in order. Each later block contains a reference to the one before it.

Teaching diagram only. The labels and hash-like strings are examples, not real transaction data.

The idea in plain language

Think of a shared notebook

A blockchain is one kind of shared digital ledger. You can imagine a notebook that many computers keep in sync. When a new set of records is accepted under the network's rules, it is grouped into a block and linked to earlier blocks.

That link helps the network detect changes to older records. Participants still need to follow the network's rules and check that a transaction is valid. The exact process differs across networks.

Bitcoin, coins, and tokens

Bitcoin is the name of a specific crypto asset and network. A token is a digital asset created or tracked using another network's rules. People sometimes use "coin" and "token" casually, but the technical meaning depends on the project.

Keep in mind: A blockchain record does not tell you whether an asset is useful, safe, or fairly priced. Those are separate questions, and prices can rise or fall sharply.

Three things to remember

Shared recordA network records activity using its own rules.

Different assetsBitcoin and tokens can work in different ways.

Not a promiseThe technology does not guarantee value or returns.

Pause and check

In your own words, what does a blockchain help a network keep track of? If you can answer "records and transactions," you have the basic idea.

Back toCourse overview Lesson 2: Wallet or exchange?

Learning note: This material is for general education and is not financial, investment, or tax advice. Crypto assets are risky and can lose value.