A beginner’s guide to how cryptocurrencies work

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A beginner’s guide to how cryptocurrencies work
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From Bitcoin to blockchain, here's what to know.

lives inside a smart contract, for example, the artist can create a royalty schedule that accrues a fee every time the art is transferred on the blockchain.

You would borrow money using a smart contract, and you use it to do whatever you want to do. Typically, it’s used for arbitrage, where you buy and sell tokens at profit. Then, you pay back the loan, and all of that is contained in a single transaction. “The way that blockchains work, if you fail to pay back the loan, the whole transaction can just be aborted,” Juels says, “which means that it’s as though you never borrowed the money to begin with.

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