Site Loader
Rock Street, San Francisco

List some of the main Cryptocurrencies:

Bitcoin: (BTC), born in January 2009, based on the proof-of-work protocol ,
is the first Cryptocurrency for value, the first to be known in bulk, and to be
recognized as a form of payment from various Internet sites, including those of
the deep web .

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!


order now

Litecoin: (?), is the second largest virtual
currency. Created in 2011 by an MIT graduate and a former Google engineer (
Charlie Lee ), it is based on a global point-to-point payment network that
enables instant , near-zero cost payments anywhere in the world. Litecoin is a
global and open source payment network that is completely decentralized and
without central authorities. Also based on complex mathematical operations,
Litecoin says it offers faster transaction confirmation times and improved
storage efficiency over its main rival, Bitcoin.

Dashcoin: (DSH), is a more secret version of Bitcoin. Although Bitcoins are
anonymous when compared to traditional money, there is still a record of all
the transactions carried out in an accounting book (or “blockchain”)
that can reveal a large amount of information. Dashcoin offers more anonymity
because it works in a decentralized master code network that makes transactions
almost impossible to follow. Launched in January 2014, it was created and
developed by Evan Duffield under the name of Darkcoin, although it has changed
its name.

Peercoin: (PPC), (known to
some as PPCoin, Peer-to-Peer Coin) was created by software developers Sunny
King (pseudonym) and Scott Nadal. Available since August 2012, it was the first
digital currency to introduce the Mintage Test to secure the network. Although
it also uses the Proof of work (using hash), since the hash difficulty
increases over time, users are rewarded with coins with the mintage because, in
the long run, this will mean that the peercoin network will consume less
energy.

Dogecoin: (DOGE), was
launched in December 2013. Created by Billy Markus and Jackson Palmer, it is
based on the Bitcoin protocol, but with modifications. It ensures having a much
shorter coin creation time than other currencies and there is no limit to the
dogecoin number that can be produced.

Primecoin: (PPC), is an
altcoin with a difference. Developed by Sunny King (who also developed
peercoin), his proof of work is based on prime numbers, which is different from
the usual system used by most virtual currencies , based on the Bitcoin
framework. It is the search for special long strings of prime numbers, which
are of great interest in mathematical research.

What is Bitcoin?

Bitcoin is the name of the first electronic money, The word “Bitcoin” is
formed in English from “bit” – the minimum unit of information and
“coin” is a coin. Following the rules of Anglo-Russian transcription
, this term should be translated into Russian as “Bitcoin . ” Such
writing uses the official site bitcoin.org , Bitcoin Wiki , Wikipedia ,TSB
RFand other resources. Until now, the widespread version of ” Bitcoin
” came from the first translation of the wallet interface based on direct
transliteration.

Bitcoin is the most important currently on the online market.
The celebrity of the cryptocurrency is mainly due to the ups and downs that its
value has had in recent times, reaching considerable figures, but in addition
to its record is its reliability to make it appreciated by traders and not only
. This type of currency is an alternative to traditional currencies, mainly
because it is only used online and is not controlled by central banks and
governments, but only depends on the transactions that determine its value.

 

Its operation takes place through a database distributed
among various computers on the network on which the various transactions are
noted, all verified and regularly updated. The network can therefore be defined
as peer-to-peer as the torrent structure. Combined with the addresses of each
person working with bitcoins, there are encrypted keys, so as to protect the
investor and record the various transactions. There is also a personal password
to protect access to the online account, called a wallet, in which the bitcoins
are kept. The technology used is called blockchain precisely because maximum
transparency allows us to keep track of transactions without jeopardizing
security. The information on the exchanges are divided into blocks and are
resolved, for the purpose of registration, with a procedure called mining. To
perform the task are people who explore the database obtaining a reward in the
form of commission, which repays the calculations made. The payment is made
partly with bitcoins and partly with traditional currencies.

 

 

Bitcoin, the pioneer

Bitcoin is for many the first, and most famous digital
currency, and perhaps most people come to mind when we talk about virtual
currencies. Fame has not come alone. Perhaps one of the main reasons for its
success is the fact that it has an accounting book of all the transactions that
are carried out and that are verified from the cryptographic point of view.
This book, in addition, does not belong to a single organism or person, but is
maintained jointly by the users of the currency. The Bitcoin Foundation
organizes a large part of the activity around this currency.

 

Another peculiarity of Bitcoin is that it was a pioneer in
having a decentralized currency system, in which all its members are equal and
where the currency is not issued per se, but rather advanced equipment is used,
using equations based on difficult mathematics. , they issue the currency.

 

 

 

 

 

The Use of
Bitcoins

Satoshi Nakamoto invented the most used Cryptocurrency in the
online market. It is not his real name, but a pseudonym because the author of
the bitcoin wanted to remain anonymous, giving his creation to the world. The
many researches made by journalists led to Craig Steven Wright, who admitted to
being the creator of Cryptocurrency. Beyond who gave the world a new product
for commercial exchanges in the digital world, what matters most is to
understand its use.

 

First of all, we need to rely on secure websites that allow
us to create wallets, ie virtual and protected portfolios in which to keep
electronic money. This is an account to be accessed with confidential
credentials and to be matched with an address for transactions. It works like a
“bank account”, the funds are deposited and send and receive
bitcoins. For each payment made, however, commissions must be paid and the
speed of the operation depends on the verification carried out by the miners,
those who carry out the mining. To buy Bitcoin and / or sell electronic money
you can easily refer to the many exchange present on the internet. These are
brokerage services that allow you to take advantage of digital currencies for
your investments or for exchanges, obviously for a small fee.

 

Advantages
and disadvantages of Cryptocurrencies:

 

Benefits
of electronic currencies

Cryptocurrencies
have a number of advantages that make many people in the world already using
them.

o    The payments
made in Cryptocurrency are formalized instantly. In addition, there are no
intermediaries. Transactions are made from one person to another.

o    Making
payments using Cryptocurrencies is very simple. All you have to do is scan
the QR code of the person who is going to make the payment and indicate the
desired amount, so it can be done from any mobile phone with Internet. In
addition, they can be used from any country.

o    The taxes
included in each transaction made in virtual currencies are minimal. In
addition, the fees to send money abroad are also minimal.

o    The
crypto currencies are decentralized so that no country or institution can
manage to control them.

 

 

 

 

 

Risks of Cryptocurrency

In spite of everything,
we must bear in mind that there are a number of problems or problems related to
digital currencies .

o   
It is necessary to have
Internet to access them. In the contract case, we can not take our money or manage
it in any way.

o   
To be able to generalize
the use, it is necessary that a particular currency be extended significantly.
This is what happens, for example, with bitcoin, which is used by many people
in the world. In the opposite case, there are many people with different
currencies, which generates difficulty for their assiduous handling.

o   
One of the threats of Cryptocurrency
is quantum computers that, although not yet on the market, present serious
risks for this type of electronic currencies. The processing capacity of these
machines is such that it threatens systems that use cryptography as a security
method.

o   
The price is only fixed by
the law of supply and demand. This can cause sharp increases in prices but also
large falls, unlike countries that have currency reserves to control that it
does not fall.

Post Author: admin

x

Hi!
I'm Eunice!

Would you like to get a custom essay? How about receiving a customized one?

Check it out