Category: Cryptocurrency

The Relationship Between Blockchain and Cryptocurrencies Explained

In the present milieu, there is a lot of confusion between the two words, “Blockchain” (BC)and “Cryptocurrencies” (CC). Till recently, when BITCOIN was the only form of Cryptocurrency in circulation, both the term BITCOIN and the Blockchain were often used as interchangeable. But a whole bunch of Cryptocurrencies appeared on the horizon, and BITCOIN was no longer the Lone Ranger. Blockchain now applied to many of the new Cryptocurrencies, and the uses quickly diverged from the pure money aspect. But a kind of relationship between Blockchain and Cryptocurrencies remained in the public’s mind, even though Blockchain was now seen to have a large number of applications, which were not related to Cryptocurrencies at all. To understand the reason behind this confusion, we need to study each term separately first. Only then, will we find The Relationship Between Blockchain and Cryptocurrencies Explained.

Blockchain

A Blockchain is basically a term from the library of accountants. ‘A chain of Blocks’ is formed by way of a distributed Ledger Technology. Every Block contains data and information that are verified and bundled together. These Blocks, after due validation are allowed to create an unbreakable chain of transactions and information, with other previous similar Blocks. Each Block of transaction, forming the Blockchain, is permanently recorded and set in the order of the transaction. This Blockchain accompanies the deal or product wherever it is next transacted.

Double Entry Bookkeeping has been used, by Accountants, for thousands of years, to ensure free and fair transactions between the two participants in a transaction. In this system, two separate Ledgers are maintained, by the two separate participants in the transaction that keep track of all debits and credits. This Double Entry Bookkeeping has been the biggest underpinning of our Financial System, since ancient times. In modern times, the Banking system works on this same principle, of maintaining separate Ledgers with the Bank and its Customer. Only the Customer and the Bank has access to this information. This is the basic concept of Blockchain, where the Ledger is distributed for public scrutiny, and becomes completely transparent. This has been around since the 90s, but was always found impractical for actual use.

But in 2008, a thunderbolt of a paper, by the then unknown Satoshi Nakamoto, related Block chain with a proposed new decentralized Cryptocurrency, called BITCOIN. Later in the year, this new virtual money was actually released on the Internet, and found an enormous reception amongst people, who had been struggling against governmental control and regulation of money. The BITCOIN was born.

Cryptocurrency

Any currency is a medium of exchange that can be used to carry out financial transactions, regulated by the use of money. Money as we have known it, is a centralized medium of exchange, the unit value of which, in comparison to other currencies, is determined by the regulation and control of individual governments and their central banks. The final value of that currency is determined the parity value against other leading currencies, as well as by the supply of that currency in the market. This supply is regulated by the government and its central bank, by printing as much money as required for that time. There is no upper limit of the quantity of money that can be printed, by any country, and is said to be determined by the needs of that country.

This is the way money has existed in human society, since the beginning, first as Coins, then as Paper Money and finally as Virtual Money in Banks. But Cryptocurrency has brought a complete revolution in our understanding of money. A Cryptocurrency is defined as a Digital or Virtual currency designed to work as a medium of exchange. Transactions are verified and secured by the use of Cryptography. The supply of Cryptography in a Database is pre-determined under fulfillment of specific conditions. Where all other previous attempts at creating a Digital Currency, like DigiCash and Flooz, during the 90s peak period, have completely failed, the new Cryptocurrency movement that came with the release of the BITCOIN in 2009 is proving to be a real success.

The Relationship

The new currency was called “Crypto-currency” for a reason. The failed previous new currencies used a Trusted Third Party to verify and facilitate the transactions. But this was only partial Decentralization, and did not prevent the many ills already incumbent on “Fiat Money” (as traditional money was now being called). There were a whole host of features of Crypto-currencies that were truly novel, such as P2P (Peer To Peer) transactions, a total limitation to the number of BITCOINS which could ever be created or released, along with a time-span, and the Crypto Files that were used as Currency in the new dispensation. This was the addition of the Blockchain, which rendered all transactions completely transparent, and further, free from double payment.… Read On...

Significant Cryptocurrencies Other Than Bitcoin

Cryptocurrency is used as a digital medium of exchanging money so it can be called virtual money. It allows secure online payments in terms of digital or virtual tokens. It is a system which is secured by cryptography that ensures not to counterfeit this that means can not be double spend. Because of this it makes financial transactions secure. Cryptocurrency is widely used outside the government and central banking systems and being exchanged as a virtual money over the internet around the globe. Cryptocurrencies are used as crypto tokens which are mainly functional in decentralized applications for making online payments. But in some countries it is completely banned to use or trade cryptocurrency so its legal status varies in all the countries worldwide. In the cryptocurrency system it is not needed centrally authorized, rather it depends upon ownerships of their units. As it is cryptographically secured so the ownership depends on that and new units can only be generated by the system depending on their origin and transactions. So the cryptographic system works as a blockchain for several financial transactions with distributed unit technology. This system for applying transaction fee works on the ratio of capacity of network supply at the transaction time and fastest demand of payment of the cryptocurrency owner.

Bitcoin:

Bitcoin was the first cryptocurrency that was created in the financial market by a developer Satoshi Nakamoto. It is a decentralized cryptocurrency which was developed in 2009 and used at first in the decentralized markets as an open source software transaction. Bitcoin tokens are composed of a chain of letters and string of numbers that is created by a mathematical algorithm and used as a transaction key. This key is the address at which other users can send payments, so it works as a bank account address number for the users. So this is called as a public key for a dealer to pay online into another bitcoin user’s account. Despite this there is a private key too which is only used by its owner for his or her other bitcoin transactions. It works as an ATM number which is protected by a pin code and that’s why it is dented as a private key. It is guarded by the user’s password and not any other bitcoin holder can use it. Beside this it also have a bitcoin wallet which is used for transmissions and with its help bitcoin users can see the ownership details of their account. It encourages bitcoin or cryptocurrency transactions and works as a digital or virtual wallet. Bitcoin includes instant trading or online payments and the users also get bitcoin rewards for their multiple tradings in the market.

Other cryptocurrencies:

Rather than Bitcoin which was the first and most popular cryptocurrency in the trading market there are more cryptocurrencies introduced in the next few years.

Litecoin, Cardano, Peercoin, Ethereum, Namecoin are the names of few of them. After the dominated market of Bitcoin, in 2011 Namecoin was launched and soon after that Litecoin was created. They both are also trading in the financial market and after Bitcoin they are the most used and successful currencies which took over the decentralized market. Then in 2013 Peercoin was created and it was the first cryptocurrency which included proof of the work in the trading hybrid market.

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The adult industry embraced Litecoin with top adult dating platforms and webcam sites accepting the cryptocurrency and spreading its legitimacy. Litecoin is famous for its fast and very low cost payments in the cryptographic world. It is peer to peer virtual currency which works as an open source transmission network and gives a near zero cost trading transmissions as well as being famous for its instant payments.

Just like Litecoin, Peercoin is also a proof of work and peer to peer cryptocurrency that was created in 2012 by Scott Nadal, a Scottish author. Peercoin is one of the efficient currencies that enables to connect online networks to the blockchain security process and this feature enables its popularity because it can connect with many security builders to sustain its security for a long period of time. It has the quality to share the blockchain with the co owners and can discover new chains or blocks so that they can collectively own the wallet, so it is very famous among the stakeholders.

Apart from these you can find many other cryptocurrencies like, Dogecoin, Monero, Dash, Potcoin, NEM etc. which are also ruling the trade market beside Bitcoin.… Read On...

What is Cryptocurrency?

Cryptocurrency is a type of digital currency that allow people to make payments for goods and services without using net banking, credit card, or debit card. It is an internet-based medium of exchange enabling a person to send money using cryptographical functions that can save more money. Another thing is that it provides ways to make transfers with minimal processing fees thereby showing ways to experience peace of mind. Moreover, it gives ways to avoid the steep fees charged by financial companies that can help to save money. Apart from that, it allows users to prevent fraudulent activities effectively to get peace of mind.

How does cryptocurrency work?

The cryptocurrencies use a technology called blockchain, a decentralized system which records transactions and balance. It has a public ledger where everything gets started and stored. All users of a given cryptocurrency can access to a ledger whenever they want. A miner is the only person who can confirm the transactions and they will be added to the database soon. The miners will get reward with a token of the cryptocurrency. They play a key role in the cryptocurrency system because they provide ways to solve unwanted problems in the transaction process.

Knowing more about mining

Cryptocurrency utilizes mining concepts allowing users to confirm transactions. Mining is open-source so that anyone can use the same with ease. Everyone can become a miner and he/she should solve some cryptographic puzzles in order to add transactions. Since the mining process gives more value to the coins, it is necessary to learn about the system in detail for gaining ideas. This will help a lot to focus more on the goals thereby showing ways to earn more revenues. Beginners should enhance their skills effectively because it gives methods to obtain optimal results.

What are the advantages and disadvantages of cryptocurrency?

The primary advantage of cryptocurrency is that it is easy to use because it requires only a device that is able to access the internet. It is possible to use cryptocurrency without any limits internationally. Apart from that, cryptocurrency charges only a small amount of the transaction thereby giving ways to lower operation costs. Users can even make unlimited truncations faster when compared to other payment systems. Some of the disadvantages of cryptocurrency include lack of knowledge, strong volatility, unable to reverse the payments, high investment risks, and so on.

What is a cryptocurrency coin and token?

A cryptocurrency coin is an encrypted digital currency meant for payments. In fact, it is a unit of value that operates on its own blockchain that can help store value and pay for services accordingly. For example, Bitcoin is a cryptocurrency coin that is well-known in various parts of the world. At the same time, a token is a digital asset meant for holders to take part in some type of activities. EOS is a popular token that offers values to a buyer.

How to invest in cryptocurrencies?

Anyone who wants to invest in cryptocurrencies should choose an exchange first after making complete research. There are several exchanges available in the markets, it is necessary to select the right one among them. It is advisable to get a wallet after buying a coin. Software wallets and hardware wallets are the two types available for investors enabling them to generate more revenues. Investors who want to engage in any active trading can choose the software wallet whereas a hardware wallet is an ideal one for storing currency in secured ways. Investors should diversify their crypto portfolio which helps to get protection from losses.

How to create a token?

The process of creating a token is an easier than creating a coin because there is no need to create a new code or modify an existing one. In fact, one can use a standard template from platforms like Etherum which is a block-chain platform. Users can create tokens with the templates meaning them to store different types of tokens in one wallet. Etherum is the best platform for those who want to create a token in simple steps thereby showing ways to accomplish goals significantly. It is a wise one to consult with industry experts before putting money in cryptocurrency investments for ensuring more gains. … Read On...

History of Bitcoin

What is Bitcoin?

Bitcoin is the new currency that was found or created in the year of 2008. Bitcoin is the crypto-currency, which is also known as the decentralized digital currency, which doesn’t have a single administrator or even central bank that is the transaction was done without having a middle man. Using the cryptography, the transactions are verified with the help of network nodes. The block chain is a public distributed ledger which records the transaction details. Satoshi Nakamoto invented Bitcoin and started it in 2009.

Satoshi Nakamoto

He authored the white paper bitcoin and created as well as deployed the original reference of bitcoin. The source code of bitcoins was actually open-source software when it was released. The bitcoins were specifically created as a reward of the process that is known as mining and these bitcoins were used instead of every other currency, services as well as products of all countries. Bitcoins are used for many purposes that include shopping for furniture over the Overstock as well as Expedia and the best thing is, one can buy Xbox games, but many of the agencies who were regulatory did issue many investor alerts in the matter of bitcoins. One was able to become rich by trading it and also the prices or values of bitcoins were skyrocketing in the year of 2017. One is able to buy merchandise anonymously, which can be done using bitcoins. The bitcoins are not tied to any of the countries or is not subject to any regulation. The advantage of investing bitcoins is that it is cheap as well as easy for international payments. The use of bitcoins doesn’t charge any fee or money for the use of credit card and that is the reason why small businesses at times preferred it more. Later on, people invested in bitcoins in a large scale thinking that the values or prices of bitcoins will get high. The transactions of bitcoins were actually recorded in a public log that had the ID of the wallets as it never revealed the name of the sellers but did contain the name of the buyer. The transactions were kept private and thus it helps them to sell or buy anything which doesn’t get to trace them back.

At a later stage, bitcoins were criticized too, because of the illegal transactions, price volatility, thefts from the exchange as well as its high electricity consumption. Early on bitcoin was embraced by gray market companies and accepted a legitimate form of payment from adult dating sites and fuck sites which didn’t necessarily help its public relations image at the start. However, as time passed many more well known larger companies began to embrace bitcoin as a legitimate currency. Still, there was and continues to be a lot of skepticism and criticism related to bitcoin. The criticism included many economists that included a lot of Novel Laureates, who characterized bitcoin as a speculative bubble.

The history of bitcoins that will amaze you:

Okay folks, now as you know what are bitcoins and also have a pretty little idea about its usage as well as the name of the inventor or inventors. So now let’s have a look at what is the history of bitcoin and why was it useful.

In the year of 2008, August 18 bit coins were registered with its domain as “bitcoin.org”, then in the same year on 31st October a paper that is linked and was authored by Satoshi Nakamoto (the name of the people or group of people who invented bitcoins) which was titled as “ Bitcoin: A Peer-to-Peer Electronic Cash System” which was posted or uploaded with the help of a cryptography mailing list. In the year of 2009, January Satoshi Nakamoto implemented or invented bitcoin as an open-source code software. The thing that will draw your attention is that the founder or inventor of bitcoins remains hidden or anonymous. Genesis block means the 1st block of the chain that was created or invented by Satoshi Nakamoto over the bitcoin network, in the year of 2009 and the day was 3rd January. The 1st transaction of the bitcoins and the receiver was found to be Cypherpunk Hal Finney that helped in creating the very first proof of work that was reusable and was found in the year of 2004. The Cypherpunk Hal Finney 1st downloaded the software of bitcoins on the day of release and the 1st 10 bitcoins were sent to this on 12th January 2009. The other cypherpunks were actually the creators of the bitcoin predecessors. The analyst of block chain estimated that one million bitcoin was estimated or mined by the Satoshi Nakamoto. The blockchains nearly disappeared in the year 2010. In the year of 2013 and month march, the block chain got split temporarily forming 2 chains that are independent and does have its own new set of rule and the reason behind this was the bug in the version of 0.8 of the bitcoin software.… Read On...