Cryptographic currency transfer is irreversible – no one can cancel, block, challenge or force (without a private key) to perform a transaction. However, participants in the transaction may voluntarily temporarily block their cryptocurrency as collateral or determine that the consent of both parties (or selected additional ones) is required for completing / canceling the transaction.
In order to understand the essence of the cryptocurrency , it is worth emphasizing its advantages and disadvantages.
- Code openness . Because of this, everyone can buy virtual coins. Despite the complexity of the process, many people still earn their living in this way.
- Anonymity . Unlike classic e-money, which is easy to monitor, it will not be possible to get information about the cryptographic currency basket owner. Only a purse number and limited data about the amount in your account can be obtained.
- Decentralization . Cryptographic currency is an independent monetary unit. Its issue is not regulated and uncontrolled transfer of funds to the account. It is this feature that attracts many internet users.
- Limited emission . Normally, a cryptographic currency is released in a limited amount, which makes it impossible to risk inflation due to excessive emission activity.
- Reliability . Hacking, forging or performing other similar manipulations with virtual currency will not succeed because it is securely protected.
- No warranties . Each user is personally responsible for their savings. There are no regulatory mechanisms, and in the event of theft, proof of everything and the return of money is unlikely to succeed.
- Instability . Cryptographic currency is unpredictable as it depends on current demand, which, in turn, may change due to changes in legislation, opinions of the public and professionals, and other factors. Because of this, cryptanalytic price fluctuations often occur.
- The risk of foreclosure . State structures cautiously evaluate cryptographic currencies. In many countries, restrictions are imposed on its use, and offenders may be punished or even imprisoned. At the same time, in several European countries, compromises are still being sought with the use of such money. Recently, Chicago CBOE Exchange began trading on Bitcoins, and in the future we can expect greater legitimacy for cryptoscopes.
- Loss of risk . The electronic money access key is a special password. If you lose it, funds in the wallet will become inaccessible.
- Due to the increasing complexity of block formation, the flow of virtual currency loses its relevance. The cost of purchasing equipment and paying for electricity simply does not cost you. This is why, in the past year, special companies with the necessary capabilities and offering Cloud-based content are gaining popularity.
The term “crypt currency” became popular after the publication of the article on bitcoins – the digital currency and the payment system. Bitcoin – Satoshi Nakamoto’s idea, but what kind of person or group of people hiding under this nickname is still not known. The Decentralized Payment System Nakamoto Concept is presented in 2008. October 31 Its main principles are: anonymity of all participants, fraud prevention and independence from controlling organizations.
Bitcoins network consists of interconnected transaction blocks. Each of the following blocks stores information about the previous one to be able to combine them into one chain and get information about all previously executed transactions (but not about bit-shop owners). The process of creating new blocks is called mining. In order for a new block to be displayed on the network, it is necessary to create a cryptographic signature. As a reward you receive new bikinis. By the way, their emissions are not an endless process. It is known in advance that they can create up to 21 million.
Initially, it was relatively easy to create blocks, and therefore individual masters managed to do this. Over time, complexity has grown, and now it requires a huge amount of computing power, so the mailers started to join the so-called poles and get new bitcoins in a collaborative effort.
Variety of cryptocurrency
At present, there are several thousands of different cryptographic currencies, but 50%. Of these, there are soap bubbles. The most popular and reliable are now:
Bitcoins are the most popular cryptographic currency and, figuratively, the genre’s ancestor. As a result, Bitcoins has created the foundation for all other similar currencies. The creator is considered an anonymous group of programmers who calls himself Satoshi Nakamoto.
It should be noted that the developers of BTC left an open code for their work, which allowed other professionals to create new types of cryptographic currency on this basis. BTC issue is limited to 21 million. (Currently this limit has not yet been reached).
Ethereum is a platform for decentralized online services based on Blockchain technology, based on smart contracts, as one decentralized virtual machine. This cryptocurrency 2013 was offered by the founder of Bitcoin Magazine at Vitali Buterin. It appeared on the Internet in 2015. July 30 Being an open source platform (open source), Ethereum greatly simplifies the implementation of blockchain technology. This explains the interest in this cryptographic currency not only for startup, but for large software developers, such as Microsoft, IBM and Acrons. Interest is also indicated by financial companies, including the Russian bank Sberbank.
Unlike other cryptographic currencies, authors do not limit Ethereum’s role to payments, but offers it, for example, as a means of exchanging resources or registering transactions through smart contracts. The capitalization of this cryptographic currency has already exceeded thirty billion dollars.
This money unit was created by developer Charlie Lee, who in the past worked for Google. Litecoin was released in 2011. The main idea behind this work is to become a silver analog in the digital financial market, given that well-known Bitcoin is often associated with gold. LTC emissions are limited to 84 million.
Zcash is the open currency crypt currency created by Zerocoin Electric Coin Company, which ensures confidentiality and selectable transaction transparency. Zcash payments are published in the public block chain, but the sender, recipient and transaction amount remain private. Zcash is a trademark of ZEC, not an official ISO 4217. Like Bitcoin, Zcash has a set stock of 21 million units. For the first time, the currency was announced in 2016. January 20
Currently, the best way to earn money from cryptocurrency is Bitcoin Digging.
SOURCE – Link