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Cryptocurrency

What is Cryptocurrency? Is it For Real?

A Cryptocurrency, or cryptocoins, is a group of computer code that is designed to operate as a decentralized medium of currency exchange in which private coin ownership details are recorded in a public ledger that is accessible by anyone who accesses the system. There are several different forms of cryptocoins, including Digital Cash, Pecunix, Peercoin, Creditbit, and Feathercash. The first three all share similar characteristics in that they are ” cryptocoins “, but each is unique in its own right. In this article, we’ll discuss what is needed for a “anian” (decentralized) cryptocoin – or any other type of cryptocoin for that matter – to be accepted and used by the general public.

The first and most important characteristic of any good Cryptocurrency is its market capitalization. Market capitalization is how much money a typical investor would be willing to pay for a single coin. As you may not know, each coin is issued with a pre-determined number of troy ounces. That means that a small change in the supply (for instance, the sudden increase in the number of Litecoin being printed) would have a profound effect on the value of a particular coin – and, consequently, the amount of money people would be willing to pay for it.

Next, if Cryptocurrency was ever to gain broader use by the general public, it would need to adopt an open source protocol. This means that the Cryptocurrency developers should be able to make their entire software open to the public, so that anyone interested in using the system can do so without the need for a trusted third-party. As an example, with Peer Cryptocurrency, the developers are allowed to distribute their code to anyone who asks for it, without worrying that they will steal their intellectual property or trick them into compromising the central authority (the Peer to Peer network). The central authorities must be assured that their entire distribution of Cryptocurrency is consistent and reliable, otherwise users will be very likely to start creating their own decentralized forms of Cryptocurrency.

There is one other feature that makes certain types of Cryptocurrency very different from regular forms of money: the supply of Cryptocurrency is entirely controlled by the individuals who created it. Unlike traditional paper money, which has to be “printed” out by governments or other financial institutions in some way, Cryptocurrency is technically “peer-to-peer” – meaning that there is no such thing as a central bank. While technically true in a few respects, this lack of a central bank creates significant privacy concerns, particularly because no single entity can control the distribution of Cryptocurrency. As such, Cryptocurrency is extremely vulnerable to manipulation and even used for illegal purposes, as some central banks have done. This is one reason why most Cryptocurrencies are not made available to those outside of a small community – although with technological improvements, this might change in the near future.

One particular type of Cryptocurrency that is gaining popularity right now is the “blockchain technology” behind Virtual Currencies. The main advantage of the blockchained approach is that it completely abstracts the trust aspect of traditional transaction processes. Rather than relying on a third party organization, which can add extra fees to any given transaction, a “blockchain” instead acts as an agreement between two or more parties. Each transaction then only requires the confirmation of another human being – called a “halting transaction.” This method prevents any middleman from taking part in the transaction, and therefore greatly increases privacy and lowers costs for all involved.

One of the biggest advantages to the Cryptocurrency market in the future lies in the use of “crypto units.” Unlike traditional money, which has been held in a bank or other entity controlled by a government, “crypto units” are digitally encoded files which can be easily stored on the hard drive of anyone who wants to hold them. This makes Cryptocurrency much more resistant to tampering – as governments and others would have no way of compromising the value of Cryptocurrency if they could gain access to the information which underpins it. However, the encoding process itself means that it may take years before a Cryptocurrency is stored in this way. Additionally, in order for Cryptocurrency to be valuable, it should retain some value over time – which will make its purchase on the open market more difficult as well.

Author

Peter Conley

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