Complete guide Bitcoin and other digital currencies
Over the past few years, terms such as Virtual Currency, Digital Currency, and Cryptocurrency are increasingly heard. You may be more familiar with terms like Bitcoin, and ether. These are all cryptocurrencies that use blockchain technology to keep this currency and technology safe.
The public has also begun to be curious and find out to understand the value and method of use. Initially, of course, this trend felt strange and a bit scary. Just like when a credit card appears on the market.
At present, there are many types of cryptocurrency. A simple Google search from popular trends shows the beginning of growth and where it brings us.
Digital Currency vs Virtual Currency Vs Cryptocurrency
Before discussing Bitcoin and other digital currencies in-depth, know the difference between Digital Currency, Virtual Currency, and the following Cryptocurrency.
Digital currency can be defined as the currency stored and transferred electronically. Although the term digital currency has just been famous for the past few years, they have been around for a long time.
One example is e-gold is a digital currency that uses gold for transactions built-in 1996. In addition, there are also Liberty Reserve formed in 2006. This one system allows users to exchange dollars or euros into Liberty Reserve Dollars or Liberty Reserve Euros for 1%.
Unfortunately, they get a bad reputation because many people use these two services for money laundering.
Not only that but digital currency is also used by people who have a big income to manipulate taxes. In the end, both were closed by the United States government.
Virtual currency is a type of currency that was originally made for online entertainment. Things that distinguish between digital currencies and virtual currency are the value of these two currencies. Virtual currency does not have any value because they are not created for use in real life.
Examples of Virtual Currency are Points or Coins that you can when you win to play a game and you can exchange the points for certain features in the game. This is one of the initial forms of virtual currency.
A cryptocurrency is a form of digital money designed to be a safe and most anonymous currency. It is also a currency associated with the internet that uses cryptography, which is a process of changing almost unbreakable information, to track purchases and transfers.
Cryptography itself was first made during World War II. However, with the growing development of the digital era, Cryptography has become increasingly sophisticated with the element of mathematical and computer science theory to create a safe system for information exchange activities and money online.
How to work Cryptocurrency
Cryptocurrency uses technology that is decentralized so that users can make payments safely and save money without having to use their names or through the bank. They are distributed through a public book (Public Ledgers).
Public Ledgers is a storage area for all transactions confirmed since the commencement of the creation of Cryptocurrency. The identity of the Coions owner will be encrypted and the system will use other cryptocurrency techniques to ensure the legitimacy of recording.
The ledger ensures that the appropriate digital wallet can calculate the balance that can be used accurately. In addition, new transactions can be checked to ensure that every transaction only uses coins currently owned by users. Bitcoin, one of the cryptocurrencies, called this big book with the term blockchain.
The unit of a Cryptocurrency itself is made through a process called mining terms. Simply put, mining is the transaction confirmation process and adds it to the public ledger.
To add a transaction to the ledger, a miner must solve complicated computing problems (a kind of mathematical puzzle).
Mining is open source, which means anyone can confirm the transaction. The first miner can solve the puzzle add a “block” transaction to the ledger.
This method helps ensure that transactions, blocks, and blockchain work together to ensure that no one individual can easily add or change the block at will.
Once a block is added to the ledger, all transactions that correlate are permanent, and small transaction costs are added to the miner wallet (along with new coins made).
This mining process is valuable to coins and is known as a proof-of-work system. Users can also buy currencies from brokers, then save and spend them using a Cryptography wallet.
Bitcoin and other types of cryptocurrency
You must have heard the name Bitcoin, right? This is indeed one of the most famous cryptocurrencies. But Bitcoin is not the only Cryptocurrency currently available. Here are 7 types of cryptocurrency that are often seen on the market.
Bitcoin is the first and is the cryptocurrency that is most commonly traded until now. Bitcoin is not only a trendsetter, delivering the Cryptocurrency wave built on a decentralized peer-to-peer network, but also becomes the standard de facto for cryptocurrency.
Currencies inspired by Bitcoin are collectively called altcoins and have tried to display themselves as a modified or repaired bitcoin version. While some currencies are easier to reminisce than Bitcoin.
This one currency was developed by Satoshi Nakamoto in 2009, a mysterious figure who developed his Blockchain. Bitcoin has a market capitalization of around $ 45 billion in July 2017.
Launched in 2015, Ethereum is a currency token that allows Smart Contracts and Distributed Applications (DAPPs) to be made and run without downtime, fraud, control, and interference from third parties.
In 2014, Ethereum launched a pre-sale which was a very good response. The Ethereum application is run with a Cryptographic token specifically made for a specific platform called Ether name. Ether moves like a vehicle to move around the Ethereal platform, and most developers are looking to develop and run applications in ethereal.
According to Ethereum, it can be used to “codify, decentralize, secure and trade anything.” After the attack on Dao in 2016, Ethereum was broken into Ethereum (ET) and Ethereum Classic (etc). Ethereum has a market capitalization of around $ 18 billion in July 2017.
- Ripple (XRP)
Ripple is a real-time global settlement network that offers instant, definite, and inexpensive international payments. Ripple allows banks to complete cross-boundary payments in real-time, with transparency from end to end, and at a lower cost. Released in 2012, Ripple’s currency has a market capitalization of $ 6.3 billion.
Ripple consensus book – The conformity method – does not require mining. This is one of the features that deviate from Bitcoin and Altcoin. Because the ripple structure does not require mining, there is a reduction in the use of computing power and minimizes network latency.
Ripple believes that distributing values is a powerful way to provide incentives to certain behaviors and therefore currently plans to distribute XRP, especially through business development agreements, incentives to liquidity providers who offer more strict payment spreads, and sell XRP to buyers interested institutions To invest in XRP.
This Cryptocurrency has been used by banks including Santander and UBS.
Litecoin, launched in 2011, is one of the cryptocurrencies that follow Bitcoin. The cryptocurrency was created by Charlie Lee, an MIT graduate, and former Google Engineer.
Litecoin is based on the Global Open Source payment network that is not controlled by any Central Authority and uses “Scrypt” as proof of work, which can be translated with the help of Consumer Class CPUs.
Although Litecoin is like Bitcoin in many ways, it has a faster level of block generation and therefore offers a faster transaction confirmation. Besides the developer, many traders receive Litecoin. The total value of Litecoin is currently around $ 2.1 billion.
ZCash is a Cryptocurrency with a decentralized open-source launched at the end of 2016. ZCash offers transparency personally and selectively. Thus, ZCash claims to provide extra security or privacy where all transactions are recorded and published in a blockchain.
ZCASH offers users ‘protected’ transaction options, which allows content encrypted using advanced cryptographic techniques or zero proof construction of knowledge called ZK-Snark developed by his team.
- Monero (XMR)
Monero is safe, personal, and cannot be traced. The Cryptocurrency Open Source was launched in April 2014 and immediately received great interest from the cryptographic community.
The development of this cryptocurrency is truly donated and community-based. Monero has been launched with a strong focus on decentralization and scalability and allows complete privacy using a special technique called ring signature.
With this technique, a group of cryptographic signatures appears including at least one real participant – but because everything looks valid, which really cannot be isolated.
Dash (originally known as Darkcoin) a more confidential cryptocurrency. Dash offers more anonymity because it works on a decentralized master code network that makes the transaction almost unravel.
Launched in January 2014, Dash experienced an increase in the number of followers in a short span. This cryptocurrency was created and developed by Evan Duffield and can be mining using a CPU or GPU.
In March 2015, ‘Darkcoin’ was renamed Dash, which stands for Digital Cash and operates under the name of the Dash. Rebranding does not change the technology feature such as Darksend and Instant.
There is no other electronic cash system where your account does not belong to a company or someone else.
For example, PayPal. If PayPal decides for several reasons that your account has been misused, they have the power to freeze all the assets in your account, without consulting with you. To get your account back, you need to clean your name first.
With Cryptocurrency, you have a private key and the appropriate public key that forms your Cryptocurrency address. No one can take it from you (unless you lose it yourself, or live it with a web-based wallet service that eliminates it).
Overall, Cryptocurrency still has a long way before it can replace credit cards and traditional currency as a tool for global trade.
There are still many people who still don’t know Cryptocurrency. People still need to be supervised about it so they are interested in applying them to their lives. The business also needs to start receiving it. They need to simplify the registration process to be easy to start using it.
The appeal of Cryptocurrency in the future lies in the advantages of freeing you in full control of your money, with a fast and safe global transaction, and a lower transaction fee when compared to all existing currencies.
When used correctly and fully understood, Cryptocurrency can change our global economic system. For your business to grow and increase the number of customers you don’t forget to advertise through the Froggy Ads service, you can start by advertising your product, so that later you can improve visitors in your online business portal. FROGGY ADS is an online advertising service that can help you control all your product campaigns. Helps you target the targeting target you want and give you many choices to market your product.