The financial world is changing at a pace never before seen in history. These new instruments are being developed and made available to anyone willing to explore the space and to serve a wide variety of needs. Investment in Decentralised Finance (or DeFi) has spiked to 1.5bn USD in assets locked. These assets are in the form of digital tokens called cryptoassets and have many of the same properties as those found in more familiar financial markets.
This is all happening against a backdrop of traditional financial markets operating in a very strange state. Across the globe interest rates on savings accounts are dismal or negative, and the bond market is turning negative on a regular basis. Inflation is eating away at everything.
In broad terms DeFi products and services look to achieve similar outcomes to those that exist today in the traditional financial world. Common examples include stable currencies, collateralized loans, bonds, interest rate swaps and so on. The key difference is that they do not rely on institutions to act as trusted third parties. All the trust lies within the complex, but transparent, code and mathematics that make up the blockchain and smart contracts knitting the ideas into the technology.
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2 Prediction market
Our reputation-based prediction markets to deliver real-time signals covering future events and milestones in the blockchain and crypto space.
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I’ll need a quick reminder about blockchain and smart contracts…
Blockchain technology relies on digital tokens, formally called cryptoassets, which can change ownership in a trustless manner. The ownership is tracked using a special kind of distributed database so that everyone can agree on who owns what (with varying degrees of privacy).
The most advanced blockchains support smart contracts which allow cryptoassets to be programmable, meaning you don’t need a huge middle or back office to settle, clear and manage breaks. Smart contracts should make the most complex of financial products as easy as sending an email.
Ethereum is by far the largest blockchain-based smart contract ecosystem in the world and is currently undergoing a significant parallel upgrade to its core infrastructure to transition to Ethereum 2. Many of the largest DeFi markets operate using Ethereum as their platform.
Satoshi’s Treasure, the alternate reality scavenger hunt for $1 million worth of Bitcoin, $BTC▲4.26% has just released its 14th clue. Best part is: it’s loaded with $70,000 in Bitcoin.
“[Three] keys and additional $70,000 will be rewarded to hunters who solve the puzzle,” reads a notice on the game‘s website.
There are curious things to note here, besides the dope prize.
This clue is the “Zero Knowledge Key,” and it comes with a message: “Don’t be so SNARKy”. (Hint: budding cryptocurrency project Zcash utilizes technology known as “ZK-SNARKs” to keep its transactions relatively private.)
Satoshi’s Treasure began back in April. Inspired by Ready Player One, players are urged to work together in teams to solve puzzles that often involve interacting with real-world objects and locations across the globe.
The game’s organizers split private keys to $1 million worth of Bitcoin into 1,000 “shards.” The first individual (or team) to collect just 400 of them will immediately unlock the full prize.
Hard Fork has reached out to those behind Satoshi’s Treasure to confirm exactly how this additional $70,000 Bitcoin prize will be paid out, and will update this piece should we receive a reply.
PlanB is revising its stock-to-flow model shortly before Bitcoin Halving 2020
PlanB a popular Twitter user was featured in the May 1 issue of the podcast with Peter McCormak, another crypto-influencer. There he described the path of the oldest cryptocurrency. He further said that Bitcoin may not even be an asset anymore, but something much larger. PlanB is convinced that the Bitcoin price will one day be around $1 million.
“This thing [#bitcoin] is not a toy anymore, and it’s maybe not an asset anymore as well. It is going to be much bigger than that.”
The stock-to-flow model states that there is a connection between the hardness of an asset and its price. The hardness is calculated as follows: the amount conveyed/increase in one year.
Example Bitcoin: 18,359,500 coins are currently being funded. Each year, block reward * block per year = 12.5 * 6 * 24 * 365 = 657,000 BTC are added. So the hardness is ~ 28. The hardness increases linearly with the same delivery rate. With Bitcoin, the hardness also doubled by the Bitcoin Halving at once, because the delivery rate is halved.
PlanB shows in a logarithmic chart of the post how the market capitalization of Bitcoin has correlated with its hardness in the past. In the revised version, he draws the self-defined development stages of the cryptocurrency. In addition, he included gold and silver in the calculation of the regression line and was able to improve their accuracy and their degree of determination (R ^ 2).
Bitcoin Price to pump massively
The possibility of Bitcoin price to pump massively is high, reflecting the halving event that would help the assumption. As we know the fundamentals of the law of Supply and Demand, it is a point that the supply of Bitcoin would be decreased deeply and its influence in the position of Bitcoin is foreseeable. As the supply declines the more eminent the demand it would get so, every thought and perspicacity that tells you to stock or store Bitcoin is good before it is too late.
Every four years after mining of 210,000 blocks, the Bitcoin halving development occurs, wherein the amount of BTC created rewards to the miners will be halved, i.e, cut the current one by 2, which essentially will decrease from 12.5 to 6.25 BTC. Bitcoin halvings that have occurred before perpetually revealed far-reaching mountains, hence the equivalent is assumed of the upcoming one.
This post may contain promotional links that help us fund the site. When you click on the links, we receive a commission – but the prices do not change for you! 🙂
Disclaimer: The authors of this website may have invested in crypto currencies themselves. They are not financial advisors and only express their opinions. Anyone considering investing in crypto currencies should be well informed about these high-risk assets.
Trading with financial products, especially with CFDs involves a high level of risk and is therefore not suitable for security-conscious investors. CFDs are complex instruments and carry a high risk of losing money quickly through leverage. Be aware that most private Investors lose money, if they decide to trade CFDs. Any type of trading and speculation in financial products that can produce an unusually high return is also associated with increased risk to lose money. Note that past gains are no guarantee of positive results in the future.
Selling Bitcoins to a Paypal account is a popular way of cashing out Bitcoin.
Two of the most popular exchanges/brokerages in the world support this method, making it an attractive choice.
Depending on where you’re selling Bitcoins to, there may be lower fee options than Paypal. For more information on this, please check out our full guide to selling Bitcoins.
1 Bitroz Exchange
Bitroz exchange allows you to conveniently exchange your Bitcoin Ethereum Litecoin for Paypal cash and receive the funds almost instantly in your PayPal Skrill And Bank account. The best part? Its Easy Secure And Fast non custodial exchange You dont need to submit any documents kyc to exchange your Bitcoin on Bitroz.
All transactions are processed securely and there’s no limit on how much Bitcoin, Crypto you want to exchange for paypal cash
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we don’t have any hidden charges. You can always trust our services. Our customers or clients keep coming back because of the seamless services that they enjoy on our website.
Best rates: We offer the best rate in the market. You will get exact rates from the market when you sell your bitcoin to us. We usually charge very low fee from the average market rate to attract customers. We optimize many of our processes to reduce the transactional charges which bring about offering the best rate in the market. You can always trust exchanging your bitcoin with us.
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Coinbase is based in San Francisco, United States but serves customers all around the world including Europe, Canada, and Australia.
In order to begin selling Bitcoin for fiat currency, you’ll need to move coins from your wallet into the exchange. This can be done by locating your local deposit address.
Please make sure to send Bitcoin to a Bitcoin address, and no other coin.
Once you have a balance in your Coinbase account, you’ll want to sell them for fiat currency inside your exchange fiat wallet account.
Coinbase gives you two options for this:
Coinbase Pro (Exchange)
Coinbase Pro will incur much lower fees, although it’s fairly difficult to use for beginners.
Once the selling process is done, look for the withdrawal option on Coinbase/Coinbase Pro. Select Paypal and you will receive the respective balance in your wallet!
Please note that Paypal charges around a 3% fee plus $.30 so the amount may appear differently in your Paypal account!
Once this is done, you’ve successfully sold Bitcoins to Paypal!
With just over two months to go and BTC still struggling under $9K, will Bitcoin’s halving really affect its price?
A QUICK RECAP OF THE BITCOIN HALVING
The Bitcoin halving is currently less than 10000 blocks away, as tweeted out by Bitcoin core developer and educator Jimmy Song. The majority of people in the space anticipate it will have a major impact on bitcoin’s price. This is for several reasons.
Just as the supply of bitcoins is limited to 21 million, the mining reward for generating new blocks is reduced every four years or every 210,000 blocks. It is cut in half, hence the term “halving” (or halving). This will carry on until all the 21 million bitcoins are released into circulation.
With the capped supply, Nakamoto ensured that Bitcoin, unlike fiat currencies will never lose its purchasing power over time. In fact, a capped supply dramatically increases BTC’s odds of steadily increasing in price in the future.
This rise in price is what allows mining bitcoins to still be profitable to miners even with a reduced reward over time.
The mining reward is made up of the block subsidy and the transaction fees. The subsidy consists of newly generated bitcoins and is currently the largest part of the reward. The other part is made up of transaction fees paid by all the transactions included in the block.
The current reward is 12.5 bitcoins plus TX fees for the discovery of a new block. After the next Bitcoin halving the mining reward will be cut in half to 6.25 BTC. This will carry on until all bitcoins are released, at which point the network should be sustainable on transaction fees alone.
THE LAST TWO BTC HALVINGS
The first Bitcoin halving happened on Nov 28, 2012, when the mining reward was reduced to 25 bitcoins. At the time of the halving, the price of BTC was approximately $11. Over the next year, Bitcoin would see its price increase to as much as $1,135 on Nov 29, 2013. A dramatic hike of 10,218%.
The second Bitcoin halving occurred on July 16, 2016, when the reward was reduced to its current rate of 12.5 bitcoins per block. This time around, the price did not react immediately.
In fact, after the last halving, BTC was locked in a rather dull trading range of between $500 and $800. This lasted all the way through to the end of the year. Then, on Dec 21, 2016, the price penetrated $800 and the halving rally was underway at last.
Over the next 12 months, an explosive bull market ensued with Bitcoin reaching its all-time high os $19,862 on Dec 18, 2017. A 2,827% percentage hike. So, based on these past results, it’s not surprising the community is getting excited.
WILL THIS HALVING SEND BITCOIN PRICE SOARING?
Many prominent analysts in the space expect the halving to have a dramatic impact on bitcoin’s price. These include Fundstrat Managing Partner Thomas Lee, who sees bitcoin’s price more than tripling in 2020.
Other major influencers including Morgan Creek Digital’s Anthony Pompliano have frequently tweeted out their excitement over the upcoming event.
195 days until the next Bitcoin halving.
Less than 3 million Bitcoin left to mine.
Hash rate keeps hitting all-time highs.
We are watching the strongest computer network in the world continue to get stronger and stronger.
It’s a game of supply and demand. The halving reduces the supply.. so if demand stays the same price will have to go up.
February’s price decline was a decisive blow to the Bitcoin bulls. If demand decreases and prices dwindle, the mining reward could leave miners struggling and even force them out of business.
As February comes to end #Bitcoin dramatically plunges to under $9,000 per #BTC, having hit $10,000 earlier this year. With such a rapid decline in price and the upcoming #halving in May 2020 all eyes are on #cryptocurrency markets next move.
Even though bitcoin maximalists like Max Keiser are calling for a $400K bitcoin soon, it’s quite unlikely that bitcoin will see a dramatic price increase the likes of the previous two halvings.
In fact, there was a large reduction in terms of percentage gains from 2016 halving compared to 2012–some 72% less.
So let’s make an educated guess. If we take in the assumption that the rally will be 72% less than the 2016 halving, then we can expect BTC to make a substantial gain of 797% this time around.
Based on a BTC price of $9k on the next halving, we could expect to see its price reach as much as $71,730 in about 12 to 18 months from May 2020. This means that BTC price may not see any dramatic action for at least a year after the next halving.
Of course, these are just predictions and it’s impossible to predict the future direction of any speculative asset. But, with the information at hand, it looks likely that 2021 will be a good year for BTC price.
Will Bitcoin’s price react positively to the upcoming BTC halving? Let us know your thoughts below!
It’s a sad fact, but there are not many projects in the blockchain industry that really work on creating great products. What’s even worse than that is that there are even fewer that really engage their followers in what they’re doing. Today, we’re looking at one project that has managed not only to release a fully functional product in the few months since fundraising, but also does a great job in keeping its audience engaged. Meet Akropolis, a project aiming to provide businesses and their users with decentralized financial structures (DeFi), helping them become less dependant on governmental entities in the process.
Building a DeFi Economy
Akropolis is all about decentralized finance, so let’s first give a brief definition of this relatively new phenomenon. Discussed even at Forbes, DeFi has been a hot topic over the past few months. In short, this is simply a set of blockchain-based financial tools that typically include:
Open lending platforms
These tools are usually built upon Ethereum, the most popular platform for decentralized applications. Akropolis will use it as well, which may cause some concerns regarding the network’s scalability. Currently, Ethereum’s throughput index equals only 19 transactions per second. However, Vitalik Buterin’s team doesn’t stand still and is steadily moving towards its next planned hard forks Istanbul and Serenity that will eventually help it switch to PoS and implement Casper.
The Core Purpose
Initially, Akropolis was to reshape the whole pension industry. In their whitepaper, it is stated that the global deficit between pension assets held and existing liabilities is large and is only expected to grow in the coming decades. Akropolis was planning to deliver a transparent and portable pension infrastructure based on blockchain technologies. However, in May 2019, the conception changed and the new whitepaper now targets autonomous financial systems. There’s not too much to complain about here, as it would have been literally a miracle if they had managed to push their initiative with pensions through numerous legal obstacles across different countries. Now Akropolis aims to build a bank-free financial system where individuals will be able to unite into groups for cooperation and exchange of value, leaving centralized control systems out in the cold. The most obvious example of how this approach can be implemented in reality is related to money loans. The platform allows users to operate with: at a pretty low rate of interest, with no bank account, with no need for long-term lock-ups to receive interest,
With the possibility to get your money back even if your agent “dissolves or fails” …and many other perks.
An Actual Use Case
Having raised its full cap of $2.4 million, the team behind Akropolis doesn’t sit idle on their newly-acquired bags of cash. They have already presented a finished product, Cashflow Relay, the first in line to serve the decentralized society. This is a DeFi equivalent of cashflow financing, with a chief goal of helping companies get investments without having to jump through the myriad hoops that exist with traditional centralized platforms. Projects can get funds directly from investors, accelerate their growth and pay it back as they grow. The product, which is integrated with MakerDAO, 0x, and MetaMask, relies heavily on DAO, unlike the infamous Tether, and offers a true stablecoin that has never been suspected of manipulation surrounding minting of new tokens.
Reaching Key Milestones
A working app is not the project’s only achievement so far. Here are some of their most successful steps:
Partnership with DAI – as has already mentioned, Akropolis is heavily involved with MakerDao’s stable coin.
Partnership with ChainX and PolkaDot – taking on board projects that aim to connect different blockchain-based apps between each other.
The launch of Testnet – due to occur on July 1, 2019, when a workable platform will be launched.
Keeping Audiences Engaged
One of the interesting aspects to highlight is how Akropolis keeps its audience engaged. Generating an audience interested in more than just profits is a well-known issue that many blockchain projects have to contend with. Bounties, airdrops, free tokens – all these tools serve to catch freebie lovers, but not true supporters. Chat groups of such projects are usually full of rocket emojis with no serious discussions of what these projects really offer.
Akropolis has attempted to buck this trend by launching a community quest where participants have to solve tricky riddles, with the fastest getting Akropolis native tokens as a reward. One of the first was on the subject of the Roman Empire, with tasks ranging from writing a short essay on the subject matter to solving a cryptogram encoded with Julias Caesar’s secret encryption method. Such quests generate interest and a hard core of fans, and help make the project memorable.
Having released its first product, the Akropolis team hasn’t rested on their laurels and keeps pushing along its established roadmap. All-in-all, this is definitely a project that blockchain enthusiasts should keep an eye on, especially if it continues to keep community creation at the forefront of its efforts.
The founder of the world’s second biggest cryptocurrency Ethereum, Vitalik Buterin, has questioned whether the Rothschild conspiracy theory extends to digital money.
“Are ‘the Rothschilds’ even well-coordinated enough to be worth caring about as a group these days?” Buterin asked on Reddit. Buterin raised the issue as cryptocurrency enthusiasts are discussing the opaque IMMO blockchain project the banking dynasty is reportedly investing in bitcoin.
Little is known about IMMO, but the crypto-society has said it can be a digital token backed by natural resources like gold or somehow related to real estate. The project is reported to be watched personally by Alexandre de Rothschild, the newly-appointed head of the family’s banking dynasty.
After a discussion on Reddit, Buterin said he came to a conclusion that the Rothschilds’ possible influence on cryptocurrencies is overrated. “My updated view after seeing the replies is that they are just people born into various old-money-type high society positions, and the theories that they are anything beyond that are fairly baseless,” he wrote.
In December, the Rothschild family reportedly purchased bitcoin exposure, via the Grayscale Bitcoin Trust, for the first time. The conspiracy theories around Rothschilds’ cryptocurrency control are being heated up by a 1988 publication in The Economist, a magazine controlled by the family.
“Thirty years from now, Americans, Japanese, Europeans, and people in many other rich countries, and some relatively poor ones will probably be paying for their shopping with the same currency. Prices will be quoted not in dollars, yen or D-marks but in, let’s say, the phoenix. The phoenix will be favored by companies and shoppers because it will be more convenient than today’s national currencies, which by then will seem a quaint cause of much disruption to economic life in the last twentieth century,” the magazine wrote thirty years ago.
The interest of large investors in cryptocurrencies and their market share is growing every day. In 2018, despite frequent criticism of Bitcoin and other digital assets, there is more and more information available about the growing attention given by major institutional investors in the development of the blockchain industry and cryptocurrencies investments.
On May 17th of this year, Rothschild & Co, one of the oldest banks in Europe, announced that the position of the 75-year-old David de Rothschild will be assumed by his successor and son, Alexandre de Rothschild. He becomes the 7th generation of the Rothschild family to manage the bank, which has been at the center of world financial markets for 200 years.
He is also interested in blockchain technology.
Alexandre has been interested in cryptocurrencies since the end of 2017, when he was the Executive Deputy Chairman of the investment management firm, Rothschild & Compagnie Gestion SCS. Since April, there have been rumors in the narrow circle of large cryptocurrency investors that Rothschilds are developing several cryptocurrency projects. At the moment, only one of them has been identified — IMMO. Our source reports that the implementation of IMMO is being monitored by Alexandre de Rothschild himself. However, full and open information about this project is still not available, as all developments remain highly confidential.
The connection between the Rothschilds and the cryptocurrency world is confirmed by recently published articles. In February, it became known that the Tether accounts of Bitfinex were opened in the Dutch bank ING, owned by The Rothschild Group, and a week later the financial company, Circle, whose main shareholder is Goldman Sachs, also controlled by The Rothschild Group, acquired Poloniex, a US-based crypto exchange.
Earlier this year, George Soros announced his readiness to invest in digital assets, despite his earlier criticism on that. And Venrock, which is a $3 billion company owned by the Rockefellers, has signed a partnership agreement with the Coinfund Investment Fund for investing in digital currencies and supporting innovation in the field of blockchain technology. David Pakman, a Partner at Venrock, was quoted in Fortune magazine: “We wanted to partner with this team that has been making investments and actually helping to architect a number of different crypto economies and crypto token-based projects.”
A blockchain is a public database that irreversibly documents and authenticates the possession and transmission of digital assets. Digital currencies, like Bitcoin and Ethereum, are based on this concept. Blockchain is an exciting technology that you can use to transform the capabilities of your applications.
Of late, we’ve been seeing governments, organizations, and individuals using the blockchain technology to create their own cryptocurrencies—and avoid being left behind. Notably, when Facebook proposed its own cryptocurrency, called Libra, the announcement stirred many waters across the world.
What if you could also follow suit and create your own version of a cryptocurrency?
I thought about this and decided to develop an algorithm that creates a crypto.
I decided to call the cryptocurrency fccCoin.
In this tutorial, I’m going to illustrate the step-by-step process I used to build the digital currency (I used the object-oriented concepts of the Python programming language).
Here is the basic blueprint of the blockchain algorithm for creating the fccCoin:
#first block class
#calculates the cryptographic hash of every block
# constructor method
# constructs the initial block
def construct_block(self, proof_no, prev_hash):
# constructs a new block and adds it to the chain
# checks whether the blockchain is valid
def new_data(self, sender, recipient, quantity):
# adds a new transaction to the data of the transactions
# protects the blockchain from attack
# returns the last block in the chain
Now, let me explain what is taking place…
1. Building the first Block class
A blockchain comprises of several blocks that are joined to each other (that sounds familiar, right?).
The chaining of blocks takes place such that if one block is tampered with, the rest of the chain becomes invalid.
In applying the above concept, I created the following initial block class
def __init__(self, index, proof_no, prev_hash, data, timestamp=None):
self.index = index
self.proof_no = proof_no
self.prev_hash = prev_hash
self.data = data
self.timestamp = timestamp or time.time()
As you can see from the code above, I defined the __init__() function, which will be executed when the Block class is being initiated, just like in any other Python class.
I provided the following parameters to the initiation function:
self—this refers to the instance of the Block class, making it possible to access the methods and attributes associated with the class;
index—this keeps track of the position of the block within the blockchain;
proof_no—this is the number produced during the creation of a new block (called mining);
prev_hash—this refers to the hash of the previous block within the chain;
data—this gives a record of all transactions completed, such as the quantity bought;
timestamp—this places a timestamp for the transactions.
The second method in the class, calculate_hash, will generate the hash of the blocks using the above values. The SHA-256 module is imported into the project to assist in obtaining the hashes of the blocks.
After the values have been inputted into the cryptographic hash algorithm, the function will return a 256-bit string representing the contents of the block.
This is how security is achieved in blockchains—every block will have a hash and that hash will rely on the hash of the previous block.
As such, if someone tries to compromise any block in the chain, the other blocks will have invalid hashes, leading to disruption of the entire blockchain network.
self.current_data—this variable keeps all the completed transactions in the block;
self.construct_genesis()—this method will take care of constructing the initial block.
b. Constructing the genesis block
The blockchain requires a construct_genesis method to build the initial block in the chain. In the blockchain convention, this block is special because it symbolizes the start of the blockchain.
In this case, let’s construct it by simply passing some default values to the construct_block method.
I gave both proof_no and prev_hash a value of zero, although you can provide any value you want.
The construct_block method is used for creating new blocks in the blockchain.
Here is what is taking place with the various attributes of this method:
index—this represents the length of the blockchain;
proof_nor & prev_hash—the caller method passes them;
data—this contains a record of all the transactions that are not included in any block on the node;
self.current_data—this is used to reset the transaction list on the node. If a block has been constructed and the transactions allocated to it, the list is reset to ensure that future transactions are added into this list. And, this process will take place continuously;
self.chain.append()—this method joins newly constructed blocks to the chain;
return—lastly, a constructed block object is returned.
d. Checking validity
The check_validity method is important in assessing the integrity of the blockchain and ensuring anomalies are absent.
As mentioned earlier, hashes are essential for the security of the blockchain as even the slightest change in the object will lead to the generation of a completely new hash.
Therefore, this check_validity method uses if statements to check whether the hash of every block is correct.
It also verifies if every block points to the right previous block, through comparing the value of their hashes. If everything is correct, it returns true; otherwise, it returns false.
The new_data method is used for adding the data of transactions to a block. It’s a very simple method: it accepts three parameters (sender’s details, receiver’s details, and quantity) and append the transaction data to self.current_data list.
Anytime a new block is created, this list is allocated to that block and reset once more as explained in the construct_block method.
Once the transaction data has been added to the list, the index of the next block to be created is returned.
This index is calculated by adding 1 to the index of the current block (which is the last in the blockchain). The data will assist a user in submitting the transaction in future.
Proof of work is a concept that prevents the blockchain from abuse. Simply, its objective is to identify a number that solves a problem after a certain amount of computing work is done.
If the difficulty level of identifying the number is high, it discourages spamming and tampering with the blockchain.
In this case, we’ll use a simple algorithm that discourages people from mining blocks or creating blocks easily.
”’this simple algorithm identifies a number f’ such that hash(ff’) contain 4 leading zeroes
f is the previous f’
f’ is the new proof
proof_no = 0
while BlockChain.verifying_proof(proof_no, last_proof) is False:
proof_no += 1
def verifying_proof(last_proof, proof):
#verifying the proof: does hash(last_proof, proof) contain 4 leading zeroes?
”’this simple algorithm identifies a number f’ such that hash(ff’) contain 4 leading zeroes
f is the previous f’
f’ is the new proof
proof_no = 0
while BlockChain.verifying_proof(proof_no, last_proof) is False:
proof_no += 1
def verifying_proof(last_proof, proof):
#verifying the proof: does hash(last_proof, proof) contain 4 leading zeroes?
sender=”0″, #it implies that this node has created a new block
recipient=”Quincy Larson”, #let’s send Quincy some coins!
1, #creating a new block (or identifying the proof number) is awarded with 1
Cryptocurrency Guide The short and easy answer to the title question is that cryptocurrency is decentralized digital money. But what exactly does that mean and how does it work?
What is Cryptocurrency
In this guide, I will answer all the questions you have about cryptocurrency. I’m going to tell you when it was invented, how it works and why it’s going to be so important in the future. By the end of this guide, you’ll be able to answer the question, “what is a cryptocurrency?” for yourself.
The world of cryptocurrency moves fast so there’s no time to waste. Let’s get started!
When I hear a new word, I look up its definition in my dictionary. Cryptocurrency is a new word for most people so let’s write a crypto definition.
What is Cryptocurrency and How Does Cryptocurrency Work?
Cryptocurrency is a form of payment that can be exchanged online for goods and services. Many companies have issued their own currencies, often called tokens, and these can be traded specifically for the good or service that the company provides. Think of them as you would arcade tokens or casino chips. You’ll need to exchange real currency for the cryptocurrency to access the good or service.
Cryptocurrencies work using a technology called blockchain. Blockchain is a decentralized technology spread across many computers that manages and records transactions. Part of the appeal of this technology is its security.
What is Cryptocurrency
Miners try to solve mathematical puzzles first to place the next block on the blockchain and claim a reward.
What is Cryptocurrency EXCHANGE
An exchange is a business (usually a website) where you can buy, sell or trade cryptocurrencies.
What is Cryptocurrency WALLETS
Cryptocurrency wallets are software programs that store public and private keys and enable users to send and receive digital currency and monitor their balance.
There have been many attempts at creating a digital currency during the 90s tech boom, with systems like Flooz, Beenz and DigiCash emerging on the market but inevitably failing. There were many different reasons for their failures, such as fraud, financial problems and even frictions between companies’ employees and their bosses.
Notably, all of those systems utilized a Trusted Third Party approach, meaning that the companies behind them verified and facilitated the transactions. Due to the failures of these companies, the creation of a digital cash system was seen as a lost cause for a long while.
Then, in early 2009, an anonymous programmer or a group of programmers under an alias Satoshi Nakamoto introduced Bitcoin. Satoshi described it as a ‘peer-to-peer electronic cash system.’ It is completely decentralized, meaning there are no servers involved and no central controlling authority. The concept closely resembles peer-to-peer networks for file sharing.
7 Benefits of using cryptocurrency
Digital: Cryptocurrency only exists on computers. There are no coins and no notes. There are no reserves for crypto in Fort Knox or the Bank of England!
Decentralized: Cryptocurrencies don’t have a central computer or server. They are distributed across a network of (typically) thousands of computers. Networks without a central server are called decentralized networks.
Peer-to-Peer: Cryptocurrencies are passed from person to person online. Users don’t deal with each other through banks, PayPal or Facebook. They deal with each other directly. Banks, PayPal and Facebook are all trusted third parties. There are no trusted third parties in cryptocurrency! Note: They are called trusted third parties because users have to trust them with their personal information in order to use their services. For example, we trust the bank with our money and we trust Facebook with our holiday photos!
Pseudonymous: This means that you don’t have to give any personal information to own and use cryptocurrency. There are no rules about who can own or use cryptocurrencies. It’s like posting on a website like 4chan.
Trustless: No trusted third parties means that users don’t have to trust the system for it to work. Users are in complete control of their money and information at all times.
Encrypted: Each user has special codes that stop their information from being accessed by other users. This is called cryptography and it’s nearly impossible to hack. It’s also where the crypto part of the crypto definition comes from. Crypto means hidden. When information is hidden with cryptography, it is encrypted.
Global: Countries have their own currencies called fiat currencies. Sending fiat currencies around the world is difficult. Cryptocurrencies can be sent all over the world easily. Cryptocurrencies are currencies without borders!
Chinese President Xi Jinping said Thursday that the time has come for the country to harness the true potential of blockchain technology.
Xi made that remark yesterday during his speech at a Politburo meeting of the Communist Party of China’s (CCP’s) Central Committee.
The President also noted that China should focus on helping accelerate the growth of the still-nascent-but-promising technology — which, he added, could set the stage for future innovations accompanied by a new wave of industrial transformation.
China Has the Infrastructure for Leading Blockchain Development
President Xi was addressing the 18th collective study of the Politbureau where he said that blockchain technology has a wide range of use cases in China, ranging from business and finance to poverty alleviation and better healthcare.
Specifically, Xi mentioned that blockchain technology will help the “real economy” by solving long-standing issues such as the difficulties SMEs typically face in securing loans, the risk of fraud, and bad loans that banks all over the country regularly deal with.
Apart from that, Xi also urged the blockchain community in China to leverage the technology for boosting people’s livelihood, improving the quality of education and employment, making pension schemes more efficient, ensuring food safety, and promoting public welfare.
“We must take blockchain as an important breakthrough for independent innovation of core technologies,”
The Chinese President, who also doubles up as the General Secretary of the CCP, said that China is equipped with the right blend of infrastructure and the technological know-how to take a lead role in the development of blockchain technology.
To go along that course, the country has to spearhead the efforts to accelerate the standardization of blockchain research. This, according to him, could give China a perfect shot at setting rules and conventions globally.
Worth noting here is that China is ever so close to releasing a Yuan-backed national cryptocurrency, which its central bank believes will add more to the ongoing efforts to digitize the economy.
‘New Space Race’
Meanwhile, unapologetic Bitcoin bull and Morgan Creek Digital Assets co-founder, Anthony Pompliano reacted to President Xi’s speech by suggesting that the quest for supremacy in blockchain tech marks the beginning of a new space race, albeit on the digital frontiers.