Is cryptocurrency the future of money?

What will the future of money look like? Imagine you walk into a restaurant and look at a digital menu board for your favorite combination meal. Only instead of its price being $ 8.99, it is listed as 009 BTC.

Can a crypt really be the future of money? The answer to this question depends on a general consensus on several key solutions, ranging from ease of use to security and rules.

Let’s examine both sides of the (digital) coin and compare and contrast traditional fiat money with cryptocurrency.

The first and most important component is trust.

It is imperative that people trust the currency they use. What gives the dollar its value? Is it gold? No, the dollar has not been backed by gold since the 1970s. Then what gives the dollar (or any other currency) value? The currency of some countries is considered more stable than others. After all, people believe that the government that issued the money stands firmly behind them and, in effect, guarantees their “value”.

How does trust work with bitcoins because it is decentralized, meaning they are not the governing body that issues coins? Bitcoin is on the blockchain, which is basically an online ledger that allows the world to view every transaction. Each of these transactions is checked by miners (people who work on computers in a peer-to-peer network) to prevent fraud and also to ensure that there are no double costs. In exchange for their services to maintain the integrity of the blockchain, miners receive payment for each verified transaction. Since there are countless miners trying to make money, each one checks each other’s work for bugs. This proof of workflow is the reason that the blockchain has never been hacked. In essence, trust is what gives Bitcoin value.

Next let’s look at a close friend of trust, security.

What if my bank is robbed or my credit card is fraudulent? My bank deposits are covered by FDIC insurance. Chances are, my bank will also cancel any fees from my card that I never did. This is not to say that criminals will not be able to perform tricks that are at least frustrating and time consuming. It is more or less peace of mind that comes from knowing that I will most likely be cured of any wrongdoing against me.

The crypto has many options when it comes to where to store your money. Be sure to know if the transaction is insured for your protection. There are reputable exchanges such as Binance and Coinbase that have a proven bug fix experience for their clients. Just as there are fewer reputable banks around the world, so is the crypto.

What will happen if I throw a twenty-dollar bill into the fire? The same is true for the crypt. If I lose my credentials to log in to a specific digital wallet or exchange, I will not be able to access these coins. Again, I can’t stress the importance of doing business with a reputable company.

The next issue is scaling. Currently, this may be the biggest hurdle preventing people from conducting more transactions in the blockchain. As for the speed of transactions, fiat money moves much faster than crypto. Visa can handle about 40,000 transactions per second. Under normal conditions, the blockchain can only process about 10 per second. However, a new protocol is currently being adopted that will rapidly increase this to 60,000 transactions per second. Known as the Lightning Network, this could lead to the crypto becoming future money.

The conversation would not be complete without talking about convenience. What do people usually like about their traditional banking methods and cost methods? For those who prefer cash, it’s obviously easy to use most of the time. If you are trying to book a hotel room or rent a car, you will need a credit card. Personally, I use my credit card wherever I go because it’s convenience, security and rewards.

Did you know that there are companies that provide all this in the crypto space? Monaco is now issuing cards with the Visa logo that automatically convert your digital currency into local currency for you.

If you have ever tried to transfer money to someone, then you know that this process can be very tedious and expensive. Blockchain transactions allow the user to send crypto to whom in minutes, no matter where they live. It is also much cheaper and safer than sending a bank transfer.

There are other modern methods of money transfer that exist in both worlds. Take, for example, applications such as Zelle, Venmo and Messenger Pay. These programs are used daily by millions of millennials. Did you know that they are also starting to include crypto?

The Square Cash app now includes bitcoin, and CEO Jack Dorsey said, “Bitcoin for us doesn’t stop at buying and selling. We believe it’s a transformational technology for our industry and we want to learn as soon as possible.”

He added: “Bitcoin gives more people access to the financial system.”

While it’s clear that fiat spending still dominates the way most of us move money, the new cryptosystem is rapidly gaining ground. Evidence is everywhere. Until 2017, it was difficult to find coverage in the mainstream media. Now almost every major business news agency covers bitcoin. From Forbes to Fidelity, they all weigh their opinions.

What is my opinion? Perhaps the biggest reason for the success of bitcoin is that it is fair, inclusive and gives financial access to more people around the world. Banks and large institutions see this as a threat to their existence. They found themselves at the losing end of the greatest transfer of wealth the world has ever seen.

Haven’t decided yet? Ask yourself, “Do people trust governments and banks more or less every day?”

Your answer to this question may be what determines the future of money.

Cryptocurrency for beginners

In the first days of its launch in 2009, several thousand bitcoins were used to buy pizza. Since then, the rapid rise of cryptocurrency to $ 65,000 in April 2021 after losing heart in mid-2018, falling about 70 percent to about $ 6,000, has stunned the minds of many people – cryptocurrency investors, traders or just curious. missed the boat.

How it all started

Keep in mind that dissatisfaction with the current financial system has led to the development of digital currency. The development of this cryptocurrency is based on the Satoshi Nakamoto blockchain technology, an alias that is apparently used by a developer or group of developers.

Despite many opinions predicting the death of cryptocurrencies, the performance of bitcoin has inspired the creation of many other digital currencies, especially in recent years. The success of crowdfunding caused by the blockchain fever has also attracted those to deceive unsuspecting audiences, and it has attracted the attention of regulators.

Except bitcoin

Bitcoin has inspired the launch of many other digital currencies. There are currently over 1,000 versions of digital coins or tokens. Not all of them are the same, and their values ​​are very different, as is their liquidity.

Coins, altcoins and tokens

At this point, suffice it to say that there are subtle differences between coins, altcoins, and tokens. Altcoins or alternative coins usually describe things other than the original bitcoin, although altcoins such as etherium, lightcoin, ripple, dogecoin and dash are considered the “main” category of coins, meaning they are traded on more cryptocurrency exchanges.

Coins serve as currency or a repository of valuables, while tokens offer the use of assets or useful assets, an example being a blockchain service to manage supply chains to check and track wine products from the distillery to the consumer.

It’s worth noting that low-value tokens or coins offer opportunities to raise, but don’t expect similar flatulence growth like bitcoin. Simply put, lesser known tokens are easy to buy but hard to sell.

Before embarking on cryptocurrency, start by studying the value and technological considerations, namely the commercial strategies outlined in the White Paper that accompanies each initial coin offering or ICO.

For those familiar with stocks and stocks, this is not unlike an initial public offering or IPO. However, IPOs are issued by companies with tangible assets and business experience. All this is done in a regulated environment. On the other hand, the ICO is based solely on the idea proposed in the White Paper by an enterprise that is not yet operational and without assets, which is looking for funds to launch.

Unregulated, so buyers be careful

“It is impossible to regulate what is unknown,” – probably summarizes the situation with digital currency. Regulators and regulators are still trying to catch up with cryptocurrencies that are constantly evolving. The golden rule in cryptospace is “caveat emptor”, let the buyer beware.

Some countries openly adopt policies to deviate from cryptocurrencies and blockchain applications, while monitoring for open fraud. However, there are regulators in other countries who are more concerned with the pros than the pros of digital money. Regulators typically understand the need to maintain balance, and some are reviewing existing securities laws to try to deal with the many varieties of cryptocurrencies around the world.

Digital wallets: the first step

A wallet is needed to get started in cryptocurrency. Think of e-banking, but minus the protection of the law in the case of virtual currency, so security is the first and last thought in cryptospace.

Digital type wallets. There are two types of wallets.

  • Hot wallets are connected to the internet, exposing users to the risk of hacking

  • Cold wallets that are not connected to the internet and are considered safer.

Apart from the two main types of wallets, it should be noted that there are wallets for only one cryptocurrency and others for several cryptocurrencies. It is also possible to have a wallet with multiple signatures, something like a joint bank account.

The choice of wallet depends on the user’s preferences, whether he is interested exclusively in bitcoin or etherium, as each coin has its own wallet, or you can use a third-party wallet that includes security features.

Notes in the wallet

The cryptocurrency wallet has a public and private key with personal transaction records. The public key includes a link to the account or cryptocurrency address, as opposed to the name required to receive the check payment.

The public key is available to everyone, but transactions are only confirmed after verification and verification based on a consensus mechanism that applies to each cryptocurrency.

The private key can be considered a PIN code, which is commonly used in electronic financial transactions. It follows that the user should never give out a private key to anyone and make backup copies of this data, which should be stored offline.

On a hot wallet it makes sense to have a minimum of cryptocurrency, and in a cold wallet more. Losing a private key equals losing a cryptocurrency! The usual precautions are applied to online financial transactions: from strong passwords to malware and phishing alerts.

Wallet formats

Different types of wallets are available according to individual preferences.

  • Hardware wallets made by third parties that need to be purchased. These devices work like a USB device that is considered secure and only connects to the Internet when needed.

  • Web wallets provided by, for example, cryptocurrencies are considered hot wallets that put users at risk.

  • Software wallets for desktops or mobile phones are mostly available for free and can be provided by coin issuers or third parties.

  • Paper wallets can be printed with relevant data on cryptocurrency owned with public and private keys in QR code format. They need to be kept in a safe place until they are needed during a crypto transaction, and copies should be made in case of accidents such as water damage or printed data over time.

Crypto exchanges and marketplaces

Cryptocurrencies are trading platforms for those who are interested in virtual currencies. Other options include websites for direct trade between buyers and sellers, as well as brokers where there is no “market” price, but it is based on a trade-off between the parties to the transaction.

Thus, there are many crypto exchanges located in different countries, but with different standards of security practices and infrastructure. They range from those that allow anonymous registration, which only requires email to open an account and start trading. However, there are others that require users to comply with international authentication measures, known as Know-Your-Customer, and Anti-Money Laundering (AML) measures.

The choice of crypto-exchange depends on the preferences of users, but anonymous may have restrictions on the amount of trade allowed or fall under sudden new rules in the host country of the exchange. Minimum administrative procedures with anonymous registration allow users to start trading quickly, and the KYC and AML processes will take longer.

All crypto transactions must be properly processed and verified, which can take from a few minutes to several hours, depending on the coins or tokens being traded and the volume of the trade. It is known that the problem of scalability is a problem of cryptocurrencies, and developers are working to find a solution.

Cryptocurrency exchanges are divided into two categories.

  • Fiat cryptocurrency Such exchanges provide for the purchase of fiat cryptocurrency by direct transfers from bank or credit and debit cards, as well as through ATMs in some countries.

  • Only cryptocurrency. There are cryptocurrency exchanges that deal only with cryptocurrency, which means that customers must already own cryptocurrency – such as bitcoin or etherium – to “exchange” for other coins or tokens, based on the market rate.

Fees are levied to facilitate the buying and selling of cryptocurrencies. Users need to conduct a survey to be satisfied with the infrastructure and security measures, and to determine the tariffs that are convenient for them, as different rates are charged on different exchanges.

Don’t expect a total market price for the same cryptocurrency with differences. You may want to spend time researching the best price for coins and tokens that interest you.

Financial transactions on the Internet carry risks, and users should consider precautions such as two-factor authentication or 2-FA, be aware of the latest security measures and be aware of phishing scams. One golden rule of phishing is not to click on the provided links, no matter how authentic the message or email is.

Crypto TREND – fifth edition

As we expected, since the publication of Crypto TREND we have received many questions from readers. In this edition we will answer the most common.

What changes will happen that can change the game in the cryptocurrency sector?

One of the biggest changes that will affect the world of cryptocurrencies is an alternative method of checking blocks called Proof of Stake (PoS). We will try to keep this explanation at a fairly high level, but it is important to have a conceptual understanding of what the difference is and why it is a significant factor.

Remember that the underlying technology with digital currencies is called blockchain, and most modern digital currencies use a validation protocol called Proof of Work (PoW).

With traditional payment methods you need to trust a third party such as Visa, Interact, a bank or a clearing house to calculate your transaction. These trustees are “centralized,” meaning they keep their own personal ledger that stores the transaction history and balance of each account. They will show you the transaction and you have to agree that it is correct, or start a dispute. This is seen only by the parties to the transaction.

With bitcoins and most other digital currencies, ledgers are “decentralized,” which means everyone on the network gets a copy, so no one should trust a third party, such as a bank, because anyone can directly verify information. This verification process is called “distributed consensus”.

PoW requires that “work” be done to confirm a new transaction to enter the blockchain. With cryptocurrencies, this check is done by “miners” who have to solve complex algorithmic problems. As algorithmic tasks become more complex, these “miners” need more expensive and powerful computers to solve problems first. “Mining” computers are often specialized, usually using ASIC (Application Specific Integrated Circuits) chips, which are smarter and faster at solving these complex puzzles.

Here is the process:

  • Transactions are combined into a “block”.
  • Miner verifies that the transactions in each block are legitimate by solving a hash algorithm puzzle known as the “proof of work problem”.
  • The first miner to solve the “proof of work problem” block is rewarded with a small amount of cryptocurrency.
  • After verification, transactions are stored in a public blockchain throughout the network.
  • As the number of transactions and miner increases and the difficulty of solving hashing problems increases.

Although PoW has helped get blockchain and decentralized, unreliable digital currencies, it has some real drawbacks, especially with the amount of electricity these miners consume trying to solve “proof of work” issues as quickly as possible. According to the Digiconomist Bitcoin Energy Consumption Index, bitcoin miners use more energy than in 159 countries, including Ireland. As the value of each bitcoin grows more and more miners are trying to solve problems by consuming even more energy.

All of this energy consumption just for transaction verification has motivated many in the digital currency space to look for an alternative method of verifying blocks, and the main candidate is a method called “Proof of Share” (PoS).

PoS is still an algorithm, and the goal is the same as in proof of work, but the process of achieving the goal is completely different. With PoS there is no Miner, but instead we have “validators”. PoS is based on trust and knowledge that all people who check transactions have skin in the game.

Thus, instead of using energy to respond to PoW puzzles, the PoS validator is limited to checking the percentage of transactions that reflect his or her share of ownership. For example, a validator that owns 3% of the available airtime could theoretically test only 3% of the blocks.

In PoW, the chances of you solving a proof of work problem depend on what computing power you have. With PoS it depends on how much cryptocurrency you have “at stake”. The higher your bet, the higher the chances that you will break the block. Instead of winning cryptocurrencies, the validator who wins receives a transaction fee.

Validators enter their bet by “blocking” part of their fund tokens. If they try to do something harmful against the network, such as creating an “invalid block”, their share or collateral will be confiscated. If they do their job and do not break the network, but do not win the right to check the unit, they will get back their share or deposit.

If you understand the basic difference between PoW and PoS, this is all you need to know. Only those who plan to become miners or validators should understand all the intricacies of these two verification methods. Most of the general public who wants to own cryptocurrencies will simply buy them through an exchange rather than engage in actual mining or verification of block transactions.

Most in the crypto sector believe that in order for digital currencies to survive in the long run, digital tokens need to move to the PoS model. At the time of writing, Ethereum is the second largest digital currency after Bitcoin, and their development team has been working on its PoS algorithm called “Casper” for the past few years. It is expected that we will see that Casper will be implemented in 2018, which will put Ethereum ahead of all other major cryptocurrencies.

As we have seen before in this sector, major developments such as the successful introduction of Casper could raise prices for Ethereum. We will keep you posted on upcoming issues of Crypto TREND.

Stay tuned!

What is a cryptocurrency?

Cryptocurrency (or cryptography) is a controversial digital asset designed to operate a cryptocurrency exchange for the security of your transactions, additional monitoring and asset transfer units. Cryptocurrencies are a type of digital currency, alternative currency and virtual currency. Cryptocurrencies use decentralized control instead of a centralized electronic money system and central banks.

Decentralized control of each cryptocurrency works through a blockchain, which is the basis of public transactions that functions as a distributed record.

Formal definition

According to Jan Lansky, crypto may is a system that meets four conditions:

• The policy determines whether new cryptocurrency units can be created. When new cryptocurrency units can be developed, the system determines the circumstances of the source with ownership of these new units.

• If two different instructions are entered to change the purchase of the same cryptographic units, the system performs no more than one of them.

• The system allows you to conduct transactions in such a way that the owner of the cryptographic unit changes. The transaction with the statement can be issued only by a person who confirms the current owners of these units.

• Ownership of cryptocurrency units can be indicated solely by cryptography.

Review

Decentralized cryptography collectively produces the entire system of cryptographic services at a rate determined at the time of system establishment and is known to the public. In centralized banking and economic policies, such as the Federal Reserve, administrative committees or governments control the money supply by printing trust fund units or requiring additional digital books. In the case of decentralized cryptocurrencies, governments or companies cannot produce new units, but they are not compatible with other companies, banks or organizations that have property value. The basic technical system, based on decentralized cryptocurrencies, was created by a group or individual known as Satoshi Nakamoto.

As of May 2018, there were more than 1,800 cryptocurrency specifications. The cryptocurrency, security, integrity and balance entry system is maintained by a community of mutually suspicious individuals, called minors, who use their computer to confirm transaction times by adding them to the registry according to a specific time stamping scheme.

Most copies of the crypt are designed to gradually reduce the production of this currency by limiting the total number of those coins that will be in circulation. Compared to conventional currencies held in financial institutions

money in hand, police may find it harder to catch the crypt. This problem stems from the use of cryptographic technology.

Blockchain use cases

Blockchain – this is exactly what the name says – a block of transactions linked together in a chain. Originally created to support cryptocurrency, bitcoin, Blockchain technology has emerged and has the potential to change our lives, the economy and the world. One of the best things about Blockchain is that all transactions are public. This means you can trace everything back to its origin.

For example, imagine that a disease of food origin occurs. Contamination could be traced from the plate to the supermarket and back to the source of the product. Let’s take that transparency one step further. We live in an armed society. Many weapons are traded illegally. Blockchain technology will not only eliminate illegal trade, but will also be a way to prosecute the source of the illegal arms trade. In addition to the fact that transactions can be public, blockchain transactions are also fast.

Blockchain could potentially replace current trading platforms because investors who sell stocks through Blockchain will get instant access to their funds instead of the usual waiting time. Transactions made on the blockchain are extremely fast, at a low cost and, most importantly, more secure than many, if not all, platforms. Security is a huge factor in Blockchain that is transforming the world as we know it. Due to its design, the blockchain is virtually impossible to crack. His transaction books are decentralized, which means that copies of these transactions exist and must be verified by nodes. Once the transaction is verified, it is “sealed” into a block and it is virtually impossible to change it. Because this platform is so secure, it can be used as a voting tool in the United States and even around the world.

There are so many alleged cases of corruption and fraud that blockchain voting eliminates these fears. Again, everything is public. It’s instantaneous. And it’s very safe. Will not worry about changing votes or not counting votes. An irreversible book will confirm this. Apart from the fact that bitcoin is public, reliable and secure, it is also very cost effective. For most transactions, this eliminates the middleman. There will be a great need for third parties to manage or view transactions. Companies don’t have to spend on security costs to prevent fraud because it covers Blockchain. Companies will also be able to use Blockchain to assess their own supply chain and identify inefficiencies.

You find it funny how Blockchain started as a small platform to support Bitcoin, and now this technology is bigger than the one it was created to support. Although Blockchain technology is relatively new, there are many benefits that are too good not to be noticed. Blockchain technology is transparent. All transactions take place through a public ledger. Blockchain technology is both fast and cost effective. And ultimately, blockchain technology is safe and secure.

What is the value of a blockchain?

Blockchain is a unique invention: the brainchild of a person or group of people known as Satoshi Nakamoto. But since then it has evolved into something more significant, and the main question everyone is asking is: what is Blockchain?

By allowing digital data to be distributed but not copied, blockchain technology has laid the foundation for a new type of Internet. Originally developed for digital currency, the Bitcoin (Buy Bitcoin) community technology now finds other potential benefits of the technology.

Bitcoin is called “digital gold” and for good reason. So far the total value of the currency is close to $ 9 billion. And blockchains can create other types of numeric values. Like the Internet (or your car), you don’t need to know how a blocker uses it. However, basic knowledge of this new technology demonstrates why it is considered revolutionary.

Blockchain Durability and reliability

Blockchain technology is similar to the Internet with integrated reliability. By keeping the same information blocks in your network, the blockchain cannot:

1. Has no single point of failure.

2. Control any individual entity.

Bitcoin was invented in 2008. Since then, the bitcoin blockchain has worked without significant disruptions. (So ​​far, all bitcoin-related problems are caused by hacking or mismanagement, in other words, these problems are due to malicious intent and human error, not due to imperfections in basic concepts).

The Internet itself is almost 30 years old. This is a record that is good for blockchain technology because it is still evolving.

Who will use the blockchain?

As a web infrastructure, you don’t need to know a chain of blocks to be useful in your life.

Currently, finance offers the most influential uses of technology. For example, international settlements. The World Bank estimates that more than $ 430 billion in remittances were disbursed in 2015. And so far there is a great demand for development engineers.

Blockchain potentially reduces the number of intermediaries for this type of transaction. Personal computers have become more accessible to the general public thanks to an inventory of the graphical user interface (GUI) that has formed the “desktop”. Also, the most common GUIs developed for Blockchain are called so. Wallet apps used by people to buy things for bitcoin and store them in other cryptocurrencies.

Online transactions are closely linked to identity verification processes. It is easy to imagine that in the coming years portability applications will change to include other types of authentication management.

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How can Blockchain Consulting increase the productivity of your business?

It’s not critical if you’re a little conservative and insist on using time-worn tools, trying to adapt them to the modern requirements of your business and hoping that eventually everything will work out. But what good is a wheel? Why not enable innovation and reap the rewards?

You’ve probably heard of blockchain technology, and if you dare to implement it in your field – it’s great! And to master the technology, avoid mistakes in the implementation process and anticipate all the possibilities, it is better to seek the help of blockchain consultants. Rest assured that a great result is guaranteed.

Why you should turn to blockchain consulting services

You definitely know that blockchain has made its way into so many areas that once you start counting them, you stumble pretty quickly. Why so? Blockchain technology provides many options along with benefits for users who want to experiment with this ingenious tool. But before you get started, you are strongly encouraged to use the services of professional consultants, and let’s figure out why.

First, blockchain specialists have the information and experience necessary to understand the specific requirements of each enterprise. They are certainly well versed in the application of the blockchain and know this inside out. Another positive aspect is that blockchain consultants keep abreast of the latest trends and opportunities, so they are committed to presenting the best solution for the blockchain.

You will also be pleasantly surprised to find that blockchain consultants can offer to organize special seminars for your employees. This will allow them to explore the ropes of sophisticated technology and share their forward-looking approaches.

Needless to say, the use of blockchain consulting services is considered more cost-effective compared to attracting people who will work full time (here you should consider staffing problems, bonuses for multiple employees, etc.). Also, it’s clear that blockchain consultants aren’t needed on an ongoing basis: they’ll help you expand your business, give you the information you need about technology, and no doubt, whenever you need more help in the future, they’ll help you be around. So you can take this factor into account.

How you can benefit from blockchain consulting services

The main advantage of working with blockchain consulting companies is that you can be one hundred percent sure that a team of developed professionals will work with you and ensure that you get full coverage of the implementation of blockchain in your company. They will tell you exactly how you will benefit from using blockchains (this will be a comprehensive detailed description, including expert assessments and comments). They also investigate an existing problem, if any, and explain to you how a blockchain can solve it.

Another important thing to note is that blockchain consultants are well aware of how a distributed network works. You may get confused and ask why this is important. Look, blockchain technology is based on distributed networks running smart contracts and decentralized applications. Thanks to consulting services, customers understand how the blockchain network works, and can offer solutions themselves.

Also, consider one organizational aspect. The blockchain industry has certain rules that all business owners are required to follow. For their part, blockchain consultants learn these rules and give you all the details you need to know. What’s more, they will be able to help solve any problems you may face, drawing on your previous experience with other clients.

Hopefully, you will find the above facts convincing enough to put on a cap of reflection and trust the blockchain consultants. Rest assured that your business will thrive and you will be very happy with the results.