12345...102030...


Cryptocurrency Definition | Investopedia

What is a ‘Cryptocurrency’

A cryptocurrency is a digital or virtual currency that uses cryptography for security. A cryptocurrency is difficult to counterfeit because of this security feature. Many cryptocurrencies are decentralized systems based on blockchain technology, a distributed ledger enforced by a disparate network of computers. A defining feature of a cryptocurrency, and arguably its biggest allure, is its organic nature; it is not issued by any central authority, rendering it theoretically immune to government interference or manipulation.

The first blockchain-based cryptocurrency wasBitcoin, which still remains the most popular and most valuable. Today, there are thousands of alternate cryptocurrencies with various functions or specifications. Some of these are clones of Bitcoin while others are forks, or new cryptocurrencies that split off from an already existing one.

Cryptocurrencies are systems that allow for the secure payments of online transactions that are denominated in terms of a virtual “token,” representing ledger entriesinternal to the system itself. “Crypto” refers to the fact that various encryption algorithms and cryptographic techniques, such as elliptical curve encryption, public-private key pairs, and hashing functions, are employed.

The first cryptocurrency to capture the public imagination was Bitcoin, which was launched in 2009 by an individual or group known under the pseudonym,Satoshi Nakamoto. As of October 2018, there were over 17.33 million bitcoins in circulation with a total market value of around $115 billion (although the market price of bitcoin can fluctuate quite a bit). Bitcoin’s success has spawned a number of competing cryptocurrencies, known as “altcoins” such as Litecoin, Namecoin and Peercoin, as well as Ethereum, EOS, and Cardano. Today, there are literally thousands of cryptocurrencies in existence, with an aggregate market value of over $200 billion (Bitcoin currently represents more than 50% of the total value).

Cryptocurrencies hold the promise of making it easier to transfer funds directly between two parties in a transaction, without the need for a trusted third party such as a bank or credit card company; these transfers are facilitated through the use of public keys and private keys for security purposes. In modern cryptocurrency systems, a user’s “wallet,” or account address, has the public key, and the private key is used to sign transactions. Fund transfers are done with minimal processing fees, allowing users to avoid the steep fees charged by most banks and financial institutions for wire transfers.

Central to the appeal and function of Bitcoin is the blockchaintechnologyit uses to store an online ledger of all the transactions that have ever been conducted using bitcoins, providing a data structure for this ledger that is exposed to a limited threat from hackers and can be copied across all computers running Bitcoin software. Every new block generated must be verified by the ledgers of each user on the market, making it almost impossible to forge transaction histories. Many experts see this blockchain as having important uses in technologiessuch as online voting and crowdfunding, and major financial institutions such as JPMorgan Chase see potential in cryptocurrencies to lower transaction costs by making payment processing more efficient. However, because cryptocurrencies are virtual and do not have a central repository, a digital cryptocurrency balance can be wiped out by a computer crash if a backup copy of the holdings does not exist, or if somebody simply loses their private keys. At the same time, there is no central authority, government, or corporation that has access to your funds or your personal information.

The semi-anonymous nature of cryptocurrency transactions makes them well-suited for a host of nefarious activities, such as money laundering and tax evasion. However, cryptocurrencyadvocates often value the anonymity highly. Some cryptocurrencies are more private than others. Bitcoin, for instance, is a relatively poor choice for conducting illegal business online, and forensic analysis of bitcoin transactions has led authorities to arrest and prosecute criminals. More privacy-oriented coins do exist, such as Dash, ZCash, or Monero, which are far more difficult to trace.

Since prices are based on supply and demand, the rate at which a cryptocurrency can be exchanged for another currency can fluctuate widely. However, plenty of research has been undertaken to identify the fundamental price drivers of cryptocurrencies.Bitcoin has indeed experienced some rapid surges and collapses in value, reaching as high as $19,000 per bitcoin in December of 2017 before returning to around $7,000 in the following months. Cryptocurrencies are thus considered by some economists to be a short-lived fad or speculative bubble. There is concern especially that the currency units, such as bitcoins, are not rooted in any material goods. Some research has identified that the cost of producing a bitcoin, which takes an increasingly large amount of energy, is directly related to its market price.

Cryptocurrencies’ blockchains are secure, but other aspects of a cryptocurrency ecosystem are not immune to the threat of hacking. In Bitcoin’s almost 10-year history, several online exchanges have been the subject of hacking and theft, sometimes with millions of dollars worth of ‘coins’ stolen. Still, many observers look at cryptocurrencies as hope that a currency can exist that preserves value, facilitates exchange, is more transportable than hard metals, and is outside the influence of central banks and governments.

See the original post:

Cryptocurrency Definition | Investopedia

List of cryptocurrencies – Wikipedia

ReleaseStatusCurrencySymbolFounder(s)Hash algorithmProgramming language of implementationCryptocurrency blockchain (PoS, PoW, or other)Notes2009ActiveBitcoinBTC,[4][5] XBT, Satoshi Nakamoto[nt 1]SHA-256d[6][7]C++[8]PoW[7][9]The first and most widely used decentralized ledger currency,[10] with the highest market capitalization.[11]2011ActiveLitecoinLTC, Charlie LeeScryptC++[12]PoWThe first cryptocurrency to use Scrypt as a hashing algorithm.2011ActiveNamecoinNMCVincent Durham[13][14]SHA-256dC++[15]PoWAlso acts as an alternative, decentralized DNS.2011ActiveSwiftCoinSTCDaniel BrunoSHA-256PoWFirst block chain to support currency creation by interest paid on debt, and one of the first digital coins patented in the US.2012ActiveBytecoinBCNCryptoNoteC++[16]PoWFirst cryptocurrency based on the CryptoNote algorithm.2012ActivePeercoinPPCSunny King(pseudonym)[17]SHA-256d[18]C++[19]PoW & PoSThe first cryptocurrency to use POW and POS functions.2013ActiveDogecoinDOGE, XDG, Jackson Palmer& Billy Markus[20]Scrypt[21]C++[22]PoWBased on the Doge internet meme.2013[23]ActiveFeathercoinFTC, Peter Bushnell, Brasenose College of Oxford UniversityNeoScryptC++[24]N/AApprox. 60 seconds block time.[25] Originally forked from Litecoin.2013[26][27]ActiveGridcoinGRCRob Hlford [28]ScryptC++[29]Decentralized PoSLinked to citizen science through the Berkeley Open Infrastructure for Network Computing[30][31]2013ActivePrimecoinXPMSunny King(pseudonym)[17]1CC/2CC/TWN[32]TypeScript, C++[33]PoW[32]Uses the finding of prime chains composed of Cunningham chains and bi-twin chains for proof-of-work.2013ActiveRipple[34][35][36]XRP[36]Chris Larsen &Jed McCaleb[37]ECDSA[38]C++[39]”Consensus”Designed for peer to peer debt transfer. Not based on bitcoin.2013ActiveNxtNXTBCNext(pseudonym)SHA-256d[40]Java[41]PoSSpecifically designed as a flexible platform to build applications and financial services around its protocol.2013[42]ActiveSkycoinSKYBrandon ‘Synth’ Smietana[43]SHA256CX/CXOObelisk[44]Peer-to-peer Internet2014ActiveAuroracoinAURBaldur Odinsson(pseudonym)[45]ScryptC++[46]PoWCreated as an alternative currency for Iceland, intended to replace the Icelandic krna.2014InactiveCoinyeKOI, COYEScryptPoWUsed American hip hop artist Kanye West as its mascot, abandoned after he filed a trademark lawsuit.2014ActiveDashDASHEvan Duffield &Kyle Hagan[47]X11C++[48]PoW & Proof of Service[nt 2]A bitcoin-based currency featuring instant transactions, decentralized governance and budgeting, and private transactions.2014ActiveNEONEODa Hongfei & Erik ZhangSHA-256 & RIPEMD160C#[49]dBFTChina based cryptocurrency, formerly ANT Shares and ANT Coins, the name was changed in 2017 to NEO and GAs.2014ActiveMazaCoinMZCBTC Oyate InitiativeSHA-256dC++[50]PoWThe underlying software is derived from that of another cryptocurrency, ZetaCoin.2014ActiveMoneroXMRMonero Core TeamCryptoNight[51]C++[52]PoWPrivacy-centric coin using the CryptoNote protocol with improvements for scalability and decentralization.2014ActiveNEMXEMUtopianFuture (pseudonym)SHA3-512Java[53]POIThe first hybrid public/private blockchain solution built from scratch, and first to use the Proof of Importance algorithm using EigenTrust++ reputation system.2014ActivePotCoinPOTPotcoin core dev teamScryptC++[54]PoSDeveloped to service the legalized cannabis industry in the United States.2014ActiveSynereo AMPAMPDor Konforty & Greg Meredith[55]PoSScala, Java[56]PoSTrying to create a world computer, Synereos 2.0 tech stack incorporates support for decentralized computation without central servers.[57]2014ActiveTitcoinTITEdward Mansfield & Richard Allen[58]SHA-256dTypeScript, C++[59]PoWThe first cryptocurrency to be nominated for a major adult industry award.[60]2014ActiveVergeXVGSunerokScrypt, x17, groestl, blake2s, and lyra2rev2C, C++[61]PoWFeatures anonymous transactions using Tor and I2P.2014ActiveStellarXLMJed McCalebStellar Consensus Protocol (SCP) [62]C, C++[63]Stellar Consensus Protocol (SCP) [62]Open-source, decentralized global financial network.2014ActiveVertcoinVTCBushidoLyra2RE[64]C++[65]PoWNext-gen ASIC resistance and first cryptocurrency to implement stealth addresses.2015ActiveEther or “Ethereum”ETHVitalik Buterin[66]Ethash[67]C++, Go[68]PoWSupports Turing-complete smart contracts.2015ActiveEthereum ClassicETCEthash[67]PoWAn alternative version of Ethereum[69] whose blockchain does not include the DAO Hard-fork.[70][71] Supports Turing-complete smart contracts.2015ActiveTetherUSDTJan Ludovicus van der Velde[72]Omnicore [73]PoWTether claims to be backed by USD at a 1 to 1 ratio. The company has been unable to produce promised audits.[74]2015InactiveNeucoinNEUDaniel KaufmanSHA-256PoW & PoSBased on Peercoin, attempted to improve security. Project dissolved in November 2016.2016ActiveDecredDCRBlake-256Go[75]PoW/PoS HybridBuilt in governance and hybrid PoW/PoS.2016ActiveLiskLSKMax Kordek & Oliver BeddowsPoSJavaScript[76]PoSOpen blockchain platform for decentralized, and scalable blockchain applications, including custom tokens, on sidechains.[77]2016ActiveZcashZECZooko WilcoxEquihashC++[78]PoWThe first open, permissionless financial system employing zero-knowledge security.2017InactiveBitConnectBCCBitConnect was described as an open source, all-in-one bitcoin and crypto community platform but was later described as a Ponzi scheme2017ActiveBitcoin CashBCH[79]SHA-256dPoWHard fork from Bitcoin, Increased Block size from 1mb to 8mb2017ActiveEOS.IOEOSDan LarimerWebAssembly, Rust, C, C++[80]delegated PoSFeeless Smart contract platform for decentralized applications and decentralized autonomous corporations with a block time of 500 ms.[80]2018ActiveCardanoADACharles Hoskinson & IOHKHaskell[81]Ouroboros PoSThe Ada cryptocurrency runs on the Cardano platform.2018InactiveKodakCoinKodak and WENN DigitalEthash[82]KodakCoin is a “photographer-centric” blockchain cryptocurrency used for payments for licensing photographs.2018InactivePetroVenezuela GovernmentonixCoin[83]C++[84]Stated by Nicols Maduro to be backed by Venezuela’s reserves of oil. As of August2018[update] it does not appear to function as a currency.[85]2018ActiveBitcoin PrivateBTCPEquihashC++[86]PoWCoin uses zkSNARK for anonymous payments. Hardfork (co-fork) of BTC and ZClassic

Continued here:

List of cryptocurrencies – Wikipedia

Cryptocurrency news and discussions. r/CryptoCurrency

I tried to withdrawal my money 7 months ago. I still have received nothing.

For 6 months Poloniex ignored my support requests. They also refused to reply to multiple Better Business Bureau inquiries that I filed. Their compliance officer John Brown (skype sweetjohndee) mostly ignored my messages, occasionally promising me he was “working on it” but refusing to give me any real information.

Last month I told Poloniex I’d be filing a complaint with the Massachusetts attorney general if they didn’t do the right thing. That got them off their asses, and they finally started replying to my support tickets (still a week+ response time, but better than being completely ignored)

John accidentally let slip that basically nothing had been done on this until last month. That alone is criminal. For 6 months they did nothing to send me my property. Only this last month (the 7th month since trying to withdrawal my money) have they been working on it. Or so they claim, it doesn’t seem like they’ve been working on it during this month either.

John mentioned that an engineer is needed to send me my money. Yet they didn’t even have an engineer look at my support ticket until the 7th month.

I told Poloniex I would be an idiot to take their word that they are actually working on it. And unless they gave me real information as to what is actually going on, that I was going to file a report with boston pd and bring a civil suit against them. I went ahead with filing a complaint with the attorney general, because it was clear to me they were not going to do the right thing.

Poloniex sent me back an NDA. Asked me to sign it, send it back, and then they would call me.

I refused. I have a right to my own property without needing to sign any further documentation. I told them to call me without the signed NDA.

They promptly replied (for the first time ever) that they are “archiving” my balance and won’t send me my money. They are holding my property hostage until I do what they want. Their actions are criminal.

They are now claiming they can’t send me my money because trading of the coin has been delisted. Yet that was the case 7 months ago. If that was truly the problem, they would have said so originally. Also, withdrawals were still enabled. And what would be the purpose of assigning an engineer to the support ticket, if it’s impossible to send someone money that is a de-traded coin? And not trading a coin, has absolutely nothing to do with sending someone their money.

But the moment I refuse to sign an NDA, all efforts completely stop. They have now closed my support ticket. The engineer that promised a resolution is none responsive.

I have no idea what horrible news they were going to tell me about Poloniex, that they are trying to coerce me into signing an NDA.

I STRONGLY suggest everyone take their money off immediately. I sense they are running a fractional reserve, or are doing something else equally shady. Take your money out while you still can. I probably won’t be as lucky.

I am filing a police report with boston pd and will update you all on what happens.

Their actions constitute criminal fraud and coercion. If anyone else wants to send me evidence of fraudulent activity you’ve been a victim of please comment below or message me. I will add it to the packet I’m sending boston pd. I am currently sending them all my support tickets, my messages with their compliance officer, my unanswered BBB inquiries, the 500+ complaints and one star reviews they have on BBB, and the NDA.

I will also put forth my argument to the cops that people at Circle should also be criminally charged. I alerted Circle support multiple times that fraud was happening on their platform. Each time they ignored me and closed my support ticket. Knowingly allowing fraud to take place on their platform is illegal.

Here is a copy of the NDA: https://imgur.com/iyeLoRE

TLDR: Poloniex has not sent me my money after 7 months. I told them I would file a police report. They asked me to sign an NDA. I refused. They then responded that they will not send my money.

Continue reading here:

Cryptocurrency news and discussions. r/CryptoCurrency

Cryptocurrency Definition | Investopedia

What is a ‘Cryptocurrency’

A cryptocurrency is a digital or virtual currency that uses cryptography for security. A cryptocurrency is difficult to counterfeit because of this security feature. A defining feature of a cryptocurrency, and arguably its most endearing allure, is its organic nature; it is not issued by any central authority, rendering it theoretically immune to government interference or manipulation.

The first cryptocurrency to capture the public imagination was Bitcoin, which was launched in 2009 by an individual or group known under the pseudonym Satoshi Nakamoto. As of May 2018, there were over 17million bitcoins in circulation with a total market value of over $140 billion. Bitcoin’s success has spawned a number of competing cryptocurrencies, such as Litecoin, Namecoin and PPCoin.

Cryptocurrencies make it easier to transfer funds between two parties in a transaction; these transfers are facilitated through the use of public and private keys for security purposes. These fund transfers are done with minimal processing fees, allowing users to avoid the steep fees charged by most banks and financial institutions for wire transfers.

Central to the appeal and function of Bitcoin is the blockchaintechnologyit uses to store an online ledger of all the transactions that have ever been conducted using bitcoins, providing a data structure for this ledger that is exposed to a limited threat from hackers and can be copied across all computers running Bitcoin software. Every new block generated must be verified by the ledgers of each user on the market, making it almost impossible to forge transaction histories. Many experts see this blockchain as having important uses in technologies, such as online voting and crowdfunding, and major financial institutions such as JP Morgan Chase see potential in cryptocurrencies to lower transaction costs by making payment processing more efficient.

However, because cryptocurrencies are virtual and do not have a central repository, a digital cryptocurrency balance can be wiped out by a computer crash if a backup copy of the holdings does not exist. Since prices are based on supply and demand, the rate at which a cryptocurrency can be exchanged for another currency can fluctuate widely.

The anonymous nature of cryptocurrency transactions makes them well-suited for a host of nefarious activities, such as money laundering and tax evasion. However, cryptocurrencyadvocates often value the anonymity highly.Cryptocurrencies are also considered by some economists to be a short-lived fad or speculative bubble – concerned especially that the currency units, such as Bitcoins, are not rooted in any material goods. Bitcoin has indeed experienced some rapid surges and collapses in value.

Cryptocurrencies are not immune to the threat of hacking. In Bitcoin’s short history, the company has been subject to over 40 thefts, including a few that exceeded $1 million in value. Still, many observers look at cryptocurrencies as hope that a currency can exist that preserves value, facilitates exchange, is more transportable than hard metals, and is outside the influence of central banks and governments.

Continued here:

Cryptocurrency Definition | Investopedia

What is Cryptocurrency: Everything You Need To Know …

[Updated September 13, 2018]

What is cryptocurrency: 21st-century unicorn or the money of the future?

This introduction explains the most important thing about cryptocurrencies. After youve read it, youll know more about it than most other humans.

Today cryptocurrencies (Buy Crypto) have become a global phenomenon known to most people. While still somehow geeky and not understood by most people, banks, governments and many companies are aware of its importance.

In 2016, youll have a hard time finding a major bank, a big accounting firm, a prominent software company or a government that did not research cryptocurrencies, publish a paper about it or start a so-called blockchain-project. (Take our blockchain courses to learn more about the blockchain)

Virtual currencies, perhaps most notably Bitcoin, have captured the imagination of some, struck fear among others, and confused the heck out of the rest of us. Thomas Carper, US-Senator

But beyond the noise and the press releases the overwhelming majority of people even bankers, consultants, scientists, and developers have a very limited knowledge about cryptocurrencies. They often fail to even understand the basic concepts.

So lets walk through the whole story. What are cryptocurrencies?

Few people know, but cryptocurrencies emerged as a side product of another invention. Satoshi Nakamoto, the unknown inventor of Bitcoin, the first and still most important cryptocurrency, never intended to invent a currency.

In his announcement of Bitcoin in late 2008, Satoshi said he developed A Peer-to-Peer Electronic Cash System.

His goal was to invent something; many people failed to create before digital cash.

The single most important part of Satoshis invention was that he found a way to build a decentralized digital cash system. In the nineties, there have been many attempts to create digital money, but they all failed.

After seeing all the centralized attempts fail, Satoshi tried to build a digital cash system without a central entity. Like a Peer-to-Peer network for file sharing.

This decision became the birth of cryptocurrency. They are the missing piece Satoshi found to realize digital cash. The reason why is a bit technical and complex, but if you get it, youll know more about cryptocurrencies than most people do. So, lets try to make it as easy as possible:

To realize digital cash you need a payment network with accounts, balances, and transaction. Thats easy to understand. One major problem every payment network has to solve is to prevent the so-called double spending: to prevent that one entity spends the same amount twice. Usually, this is done by a central server who keeps record about the balances.

In a decentralized network, you dont have this server. So you need every single entity of the network to do this job. Every peer in the network needs to have a list with all transactions to check if future transactions are valid or an attempt to double spend.

But how can these entities keep a consensus about this records?

If the peers of the network disagree about only one single, minor balance, everything is broken. They need an absolute consensus. Usually, you take, again, a central authority to declare the correct state of balances. But how can you achieve consensus without a central authority?

Nobody did know until Satoshi emerged out of nowhere. In fact, nobody believed it was even possible.

Satoshi proved it was. His major innovation was to achieve consensus without a central authority. Cryptocurrencies are a part of this solution the part that made the solution thrilling, fascinating and helped it to roll over the world.

If you take away all the noise around cryptocurrencies and reduce it to a simple definition, you find it to be just limited entries in a database no one can change without fulfilling specific conditions. This may seem ordinary, but, believe it or not: this is exactly how you can define a currency.

Take the money on your bank account: What is it more than entries in a database that can only be changed under specific conditions? You can even take physical coins and notes: What are they else than limited entries in a public physical database that can only be changed if you match the condition than you physically own the coins and notes? Money is all about a verified entry in some kind of database of accounts, balances, and transactions.

How miners create coins and confirm transactions

Lets have a look at the mechanism ruling the databases of cryptocurrencies. A cryptocurrency like Bitcoin consists of a network of peers. Every peer has a record of the complete history of all transactions and thus of the balance of every account.

A transaction is a file that says, Bob gives X Bitcoin to Alice and is signed by Bobs private key. Its basic public key cryptography, nothing special at all. After signed, a transaction is broadcasted in the network, sent from one peer to every other peer. This is basic p2p-technology. Nothing special at all, again.

The transaction is known almost immediately by the whole network. But only after a specific amount of time it gets confirmed.

Confirmation is a critical concept in cryptocurrencies. You could say that cryptocurrencies are all about confirmation.

As long as a transaction is unconfirmed, it is pending and can be forged. When a transaction is confirmed, it is set in stone. It is no longer forgeable, it cant be reversed, it is part of an immutable record of historical transactions: of the so-called blockchain.

Only miners can confirm transactions. This is their job in a cryptocurrency-network. They take transactions, stamp them as legit and spread them in the network. After a transaction is confirmed by a miner, every node has to add it to its database. It has become part of the blockchain.

For this job, the miners get rewarded with a token of the cryptocurrency, for example with Bitcoins. Since the miners activity is the single most important part of cryptocurrency-system we should stay for a moment and take a deeper look on it.

Principally everybody can be a miner. Since a decentralized network has no authority to delegate this task, a cryptocurrency needs some kind of mechanism to prevent one ruling party from abusing it. Imagine someone creates thousands of peers and spreads forged transactions. The system would break immediately.

So, Satoshi set the rule that the miners need to invest some work of their computers to qualify for this task. In fact, they have to find a hash a product of a cryptographic function that connects the new block with its predecessor. This is called the Proof-of-Work. In Bitcoin, it is based on the SHA 256 Hash algorithm.

You dont need to understand details about SHA 256. Its only important you know that it can be the basis of a cryptologic puzzle the miners compete to solve. After finding a solution, a miner can build a block and add it to the blockchain. As an incentive, he has the right to add a so-called coinbase transaction that gives him a specific number of Bitcoins. This is the only way to create valid Bitcoins.

Bitcoins can only be created ifminers solve a cryptographic puzzle. Since the difficulty of this puzzle increases the amount of computer power the whole miners invest, there is only a specific amount of cryptocurrency token that can be created in a given amount of time. This is part of the consensus no peer in the network can break.

If you really think about it, Bitcoin, as a decentralized network of peers which keep a consensus about accounts and balances, is more a currency than the numbers you see in your bank account. What are these numbers more than entries in a database a database which can be changed by people you dont see and by rules you dont know?

It is that narrative of human development under which we now have other fights to fight, and I would say in the realm of Bitcoin it is mainly the separation of money and state.

Erik Voorhees,cryptocurrency entrepreneur

Basically, cryptocurrencies are entries about token in decentralized consensus-databases. They are called CRYPTOcurrencies because the consensus-keeping process is secured by strong cryptography. Cryptocurrencies are built on cryptography. They are not secured by people or by trust, but by math. It is more probable that an asteroid falls on your house than that a bitcoin address is compromised.

Describing the properties of cryptocurrencies we need to separate between transactional and monetary properties. While most cryptocurrencies share a common set of properties, they are not carved in stone.

1.) Irreversible: After confirmation, a transaction cant be reversed. By nobody. And nobody means nobody. Not you, not your bank, not the president of the United States, not Satoshi, not your miner. Nobody. If you send money, you send it. Period. No one can help you, if you sent your funds to a scammer or if a hacker stole them from your computer. There is no safety net.

2.) Pseudonymous: Neither transactions nor accounts are connected to real-world identities. You receive Bitcoins on so-called addresses, which are randomly seeming chains of around 30 characters. While it is usually possible to analyze the transaction flow, it is not necessarily possible to connect the real world identity of users with those addresses.

3.) Fast and global: Transaction are propagated nearly instantly in the network and are confirmed in a couple of minutes. Since they happen in a global network of computers they are completely indifferent of your physical location. It doesnt matter if I send Bitcoin to my neighbour or to someone on the other side of the world.

4.) Secure: Cryptocurrency funds are locked in a public key cryptography system. Only the owner of the private key can send cryptocurrency. Strong cryptography and the magic of big numbers makes it impossible to break this scheme. A Bitcoin address is more secure than Fort Knox.

5.) Permissionless: You dont have to ask anybody to use cryptocurrency. Its just a software that everybody can download for free. After you installed it, you can receive and send Bitcoins or other cryptocurrencies. No one can prevent you. There is no gatekeeper.

1.) Controlled supply: Most cryptocurrencies limit the supply of the tokens. In Bitcoin, the supply decreases in time and will reach its final number some time around the year 2140. All cryptocurrencies control the supply of the token by a schedule written in the code. This means the monetary supply of a cryptocurrency in every given moment in the future can roughly be calculated today. There is no surprise.

2.) No debt but bearer: The Fiat-money on your bank account is created by debt, and the numbers, you see on your ledger represent nothing but debts. Its a system of IOU. Cryptocurrencies dont represent debts. They just represent themselves. They are money as hard as coins of gold.

To understand the revolutionary impact of cryptocurrencies you need to consider both properties. Bitcoin as a permissionless, irreversible and pseudonymous means of payment is an attack on the control of banks and governments over the monetary transactions of their citizens. You cant hinder someone to use Bitcoin, you cant prohibit someone to accept a payment, you cant undo a transaction.

As money with a limited, controlled supply that is not changeable by a government, a bank or any other central institution, cryptocurrencies attack the scope of the monetary policy. They take away the control central banks take on inflation or deflation by manipulating the monetary supply.

While its still fairly new and unstable relative to the gold standard, cryptocurrency is definitely gaining traction and will most certainly have more normalized uses in the next few years. Right now, in particular, its increasing in popularity with the post-election market uncertainty. The key will be in making it easy for large-scale adoption (as with anything involving crypto) including developing safeguards and protections for buyers/investors. I expect that within two years, well be in a place where people can shove their money under the virtual mattress through cryptocurrency, and theyll know that wherever they go, that money will be there. Sarah Granger, Author, and Speaker.

Mostly due to its revolutionary properties cryptocurrencies have become a success their inventor, Satoshi Nakamoto, didnt dare to dream ofit. While every other attempt to create a digital cash system didnt attract a critical mass of users, Bitcoin had something that provoked enthusiasm and fascination. Sometimes it feels more like religion than technology.

Cryptocurrencies are digital gold. Sound money that is secure from political influence. Money that promises to preserve and increase its value over time. Cryptocurrencies are also a fast and comfortable means of payment with a worldwide scope, and they are private and anonymous enough to serve as a means of payment for black markets and any other outlawed economic activity.

But while cryptocurrencies are more used for payment, its use as a means of speculation and a store of value dwarfs the payment aspects. Cryptocurrencies gave birth to an incredibly dynamic, fast-growing market for investors and speculators. Exchanges like Okcoin, poloniex or shapeshift enables the trade of hundreds of cryptocurrencies. Their daily trade volume exceeds that of major European stock exchanges.

At the same time, the praxis of Initial Coin Distribution (ICO), mostly facilitated by Ethereums smart contracts, gave life to incredibly successful crowdfunding projects, in which often an idea is enough to collect millions of dollars. In the case of The DAO it has been more than 150 million dollars.

In this rich ecosystem of coins and token, you experience extreme volatility. Its common that a coin gains 10 percent a day sometimes 100 percent just to lose the same at the next day. If you are lucky, your coins value grows up to 1000 percent in one or two weeks.

Follow this link:

What is Cryptocurrency: Everything You Need To Know …

Cryptocurrency Definition | Investopedia

What is a ‘Cryptocurrency’

A cryptocurrency is a digital or virtual currency that uses cryptography for security. A cryptocurrency is difficult to counterfeit because of this security feature. A defining feature of a cryptocurrency, and arguably its most endearing allure, is its organic nature; it is not issued by any central authority, rendering it theoretically immune to government interference or manipulation.

The first cryptocurrency to capture the public imagination was Bitcoin, which was launched in 2009 by an individual or group known under the pseudonym Satoshi Nakamoto. As of May 2018, there were over 17million bitcoins in circulation with a total market value of over $140 billion. Bitcoin’s success has spawned a number of competing cryptocurrencies, such as Litecoin, Namecoin and PPCoin.

Cryptocurrencies make it easier to transfer funds between two parties in a transaction; these transfers are facilitated through the use of public and private keys for security purposes. These fund transfers are done with minimal processing fees, allowing users to avoid the steep fees charged by most banks and financial institutions for wire transfers.

Central to the appeal and function of Bitcoin is the blockchaintechnologyit uses to store an online ledger of all the transactions that have ever been conducted using bitcoins, providing a data structure for this ledger that is exposed to a limited threat from hackers and can be copied across all computers running Bitcoin software. Every new block generated must be verified by the ledgers of each user on the market, making it almost impossible to forge transaction histories. Many experts see this blockchain as having important uses in technologies, such as online voting and crowdfunding, and major financial institutions such as JP Morgan Chase see potential in cryptocurrencies to lower transaction costs by making payment processing more efficient.

However, because cryptocurrencies are virtual and do not have a central repository, a digital cryptocurrency balance can be wiped out by a computer crash if a backup copy of the holdings does not exist. Since prices are based on supply and demand, the rate at which a cryptocurrency can be exchanged for another currency can fluctuate widely.

The anonymous nature of cryptocurrency transactions makes them well-suited for a host of nefarious activities, such as money laundering and tax evasion. However, cryptocurrencyadvocates often value the anonymity highly.Cryptocurrencies are also considered by some economists to be a short-lived fad or speculative bubble – concerned especially that the currency units, such as Bitcoins, are not rooted in any material goods. Bitcoin has indeed experienced some rapid surges and collapses in value.

Cryptocurrencies are not immune to the threat of hacking. In Bitcoin’s short history, the company has been subject to over 40 thefts, including a few that exceeded $1 million in value. Still, many observers look at cryptocurrencies as hope that a currency can exist that preserves value, facilitates exchange, is more transportable than hard metals, and is outside the influence of central banks and governments.

See original here:

Cryptocurrency Definition | Investopedia

What is Cryptocurrency: Everything You Need To Know …

[Updated September 13, 2018]

What is cryptocurrency: 21st-century unicorn or the money of the future?

This introduction explains the most important thing about cryptocurrencies. After youve read it, youll know more about it than most other humans.

Today cryptocurrencies (Buy Crypto) have become a global phenomenon known to most people. While still somehow geeky and not understood by most people, banks, governments and many companies are aware of its importance.

In 2016, youll have a hard time finding a major bank, a big accounting firm, a prominent software company or a government that did not research cryptocurrencies, publish a paper about it or start a so-called blockchain-project. (Take our blockchain courses to learn more about the blockchain)

Virtual currencies, perhaps most notably Bitcoin, have captured the imagination of some, struck fear among others, and confused the heck out of the rest of us. Thomas Carper, US-Senator

But beyond the noise and the press releases the overwhelming majority of people even bankers, consultants, scientists, and developers have a very limited knowledge about cryptocurrencies. They often fail to even understand the basic concepts.

So lets walk through the whole story. What are cryptocurrencies?

Few people know, but cryptocurrencies emerged as a side product of another invention. Satoshi Nakamoto, the unknown inventor of Bitcoin, the first and still most important cryptocurrency, never intended to invent a currency.

In his announcement of Bitcoin in late 2008, Satoshi said he developed A Peer-to-Peer Electronic Cash System.

His goal was to invent something; many people failed to create before digital cash.

The single most important part of Satoshis invention was that he found a way to build a decentralized digital cash system. In the nineties, there have been many attempts to create digital money, but they all failed.

After seeing all the centralized attempts fail, Satoshi tried to build a digital cash system without a central entity. Like a Peer-to-Peer network for file sharing.

This decision became the birth of cryptocurrency. They are the missing piece Satoshi found to realize digital cash. The reason why is a bit technical and complex, but if you get it, youll know more about cryptocurrencies than most people do. So, lets try to make it as easy as possible:

To realize digital cash you need a payment network with accounts, balances, and transaction. Thats easy to understand. One major problem every payment network has to solve is to prevent the so-called double spending: to prevent that one entity spends the same amount twice. Usually, this is done by a central server who keeps record about the balances.

In a decentralized network, you dont have this server. So you need every single entity of the network to do this job. Every peer in the network needs to have a list with all transactions to check if future transactions are valid or an attempt to double spend.

But how can these entities keep a consensus about this records?

If the peers of the network disagree about only one single, minor balance, everything is broken. They need an absolute consensus. Usually, you take, again, a central authority to declare the correct state of balances. But how can you achieve consensus without a central authority?

Nobody did know until Satoshi emerged out of nowhere. In fact, nobody believed it was even possible.

Satoshi proved it was. His major innovation was to achieve consensus without a central authority. Cryptocurrencies are a part of this solution the part that made the solution thrilling, fascinating and helped it to roll over the world.

If you take away all the noise around cryptocurrencies and reduce it to a simple definition, you find it to be just limited entries in a database no one can change without fulfilling specific conditions. This may seem ordinary, but, believe it or not: this is exactly how you can define a currency.

Take the money on your bank account: What is it more than entries in a database that can only be changed under specific conditions? You can even take physical coins and notes: What are they else than limited entries in a public physical database that can only be changed if you match the condition than you physically own the coins and notes? Money is all about a verified entry in some kind of database of accounts, balances, and transactions.

How miners create coins and confirm transactions

Lets have a look at the mechanism ruling the databases of cryptocurrencies. A cryptocurrency like Bitcoin consists of a network of peers. Every peer has a record of the complete history of all transactions and thus of the balance of every account.

A transaction is a file that says, Bob gives X Bitcoin to Alice and is signed by Bobs private key. Its basic public key cryptography, nothing special at all. After signed, a transaction is broadcasted in the network, sent from one peer to every other peer. This is basic p2p-technology. Nothing special at all, again.

The transaction is known almost immediately by the whole network. But only after a specific amount of time it gets confirmed.

Confirmation is a critical concept in cryptocurrencies. You could say that cryptocurrencies are all about confirmation.

As long as a transaction is unconfirmed, it is pending and can be forged. When a transaction is confirmed, it is set in stone. It is no longer forgeable, it cant be reversed, it is part of an immutable record of historical transactions: of the so-called blockchain.

Only miners can confirm transactions. This is their job in a cryptocurrency-network. They take transactions, stamp them as legit and spread them in the network. After a transaction is confirmed by a miner, every node has to add it to its database. It has become part of the blockchain.

For this job, the miners get rewarded with a token of the cryptocurrency, for example with Bitcoins. Since the miners activity is the single most important part of cryptocurrency-system we should stay for a moment and take a deeper look on it.

Principally everybody can be a miner. Since a decentralized network has no authority to delegate this task, a cryptocurrency needs some kind of mechanism to prevent one ruling party from abusing it. Imagine someone creates thousands of peers and spreads forged transactions. The system would break immediately.

So, Satoshi set the rule that the miners need to invest some work of their computers to qualify for this task. In fact, they have to find a hash a product of a cryptographic function that connects the new block with its predecessor. This is called the Proof-of-Work. In Bitcoin, it is based on the SHA 256 Hash algorithm.

You dont need to understand details about SHA 256. Its only important you know that it can be the basis of a cryptologic puzzle the miners compete to solve. After finding a solution, a miner can build a block and add it to the blockchain. As an incentive, he has the right to add a so-called coinbase transaction that gives him a specific number of Bitcoins. This is the only way to create valid Bitcoins.

Bitcoins can only be created ifminers solve a cryptographic puzzle. Since the difficulty of this puzzle increases the amount of computer power the whole miners invest, there is only a specific amount of cryptocurrency token that can be created in a given amount of time. This is part of the consensus no peer in the network can break.

If you really think about it, Bitcoin, as a decentralized network of peers which keep a consensus about accounts and balances, is more a currency than the numbers you see in your bank account. What are these numbers more than entries in a database a database which can be changed by people you dont see and by rules you dont know?

It is that narrative of human development under which we now have other fights to fight, and I would say in the realm of Bitcoin it is mainly the separation of money and state.

Erik Voorhees,cryptocurrency entrepreneur

Basically, cryptocurrencies are entries about token in decentralized consensus-databases. They are called CRYPTOcurrencies because the consensus-keeping process is secured by strong cryptography. Cryptocurrencies are built on cryptography. They are not secured by people or by trust, but by math. It is more probable that an asteroid falls on your house than that a bitcoin address is compromised.

Describing the properties of cryptocurrencies we need to separate between transactional and monetary properties. While most cryptocurrencies share a common set of properties, they are not carved in stone.

1.) Irreversible: After confirmation, a transaction cant be reversed. By nobody. And nobody means nobody. Not you, not your bank, not the president of the United States, not Satoshi, not your miner. Nobody. If you send money, you send it. Period. No one can help you, if you sent your funds to a scammer or if a hacker stole them from your computer. There is no safety net.

2.) Pseudonymous: Neither transactions nor accounts are connected to real-world identities. You receive Bitcoins on so-called addresses, which are randomly seeming chains of around 30 characters. While it is usually possible to analyze the transaction flow, it is not necessarily possible to connect the real world identity of users with those addresses.

3.) Fast and global: Transaction are propagated nearly instantly in the network and are confirmed in a couple of minutes. Since they happen in a global network of computers they are completely indifferent of your physical location. It doesnt matter if I send Bitcoin to my neighbour or to someone on the other side of the world.

4.) Secure: Cryptocurrency funds are locked in a public key cryptography system. Only the owner of the private key can send cryptocurrency. Strong cryptography and the magic of big numbers makes it impossible to break this scheme. A Bitcoin address is more secure than Fort Knox.

5.) Permissionless: You dont have to ask anybody to use cryptocurrency. Its just a software that everybody can download for free. After you installed it, you can receive and send Bitcoins or other cryptocurrencies. No one can prevent you. There is no gatekeeper.

1.) Controlled supply: Most cryptocurrencies limit the supply of the tokens. In Bitcoin, the supply decreases in time and will reach its final number some time around the year 2140. All cryptocurrencies control the supply of the token by a schedule written in the code. This means the monetary supply of a cryptocurrency in every given moment in the future can roughly be calculated today. There is no surprise.

2.) No debt but bearer: The Fiat-money on your bank account is created by debt, and the numbers, you see on your ledger represent nothing but debts. Its a system of IOU. Cryptocurrencies dont represent debts. They just represent themselves. They are money as hard as coins of gold.

To understand the revolutionary impact of cryptocurrencies you need to consider both properties. Bitcoin as a permissionless, irreversible and pseudonymous means of payment is an attack on the control of banks and governments over the monetary transactions of their citizens. You cant hinder someone to use Bitcoin, you cant prohibit someone to accept a payment, you cant undo a transaction.

As money with a limited, controlled supply that is not changeable by a government, a bank or any other central institution, cryptocurrencies attack the scope of the monetary policy. They take away the control central banks take on inflation or deflation by manipulating the monetary supply.

While its still fairly new and unstable relative to the gold standard, cryptocurrency is definitely gaining traction and will most certainly have more normalized uses in the next few years. Right now, in particular, its increasing in popularity with the post-election market uncertainty. The key will be in making it easy for large-scale adoption (as with anything involving crypto) including developing safeguards and protections for buyers/investors. I expect that within two years, well be in a place where people can shove their money under the virtual mattress through cryptocurrency, and theyll know that wherever they go, that money will be there. Sarah Granger, Author, and Speaker.

Mostly due to its revolutionary properties cryptocurrencies have become a success their inventor, Satoshi Nakamoto, didnt dare to dream ofit. While every other attempt to create a digital cash system didnt attract a critical mass of users, Bitcoin had something that provoked enthusiasm and fascination. Sometimes it feels more like religion than technology.

Cryptocurrencies are digital gold. Sound money that is secure from political influence. Money that promises to preserve and increase its value over time. Cryptocurrencies are also a fast and comfortable means of payment with a worldwide scope, and they are private and anonymous enough to serve as a means of payment for black markets and any other outlawed economic activity.

But while cryptocurrencies are more used for payment, its use as a means of speculation and a store of value dwarfs the payment aspects. Cryptocurrencies gave birth to an incredibly dynamic, fast-growing market for investors and speculators. Exchanges like Okcoin, poloniex or shapeshift enables the trade of hundreds of cryptocurrencies. Their daily trade volume exceeds that of major European stock exchanges.

At the same time, the praxis of Initial Coin Distribution (ICO), mostly facilitated by Ethereums smart contracts, gave life to incredibly successful crowdfunding projects, in which often an idea is enough to collect millions of dollars. In the case of The DAO it has been more than 150 million dollars.

In this rich ecosystem of coins and token, you experience extreme volatility. Its common that a coin gains 10 percent a day sometimes 100 percent just to lose the same at the next day. If you are lucky, your coins value grows up to 1000 percent in one or two weeks.

More here:

What is Cryptocurrency: Everything You Need To Know …

What is Cryptocurrency: Everything You Need To Know [Ultimate …

[Updated September 13, 2018]

What is cryptocurrency: 21st-century unicorn or the money of the future?

This introduction explains the most important thing about cryptocurrencies. After youve read it, youll know more about it than most other humans.

Today cryptocurrencies (Buy Crypto) have become a global phenomenon known to most people. While still somehow geeky and not understood by most people, banks, governments and many companies are aware of its importance.

In 2016, youll have a hard time finding a major bank, a big accounting firm, a prominent software company or a government that did not research cryptocurrencies, publish a paper about it or start a so-called blockchain-project. (Take our blockchain courses to learn more about the blockchain)

Virtual currencies, perhaps most notably Bitcoin, have captured the imagination of some, struck fear among others, and confused the heck out of the rest of us. Thomas Carper, US-Senator

But beyond the noise and the press releases the overwhelming majority of people even bankers, consultants, scientists, and developers have a very limited knowledge about cryptocurrencies. They often fail to even understand the basic concepts.

So lets walk through the whole story. What are cryptocurrencies?

Few people know, but cryptocurrencies emerged as a side product of another invention. Satoshi Nakamoto, the unknown inventor of Bitcoin, the first and still most important cryptocurrency, never intended to invent a currency.

In his announcement of Bitcoin in late 2008, Satoshi said he developed A Peer-to-Peer Electronic Cash System.

His goal was to invent something; many people failed to create before digital cash.

The single most important part of Satoshis invention was that he found a way to build a decentralized digital cash system. In the nineties, there have been many attempts to create digital money, but they all failed.

After seeing all the centralized attempts fail, Satoshi tried to build a digital cash system without a central entity. Like a Peer-to-Peer network for file sharing.

This decision became the birth of cryptocurrency. They are the missing piece Satoshi found to realize digital cash. The reason why is a bit technical and complex, but if you get it, youll know more about cryptocurrencies than most people do. So, lets try to make it as easy as possible:

To realize digital cash you need a payment network with accounts, balances, and transaction. Thats easy to understand. One major problem every payment network has to solve is to prevent the so-called double spending: to prevent that one entity spends the same amount twice. Usually, this is done by a central server who keeps record about the balances.

In a decentralized network, you dont have this server. So you need every single entity of the network to do this job. Every peer in the network needs to have a list with all transactions to check if future transactions are valid or an attempt to double spend.

But how can these entities keep a consensus about this records?

If the peers of the network disagree about only one single, minor balance, everything is broken. They need an absolute consensus. Usually, you take, again, a central authority to declare the correct state of balances. But how can you achieve consensus without a central authority?

Nobody did know until Satoshi emerged out of nowhere. In fact, nobody believed it was even possible.

Satoshi proved it was. His major innovation was to achieve consensus without a central authority. Cryptocurrencies are a part of this solution the part that made the solution thrilling, fascinating and helped it to roll over the world.

If you take away all the noise around cryptocurrencies and reduce it to a simple definition, you find it to be just limited entries in a database no one can change without fulfilling specific conditions. This may seem ordinary, but, believe it or not: this is exactly how you can define a currency.

Take the money on your bank account: What is it more than entries in a database that can only be changed under specific conditions? You can even take physical coins and notes: What are they else than limited entries in a public physical database that can only be changed if you match the condition than you physically own the coins and notes? Money is all about a verified entry in some kind of database of accounts, balances, and transactions.

How miners create coins and confirm transactions

Lets have a look at the mechanism ruling the databases of cryptocurrencies. A cryptocurrency like Bitcoin consists of a network of peers. Every peer has a record of the complete history of all transactions and thus of the balance of every account.

A transaction is a file that says, Bob gives X Bitcoin to Alice and is signed by Bobs private key. Its basic public key cryptography, nothing special at all. After signed, a transaction is broadcasted in the network, sent from one peer to every other peer. This is basic p2p-technology. Nothing special at all, again.

The transaction is known almost immediately by the whole network. But only after a specific amount of time it gets confirmed.

Confirmation is a critical concept in cryptocurrencies. You could say that cryptocurrencies are all about confirmation.

As long as a transaction is unconfirmed, it is pending and can be forged. When a transaction is confirmed, it is set in stone. It is no longer forgeable, it cant be reversed, it is part of an immutable record of historical transactions: of the so-called blockchain.

Only miners can confirm transactions. This is their job in a cryptocurrency-network. They take transactions, stamp them as legit and spread them in the network. After a transaction is confirmed by a miner, every node has to add it to its database. It has become part of the blockchain.

For this job, the miners get rewarded with a token of the cryptocurrency, for example with Bitcoins. Since the miners activity is the single most important part of cryptocurrency-system we should stay for a moment and take a deeper look on it.

Principally everybody can be a miner. Since a decentralized network has no authority to delegate this task, a cryptocurrency needs some kind of mechanism to prevent one ruling party from abusing it. Imagine someone creates thousands of peers and spreads forged transactions. The system would break immediately.

So, Satoshi set the rule that the miners need to invest some work of their computers to qualify for this task. In fact, they have to find a hash a product of a cryptographic function that connects the new block with its predecessor. This is called the Proof-of-Work. In Bitcoin, it is based on the SHA 256 Hash algorithm.

You dont need to understand details about SHA 256. Its only important you know that it can be the basis of a cryptologic puzzle the miners compete to solve. After finding a solution, a miner can build a block and add it to the blockchain. As an incentive, he has the right to add a so-called coinbase transaction that gives him a specific number of Bitcoins. This is the only way to create valid Bitcoins.

Bitcoins can only be created ifminers solve a cryptographic puzzle. Since the difficulty of this puzzle increases the amount of computer power the whole miners invest, there is only a specific amount of cryptocurrency token that can be created in a given amount of time. This is part of the consensus no peer in the network can break.

If you really think about it, Bitcoin, as a decentralized network of peers which keep a consensus about accounts and balances, is more a currency than the numbers you see in your bank account. What are these numbers more than entries in a database a database which can be changed by people you dont see and by rules you dont know?

It is that narrative of human development under which we now have other fights to fight, and I would say in the realm of Bitcoin it is mainly the separation of money and state.

Erik Voorhees,cryptocurrency entrepreneur

Basically, cryptocurrencies are entries about token in decentralized consensus-databases. They are called CRYPTOcurrencies because the consensus-keeping process is secured by strong cryptography. Cryptocurrencies are built on cryptography. They are not secured by people or by trust, but by math. It is more probable that an asteroid falls on your house than that a bitcoin address is compromised.

Describing the properties of cryptocurrencies we need to separate between transactional and monetary properties. While most cryptocurrencies share a common set of properties, they are not carved in stone.

1.) Irreversible: After confirmation, a transaction cant be reversed. By nobody. And nobody means nobody. Not you, not your bank, not the president of the United States, not Satoshi, not your miner. Nobody. If you send money, you send it. Period. No one can help you, if you sent your funds to a scammer or if a hacker stole them from your computer. There is no safety net.

2.) Pseudonymous: Neither transactions nor accounts are connected to real-world identities. You receive Bitcoins on so-called addresses, which are randomly seeming chains of around 30 characters. While it is usually possible to analyze the transaction flow, it is not necessarily possible to connect the real world identity of users with those addresses.

3.) Fast and global: Transaction are propagated nearly instantly in the network and are confirmed in a couple of minutes. Since they happen in a global network of computers they are completely indifferent of your physical location. It doesnt matter if I send Bitcoin to my neighbour or to someone on the other side of the world.

4.) Secure: Cryptocurrency funds are locked in a public key cryptography system. Only the owner of the private key can send cryptocurrency. Strong cryptography and the magic of big numbers makes it impossible to break this scheme. A Bitcoin address is more secure than Fort Knox.

5.) Permissionless: You dont have to ask anybody to use cryptocurrency. Its just a software that everybody can download for free. After you installed it, you can receive and send Bitcoins or other cryptocurrencies. No one can prevent you. There is no gatekeeper.

1.) Controlled supply: Most cryptocurrencies limit the supply of the tokens. In Bitcoin, the supply decreases in time and will reach its final number some time around the year 2140. All cryptocurrencies control the supply of the token by a schedule written in the code. This means the monetary supply of a cryptocurrency in every given moment in the future can roughly be calculated today. There is no surprise.

2.) No debt but bearer: The Fiat-money on your bank account is created by debt, and the numbers, you see on your ledger represent nothing but debts. Its a system of IOU. Cryptocurrencies dont represent debts. They just represent themselves. They are money as hard as coins of gold.

To understand the revolutionary impact of cryptocurrencies you need to consider both properties. Bitcoin as a permissionless, irreversible and pseudonymous means of payment is an attack on the control of banks and governments over the monetary transactions of their citizens. You cant hinder someone to use Bitcoin, you cant prohibit someone to accept a payment, you cant undo a transaction.

As money with a limited, controlled supply that is not changeable by a government, a bank or any other central institution, cryptocurrencies attack the scope of the monetary policy. They take away the control central banks take on inflation or deflation by manipulating the monetary supply.

While its still fairly new and unstable relative to the gold standard, cryptocurrency is definitely gaining traction and will most certainly have more normalized uses in the next few years. Right now, in particular, its increasing in popularity with the post-election market uncertainty. The key will be in making it easy for large-scale adoption (as with anything involving crypto) including developing safeguards and protections for buyers/investors. I expect that within two years, well be in a place where people can shove their money under the virtual mattress through cryptocurrency, and theyll know that wherever they go, that money will be there. Sarah Granger, Author, and Speaker.

Mostly due to its revolutionary properties cryptocurrencies have become a success their inventor, Satoshi Nakamoto, didnt dare to dream ofit. While every other attempt to create a digital cash system didnt attract a critical mass of users, Bitcoin had something that provoked enthusiasm and fascination. Sometimes it feels more like religion than technology.

Cryptocurrencies are digital gold. Sound money that is secure from political influence. Money that promises to preserve and increase its value over time. Cryptocurrencies are also a fast and comfortable means of payment with a worldwide scope, and they are private and anonymous enough to serve as a means of payment for black markets and any other outlawed economic activity.

But while cryptocurrencies are more used for payment, its use as a means of speculation and a store of value dwarfs the payment aspects. Cryptocurrencies gave birth to an incredibly dynamic, fast-growing market for investors and speculators. Exchanges like Okcoin, poloniex or shapeshift enables the trade of hundreds of cryptocurrencies. Their daily trade volume exceeds that of major European stock exchanges.

At the same time, the praxis of Initial Coin Distribution (ICO), mostly facilitated by Ethereums smart contracts, gave life to incredibly successful crowdfunding projects, in which often an idea is enough to collect millions of dollars. In the case of The DAO it has been more than 150 million dollars.

In this rich ecosystem of coins and token, you experience extreme volatility. Its common that a coin gains 10 percent a day sometimes 100 percent just to lose the same at the next day. If you are lucky, your coins value grows up to 1000 percent in one or two weeks.

Originally posted here:

What is Cryptocurrency: Everything You Need To Know [Ultimate …

List of cryptocurrencies – Wikipedia

ReleaseStatusCurrencySymbolFounder(s)Hash algorithmProgramming language of implementationCryptocurrency blockchain (PoS, PoW, or other)Notes2009ActiveBitcoinBTC,[4][5] XBT, Satoshi Nakamoto[nt 1]SHA-256d[6][7]C++[8]PoW[7][9]The first decentralized ledger currency. Cryptocurrency with the highest market capitalization.2011ActiveLitecoinLTC, Charlie LeeScryptC++[10]PoWThe first cryptocurrency to use Scrypt as a hashing algorithm.2011ActiveNamecoinNMCVincent Durham[11][12]SHA-256dC++[13]PoWAlso acts as an alternative, decentralized DNS.2011ActiveSwiftCoinSTCDaniel BrunoSHA-256PoWFirst block chain to support currency creation by interest paid on debt. Solidus Bond proto smart-contract. One of the first digital coins patented in the US. First block chain to support encrypted mail with attachments.2012ActiveBytecoinBCNCryptoNoteC++[14]PoWFirst cryptocurrency based on the CryptoNote algorithm. Focused on user privacy through impassive and anonymous transactions2012ActivePeercoinPPCSunny King(pseudonym)[15]SHA-256d[16]C++[17]PoW & PoSThe first cryptocurrency to use POW and POS functions.2013ActiveDogecoinDOGE, XDG, Jackson Palmer& Billy Markus[18]Scrypt[19]C++[20]PoWBased on an internet meme.2013[21]ActiveFeathercoinFTC, Peter Bushnell, Brasenose College of Oxford UniversityNeoScryptC++[22]N/AApprox. 60 seconds block time2013[23][24]ActiveGridcoinGRCRob Hlford [25]ScryptC++[26]Decentralized PoSThe first cryptocurrency linked to citizen science through the Berkeley Open Infrastructure for Network Computing[27][28]2013ActivePrimecoinXPMSunny King(pseudonym)[15]1CC/2CC/TWN[29]TypeScript, C++[30]PoW[29]Uses the finding of prime chains composed of Cunningham chains and bi-twin chains for proof-of-work, which can lead to useful byproducts.2013ActiveRipple[31][32][33]XRP[33]Chris Larsen &Jed McCaleb[34]ECDSA[35]C++[36]”Consensus”Designed for peer to peer debt transfer. Not based on bitcoin.2013ActiveNxtNXTBCNext(pseudonym)SHA-256d[37]Java[38]PoSSpecifically designed as a flexible platform to build applications and financial services around its protocol.2014ActiveAuroracoinAURBaldur Odinsson(pseudonym)[39]ScryptC++[40]PoWCreated as an alternative to fiat currency in Iceland.2014InactiveCoinyeKOI, COYEScryptPoWUsed American hip hop artist Kanye West as its mascot, abandoned after trademark lawsuit.2014ActiveDashDASHEvan Duffield &Kyle Hagan[41]X11C++[42]PoW & Proof of Service[nt 2]A bitcoin-based currency featuring instant transactions, decentralized governance and budgeting, and private transactions.2014ActiveNEONEODa Hongfei & Erik ZhangSHA-256 & RIPEMD160C#[43]dBFTChinese based cryptocurrency (formerly ANT Shares which produce ANT Coins) name change August 2017 to NEO and GAs, these enable the development of digital assets and smart contracts.2014ActiveMazaCoinMZCBTC Oyate InitiativeSHA-256dC++[44]PoWThe underlying software is derived from that of another cryptocurrency, ZetaCoin.2014ActiveMoneroXMRMonero Core TeamCryptoNight[45]C++[46]PoWPrivacy-centric coin using the CryptoNote protocol with improvements for scalability and decentralization.2014ActiveNEMXEMUtopianFuture (pseudonym)SHA3-512Java[47]POIThe first hybrid public/private blockchain solution built from scratch, and first to use the Proof of Importance algorithm using EigenTrust++ reputation system.2014ActivePotCoinPOTPotcoin core dev teamScryptC++[48]PoSDeveloped to service the legalized cannabis industry2014ActiveSynereo AMPAMPDor Konforty & Greg Meredith[49]PoSScala, Java[50]PoSTrying to create a world computer, Synereos 2.0 tech stack incorporates all faculties needed to support decentralized computation without central servers.[51]2014ActiveTitcoinTITEdward Mansfield & Richard Allen[52]SHA-256dTypeScript, C++[53]PoWThe first cryptocurrency to be nominated for a major adult industry award.[54]2014ActiveVergeXVGSunerokScrypt, x17, groestl, blake2s, and lyra2rev2C, C++[55]PoW2014ActiveStellarXLMJed McCalebStellar Consensus Protocol (SCP) [56]C, C++[57]Stellar Consensus Protocol (SCP) [56]Open-source, decentralized global financial network. The usage is for remittances, micropayments, services for the underbanked, mobile money/branches and professional setups.2014ActiveVertcoinVTCBushidoLyra2RE[58]C++[59]PoWNext-gen ASIC resistance and first to implement stealth addresses.2015ActiveEther or “Ethereum”ETHVitalik Buterin[60]Ethash[61]C++, Go[62]PoWSupports Turing-complete smart contracts.2015ActiveEthereum ClassicETCEthash[61]PoWAn alternative version of Ethereum[63] whose blockchain does not include the DAO Hard-fork.[64][65] Supports Turing-complete smart contracts.2015ActiveTetherUSDTJan Ludovicus van der Velde[66]Omnicore [67]PoWTether claims to be backed by USD at a 1 to 1 ratio. The company has been unable to produce promised audits.[68]2015InactiveNeucoinNEUDaniel KaufmanSHA-256PoW & PoSBased on Peercoin, attempted to improve security. Project dissolved in November 2016.2016ActiveDecredDCRBlake-256Go[69]PoW/PoS HybridBuilt in governance and hybrid PoW/PoS.2016ActiveLiskLSKMax Kordek & Oliver BeddowsPoSJavaScript[70]PoSOpen blockchain platform written entirely in JavaScript, enabling developers to create and manage decentralized, and scalable blockchain applications, including custom tokens, on sidechains.[71]2016ActiveZcashZECZooko WilcoxEquihashC++[72]PoWThe first open, permissionless financial system employing zero-knowledge security.2017InactiveBitConnectBCCBitConnect was described as an open source, all-in-one bitcoin and crypto community platform but was later described as a Ponzi scheme2017ActiveBitcoin CashBCH[73]SHA-256dPoWHard fork from Bitcoin, Increased Block size from 1mb to 8mb2017ActiveEOS.IOEOSDan LarimerWebAssembly, Rust, C, C++[74]delegated PoSFeeless Smart contract platform for decentralized applications and decentralized autonomous corporations with a block time of 500 ms.[74]2018ActiveCardanoADACharles Hoskinson & Jeremy WoodHaskell[75]Ouroboros PoS2018InactiveKodakCoinKodak and WENN DigitalEthash[76]KodakCoin is a “photographer-centric” blockchain cryptocurrency used for payments for licensing photographs.2018InactivePetroVenezuela GovernmentonixCoin[77]C++[78]First cryptocurrency backed by Venezuela’s reserves of oil. As of August2018[update] it does not appear to function as a currency.[79]2018ActiveBitcoin PrivateBTCPEquihashC++[80]PoWprivate, decentralized, fast, open source, community-driven coin implementing zkSNARK for privacy protection/anonymous payments. Hardfork (co-fork) of BTC and ZClassic

View post:

List of cryptocurrencies – Wikipedia

Cryptocurrency Definition | Investopedia

What is a ‘Cryptocurrency’

A cryptocurrency is a digital or virtual currency that uses cryptography for security. A cryptocurrency is difficult to counterfeit because of this security feature. A defining feature of a cryptocurrency, and arguably its most endearing allure, is its organic nature; it is not issued by any central authority, rendering it theoretically immune to government interference or manipulation.

The first cryptocurrency to capture the public imagination was Bitcoin, which was launched in 2009 by an individual or group known under the pseudonym Satoshi Nakamoto. As of May 2018, there were over 17million bitcoins in circulation with a total market value of over $140 billion. Bitcoin’s success has spawned a number of competing cryptocurrencies, such as Litecoin, Namecoin and PPCoin.

Cryptocurrencies make it easier to transfer funds between two parties in a transaction; these transfers are facilitated through the use of public and private keys for security purposes. These fund transfers are done with minimal processing fees, allowing users to avoid the steep fees charged by most banks and financial institutions for wire transfers.

Central to the appeal and function of Bitcoin is the blockchaintechnologyit uses to store an online ledger of all the transactions that have ever been conducted using bitcoins, providing a data structure for this ledger that is exposed to a limited threat from hackers and can be copied across all computers running Bitcoin software. Every new block generated must be verified by the ledgers of each user on the market, making it almost impossible to forge transaction histories. Many experts see this blockchain as having important uses in technologies, such as online voting and crowdfunding, and major financial institutions such as JP Morgan Chase see potential in cryptocurrencies to lower transaction costs by making payment processing more efficient.

However, because cryptocurrencies are virtual and do not have a central repository, a digital cryptocurrency balance can be wiped out by a computer crash if a backup copy of the holdings does not exist. Since prices are based on supply and demand, the rate at which a cryptocurrency can be exchanged for another currency can fluctuate widely.

The anonymous nature of cryptocurrency transactions makes them well-suited for a host of nefarious activities, such as money laundering and tax evasion. However, cryptocurrencyadvocates often value the anonymity highly.Cryptocurrencies are also considered by some economists to be a short-lived fad or speculative bubble – concerned especially that the currency units, such as Bitcoins, are not rooted in any material goods. Bitcoin has indeed experienced some rapid surges and collapses in value.

Cryptocurrencies are not immune to the threat of hacking. In Bitcoin’s short history, the company has been subject to over 40 thefts, including a few that exceeded $1 million in value. Still, many observers look at cryptocurrencies as hope that a currency can exist that preserves value, facilitates exchange, is more transportable than hard metals, and is outside the influence of central banks and governments.

See the article here:

Cryptocurrency Definition | Investopedia

Cryptocurrency Rankings | CryptoSlate

Cryptocurrency Rankings | CryptoSlate

GLOBAL MARKET CAP $221.54B

24H VOLUME $14.15B

COINBASE INDEX 2522.43

BTC DOMINANCE 51.37%

TOTAL CRYPTOS 2004

TOTAL TOKENS 1,123

TOTAL PoW COINS 589

TOTAL PoS COINS 423

Displaying 1-100 of 2004 total cryptos

A worldwide cryptocurrency and digital payment system

Decentralized platform that runs smart contracts

The digital asset for payments

Peer-to-peer electronic cash

Infrastructure for decentralized applications

Connecting banks, payments systems and people

Peer-to-peer Internet currency

Fiat currencies on the Bitcoin blockchain

Platform for complex programmable transfers of value

A secure, private, and untraceable cryptocurrency

Open-source distributed ledger protocol

Digital cash

Infrastructure for a truly decentralized Internet

Distributed smart economy network

Decentralized platform that runs smart contracts

Digital asset exchange

Blockchain built for enterprise

A self-amending cryptographic ledger

Product ID Management

Peer-to-peer digital currency

Cryptocurrency with groundbreaking privacy

Ethereum-based financial technology

Bitcoin fork using Equihash algorithm

Private untraceable cryptocurrency

Blockchain application platform for Javascript developers

High-Performance Public Multi-Chain Project

Decentralized autonomous organization on the Ethereum blockchain

Business-ready blockchain

Powering decentralized exchange

Open and progressive cryptocurrency

Low-latency payment platform

Decentralized exchange

Scalable blockchain platform with througput of thousands of TX/s

Decentralized global blockchain

Interconnecting blockchain network

Scalable blockchain platform

Decentralized private cloud

Blockchain based social media platform

Secure and anonymous cryptocurrency

Blockchain-powered customizable tokens platform

Making cryptocurrency accessible to everyone

Interactive protocol of multiple byte assets

Decentralized platform based on blockchain technology

The mobile cryptocurrency, wallet & mining

Enterprise blockchain development platform

Worldwide supercomputer

Decentralized prediction market

Distributed hosting platform

Ethereum mobile client

Open source blockchain technology suite

Decentralized tip platform

Traceable business ecosystem

Token on the Nxt blockchain

Global blockchain acquiring

International blockchain assets exchange

Infrastructure for online service providers

Invoice and trade finance platform

Decentralized oracle network

Social media tokens that reward all content creators

A Revolutionary Blockchain Architecture

The world’s first autonomous data network

Private cross-chain smart contracts

USD-backed stablecoin you can exchange and trust

Made in Japan crypto currencies

Multi-tier blockchain system

A parallel, dual-chain ecosystem

Decentralized cloud computing network

Blockchain-powered loyalty point system

Scalable blockchain applications

Token for creating smart tokens

Ethereum-based token for dental Industry

Autonomous trading investment platform

Decentralized gaming platform

First Japanese cryptocurrency

End-to-end encrypted communications platform

World’s first decentralized data marketplace

A blockchain-based virtual reality world

Providing liquidity to the crypto economy

Tokenized gold on Ethereum

All-in-one blockchain solutions

Cryptocurrency debit card

Creating a bright and colorful blockchain world

Empowering the decentralization of online marketplaces

Accelerating the world’s transition to cryptocurrency

Advanced blockchain platform

Next generation video delivery powered by you

Mobile blockchain network

Democratization of power

Blockchain platform for large-scale online games and social apps

Global Decentralized Marketplace for Virtual Assets

Read this article:

Cryptocurrency Rankings | CryptoSlate

Cryptocurrency News – Bitcoin, Ethereum, NEO, ICO startups

The blockchain market, cryptocurrency and ICO is growing at a tremendous rate. Every day in this area lots of information guides, new articles and analytics are published. To keep track of everything and find really important and useful materials, you need to spend a lot of time.

We are ready to do this for you! Our telegram channel ICOtoday is the source of the most necessary and up-to-date information about ICO and cryptocurrencies.

Looking at the ICO and want to figure out what’s what for? On our channel you will find educational materials for those who make the first steps in crypto investment.

Want to invest in start-ups? We publish practical recommendations for investors, as well as an ICO calendar.

Are you interested in the current agenda? With a daily digest of news and analytics, you will always be aware.

Looking for authoring content? We are preparing our own materials, reviews and analytics.

Channel ICOtoday:

ICOtoday channel is the most important in one place.

Read more from the original source:

Cryptocurrency News – Bitcoin, Ethereum, NEO, ICO startups

Cryptocurrency news and discussions. r/CryptoCurrency

Welcome to the Daily Discussion Megathread. Please read the disclaimer, guidelines, and rules before participating.

To see the latest Weekly Skeptics thread, click here

To see the latest Weekly Support Discussion, click here

Disclaimer:

Though karma rules still apply, moderation is less stringent on this thread than on the rest of the sub. Therefore, consider all information posted here with several liberal heaps of salt, and always cross check any information you may read on this thread with known sources. Any trade information posted in this open thread may be highly misleading, and could be an attempt to manipulate new readers by known “pump and dump (PnD) groups” for their own profit. BEWARE of such practices and excercise utmost caution before acting on any trade tip mentioned here.

PnDs and brigades are not sanctioned by the mod team in any way as they violate rule III. If you discover this thread is being used for these activities, bring it to the mod teams’s notice via the modmail.

Rules:

All sub rules apply in this thread. The prior exemption for karma and age requirements is no longer in effect.

Discussion topics must be related to cryptocurrency.

Comments will be sorted by newest first.

Guidelines:

Questions, debates, meta issues, etc are all welcome.

Breaking news should be posted separately from this thread.

Resources and Tools:

To view live streaming comments for this thread, click here. Account permissions are required to post comments through Reddit-Stream.com.

Click the RES subscribe button below if you would like to be notified when comments are posted.

Consider checking out our Weekly Skeptics Thread for discussion focused solely on critical analysis. Click here and select the latest thread on the search listing.

Thank you in advance for your participation. Enjoy!

See more here:

Cryptocurrency news and discussions. r/CryptoCurrency

Cryptocurrency Prices Live, Cryptocurrency Index, Charts …

The cryptocurrenies shown here are just the most popular ones, and this means not all of them can be found on this table. Full list, more then 1300 cryptos can be found, by clicking LOAD MORE button at the bottom of the chart, or just type any cryptocurrency symbol or name in the search box at the top of the chart.

To make things easier, this page displays the logos and the symbols beside the name of the cryptocurrency it is therefore impossible to make a mistake when looking at the numbers. The logos, names, and symbols appear in the first, second and third column, respectively. The names and symbols of the listed cryptocurrencies are actually links. Clicking on these links a new page with individual data about the chosen coin will be displayed, though it might take some time for the data to load.

Go here to see the original:

Cryptocurrency Prices Live, Cryptocurrency Index, Charts …


12345...102030...