Crypto currency is gradually making a revolution in the world of finance, in many respects it is the merit of the technology of blockades, which is traditionally associated with Bitcoin. In understanding the crypto currency, the terms are not always used correctly, and the understanding of computer technology is not always achieved. For example, that the block is not a crypto currency or a financial database even though it in turn affects how works.
Therefore, we have collected the main points that will help you understand the theory and help you figure out how to apply all this in the business model.
Block is the chronological database, i.e. a database in which the time when the record was made is inextricably linked to the data itself. The only meaning of using blockade is to get rid of intermediaries in agreements between people, for example, banks (the bank guarantees that the money from your account is not hit twice, and so on), in legal - courts and so on.
Bitcoin is not any money yet, but rather a precious commodity. There is no money with such insane volatility. The crypto currency allows you to record only information about transactions between different accounts with bitcoins, that is, you may potentially replace banks (or similar systems).
The only way to authorize any crypto currency transactions to date is an electronic signature. Only on it all participants of the system can verify the data source.
Mining is the basis for the integrity and reliability of the Bitcoin system or any other crypto currency. The miners get all what they should expect like protection from false information, virus attacks and the most important, the confirmation of every single transaction.
The Financial Times writes about the ICO as "an unregulated release of crypto-currencies, where investors can earn bitcoins and other crypto-currencies." ICO is a mechanism for raising funds, under the situations of which future crypto currency can be exchange for real or at least liquid virtual money.
Most of the new ICOs support a maximum of 15 transactions per second and already occupy more than 100GB. They are made on the ether block, which supports - despite the fact that there are no real solutions on it. That is, when there are any popular services, everything "will fall" and very quickly...
In each country differently, but in general the picture is this: blocking technology is good, and digital currencies are not very good. The fact is that the crypto currency does not belong to any state, hence the complexity of the mechanisms of legal control. Crypto currency is convenient for users, but not for the state, because there is no possibility to charge a commission on operations, block an account, etc.
- There is no any customer service.
- Educational offline / online courses are of extremely poor quality.
- Crazy money is harmful to the market.
- The press does not try to understand technology and facts.
- While there are no clear laws in many countries, the miners prefer to communicate in person and not advertise their activities.
The market of crypto currency is on the rise. While it continues to grow and set new records, new players appear, but there will also be more applicants for the market share. Nevertheless, these facts do not indicate that the market is crypto-currency now where it should be. There are rumors that ICO will overtake its own development, and the bubble will burst like it was with many other new technological niches. Correction will somehow happen, and when this happens, it will be seen which crypto-currencies have the right to exist.