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December 29, 2017, 04:21:16 PM |
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Someone was asking which kind of Coin is best to make, and this came up, so I am going to explain it here for everyone.
I mentioned that Cryptonote is the easiest, and probably the most supported, with Scrypt coins (like Litecoin) being 2nd, and the person asked "Isn't Cryptonote based on their currency and it's not really its own thing", so let me explain that for everyone.
First there was Bitcoin, then Litecoin. Bitcoin is the SHA algorithm, and Litecoin is Scrypt. So they are 2 completely different kinds of Coins, but then there are Coins like Doge Coin, which is the exact same as Litecoin, but it has a different number of blocks and coins and a new Genesis Block. With a new Genesis Block, it is a new Blockchain; this is called "Cloning" but creates something that is entirely independent and new. If you use the same Genesis Block, that is when you are "Forking", Forking is using he same Blockchain but giving it a new name, and it's like a Fork in the road. Everyone that had the old coin, will have your coin, because your coin is using the old part of the Blockchain, but at that Fork in the road, everything becomes a new coin. But everyone that had a supply of the old Coin, can download a wallet and have just as many of your new Coin, but to get more they have to mine or stake your new coin. Examples of Forks are BitcoinCash and BitcoinGold.
So that is how new Coins are made. Most coins are Clones or Forks.
Just so everyone can have some info that most people don't have about Bitcoin, I was there when Bitcoin was $5 each, and the only place you could really spend them was on the Silk Road, and we had to go out and mass email companies to ask them to start accepting Bitcoins...
Bitcoin will run out, eventually when people mine them, they will no longer come out. So how does the Bitcoin network keep moving at that Point? At that Point, other Coins have to be mine, like Litecoin or Ethereum, or Coins that don't exist yet but will exist by the time Bitcoin runs out of Coins. And they will be mined in Pools with Bitcoin and they will be paid in the other Coins.
Then Forking, people were not sure how Forks would work, and when Ethereum was first forked because of a Giant Ethereum Hack, they didn't expect people to keep using the Old one. But that is how Ethereum Classic was made, and everyone who had Ethereum Classic (the old Ethereum) also has Ethereum on the new Fork Blockchain, meaning they pretty much doubled their money (but Ethereum Classic is not worth as much). Then there was SegWit and all that, which created Bitcoin Cash and Bitcoin Gold and all those, which did the same as Ethereum and gave everyone the same amount of each one that they had of Bitcoin.
And I will get into more stuff as this goes on, but I just want everyone to have some understanding of what we figured out as Bitcoin grew and we all discussed what the future (now and soon) were going to look like for Bitcoin.
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