Bitcoin Forum
June 15, 2024, 05:22:11 PM *
News: Latest Bitcoin Core release: 27.0 [Torrent]
 
   Home   Help Search Login Register More  
Pages: [1]
  Print  
Author Topic: how real for crypto currency?  (Read 285 times)
ionman93 (OP)
Jr. Member
*
Offline Offline

Activity: 126
Merit: 1


View Profile
November 05, 2018, 12:14:28 PM
 #1

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

Let‘s 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 Bob‘s private key. It‘s 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.

how it work:
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 can‘t 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 miner‘s activity is the single most important part of cryptocurrency-system we should stay for a moment and take a deeper look on it.

what is miners :
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 don‘t need to understand details about SHA 256. It‘s 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 if miners solve a cryptographic puzzle. Since the difficulty of this puzzle increases the amount of computer power the whole miner’s 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.

stay tuned for the next update...
bitfocus
Member
**
Offline Offline

Activity: 532
Merit: 15


View Profile
November 05, 2018, 12:27:42 PM
 #2

This is a September 13, 2018 article from blockgeeks, please link the source if the article is not your baby.
P.Mahin
Newbie
*
Offline Offline

Activity: 84
Merit: 0


View Profile WWW
November 05, 2018, 01:17:23 PM
 #3

Crypto currency is the real money.Day by day most people uses crypto currency. It's world wide currency. This currency from real money because this currency sell for real money.I think so Crypto currency is real money no doubt. This currency user most country people from world wide.Crypto currency user day by day increase & this currency already popular from world.So I there for crypto currency is real money.
Peashooter
Sr. Member
****
Offline Offline

Activity: 868
Merit: 257


View Profile
January 09, 2019, 09:14:50 AM
 #4

Crypto currency is the real money.Day by day most people uses crypto currency. It's world wide currency. This currency from real money because this currency sell for real money.I think so Crypto currency is real money no doubt. This currency user most country people from world wide.Crypto currency user day by day increase & this currency already popular from world.So I there for crypto currency is real money.
We may call it as real money and sometime not a real money simply because it is not legalized in all countries. If cryptocurrencies will be implemented and legalized in all countries and I can truly say that in the future it will become real money which is acceptable in offline and online market and even the government will consider as money.
maldini
Sr. Member
****
Offline Offline

Activity: 952
Merit: 308



View Profile
January 09, 2019, 05:01:50 PM
 #5

in general bitcoin is a virtual currency because bitcoin itself is a crypto currency, in contrast to fiat which is a real currency in physical form. Anything that has a digital nature will be called virtual.
I consider Bitcoin to be fundamentally not generally
HODL2090
Member
**
Offline Offline

Activity: 210
Merit: 29


View Profile
January 09, 2019, 05:08:55 PM
 #6

in general bitcoin is a virtual currency because bitcoin itself is a crypto currency, in contrast to fiat which is a real currency in physical form. Anything that has a digital nature will be called virtual.

Fiat can actually be represented in it's virtual form, and as the world gradually shifts towards digitalization, and now we can make payments, large and small without physical transactions, currency notes and coins would soon be a thing of the past.
Bitcoin is decentralized and not under any regulation or law, this makes it a cryptocurrency. It is not represented by any institution or financial entity.
bitfocus
Member
**
Offline Offline

Activity: 532
Merit: 15


View Profile
January 10, 2019, 11:47:51 AM
 #7

Please the real article when you post something that is not yours.
bagalkot
Jr. Member
*
Offline Offline

Activity: 85
Merit: 5


View Profile
January 10, 2019, 11:55:25 AM
 #8

Now every one wanted to earn merit for that they have started to steal the source of good post and just copy and paste here on this forum and try to earn merit. But they forget that their are so many users who are updated daily with all online articles. So it is better that you first give the credit to the real owner of the article and then copy here.
Valer4ik
Full Member
***
Offline Offline

Activity: 490
Merit: 101



View Profile
January 10, 2019, 02:07:06 PM
 #9

Well ... as far as my poor experience in this area shows, a crypt - it is generally wildly unpredictable. I remember well that about a year ago every one of analysts and other writers of articles wrote that every next local minimum of Bitcoin is higher than the previous one. Especially in the second half of 2017. And there is nothing to be afraid of - there will be no lower fall than the failures of the end of 2017! I then believed them ... was still young ... Therefore, I did not merge what I had with a high course. I thought at the beginning of 2018 that drawdowns are temporary. And everyone said so. And reputable people, too. And they brought smart evidence. Then he began to believe in the New Year rally ... and he, too, was not there (for now).

     In general, I am now finally convinced that you just need to sit and wait. And do not trust anyone. Because all the same, everything will be somehow different.
solopay669
Newbie
*
Offline Offline

Activity: 90
Merit: 0


View Profile
January 30, 2019, 09:51:09 AM
 #10

well, that’s all true, but even after writing this article, the changes have already gone, and the course has moved a little, most of all I liked what I really need to leave all the hype, and not pay attention to false info.
romero121
Legendary
*
Offline Offline

Activity: 3192
Merit: 1213


Enterapp Pre-Sale Live


View Profile
January 30, 2019, 10:01:15 AM
 #11

Bitcoin as real currency isn't possible soon, it needs more time to reach the level. Already our traditional fiat has got the best electronic form with the accessibility through cards and other networking mediums. Crypto is completely different, it is digitally developed while fiat is physically created and was given the electronic copy. Change will happen with cryptocurrencies, but we don't know the time target for the same.

█████████████████████
█████████████████████████
█████████▀▀▀▀▀▀▀█████████
██████▀███████████▀██████
█████▀███▄▄▄▄▄▄▄███▀█████
████████▀▀▀▀▀▀▀▀▀████████
█████████████████████████
█████▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄█████
█████████████████████████
██████▄███████████▄██████
█████████▄▄▄▄▄▄▄█████████
█████████████████████████
█████████████████████
 
    CRYPTO WEBNEOBANK    
▄▄███████▄▄
▄███████████████▄
▄██████░░░░░░░░░░███▄
▄████▄▄███████▄▄░░░██▄
▄█████████████████░░░██▄
████░░▄▄▄▄▄▄▄▄▄░░░░░░░░██
████░░██████████░░░░░░░██
████░░▀▀▀▀▀▀▀▀▀░░░░░░░░██
▀█████████████████░░░██▀
▀████▀▀███████▀▀░░░██▀
▀██████░░░░░░░░░░███▀
▀███████████████▀
▀▀███████▀▀
septi.JR
Sr. Member
****
Offline Offline

Activity: 658
Merit: 250



View Profile
January 30, 2019, 12:13:17 PM
 #12

btc is digital money and real money is paper money, so it can't be touched if how real is crypto money, crypto is an alternative currency with full transparency


````````````````██
```````````````████
``````````````██████``█
`````````````▓▓██████`██
````````````▓▓▓██████████
```````````▓▓▓▓▓██████████
``````````▓▓▓▓▓▓▓▓█████████
`````````███████████████████
````````█████████████████████
```````███████████████████████
`````██████████████████████████
````███████████``````███████▓▓▓▓
```████████████``````███████▓▓▓▓▓
``█████████████``````█████████▓▓▓▓
`████████``````````````````████████
█████████``````````````````█████████
█████████``````````````````██████████
``█████████████``````██████████████
`````██████████``````███████████
````````███████``````████████
```````````███████████████
``````````````█████████
Greentoken
ROCKZ
|
Pages: [1]
  Print  
 
Jump to:  

Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!