Proponents of cryptocurrencies see it as an alternative to the traditional financial world. Digital money no longer needs banks, since the holders become their own financial institute.There is no central body to control monetary flows and currencies.Buyers are still in control, but they are also responsible for the security of assets.

When did cryptocurrencies first appear and who invented them?

In the early 1990s, a group of programmers and cryptographers discussed e-mail ways to protect privacy in the digital world. Inspired by the concept of “cyberpunk”, they gave themselves the name of “cypherpunks”. One of the most prominent members of this group is the Briton Adam Back. It is to him that we owe the development of the “proof-of-work” method at the very basis of cryptocurrencies. By simplifying, the sending computer thus proves that it needed a certain computing power for the outgoing message. The “proof-of-work” method must make it possible to avoid spam. The new libra trading software, like the Bitcoin Circuit app, is one of the best sites for the any transaction regarding the bitcoin.

What cyber currencies are there today?

There are now more than 3000 cryptocurrencies. However, only a hundred of them reach a daily trading volume of more than $1,000. If bitcoin, the first cryptocurrency, is also the best known, ether, ripple and litecoin also claim a place in this new universe. Weird currencies like cryptokitties are also gaining popularity. This is about raising the most original virtual cats possible and then selling them for a profit.

How does bitcoin work from a technical point of view?

The most important technical basis of cryptocurrencies is blockchain. This “chain” is based on three concepts. The first is the public cash book. All network participants can freely see each transaction within the blockchain. Invalid transactions are quickly rejected thanks to this principle of multiple checks. If someone wants to transfer more bitcoins than they have, for example, the transaction is not carried out.

To prevent this cash book from being manipulated, it is decentralized with the second concept. Information is not saved on a single computer, but on an entire network of devices. Everyone can keep a copy of the public cash book. This complete copy of the blockchain is called “full node”.

But how can you guarantee that each participant in the network has the same copy of the cash book? This is where minors come in. Their role is to keep the network up to date and to control it. To confirm a transaction, you must first check if it is valid, so check if the sender has enough money. Then, the miner must calculate an electronic code which allows him to record the transaction in his cash book. This is where the proof-of-work method comes into play. The solution indeed requires a certain computing power. If the code has been found, the transfer is recorded in the minor’s cash book. Also called “hash value”, the code is then sent to all full nodes on the network. All copies of the blockchain thus remain identical.

What are the benefits of bitcoin?

The main advantage of bitcoin is its independence from financial institutions. Transactions are made directly between the buyer and the seller. Today, when you want to make an international transfer by bank, you have to be patient. In addition, banks apply transaction and exchange fees. In addition, a bank account may be subject to limits. Bitcoin ignores these kinds of limits: if you want to sell all of your cryptocurrency assets, it won’t take you more than a few minutes. The new libra trading software provides the all facilities of the bitcoin investment and purchase.

The creation of new bitcoins is based on a complex algorithm. This algorithm was designed so that a ceiling of 21 million bitcoins is never crossed. Proponents of cryptocurrency see it as an advantage over conventional currencies. It is indeed the central banks that control the printing press. According to supporters of bitcoin, its price will stabilize as soon as the 21 million bitcoins are in circulation.

Bitcoinis transparent due to the public nature of the blockchain. It also contributes to the high level of security in cryptocurrency. No one will successfully manipulate all of the full nodes simultaneously. Despite this public accounting, bitcoin holders remain pseudonyms. In fact, the assets are not managed in their own name but with an identification code. In addition, bitcoin can be used worldwide, it does not have to be converted to other currencies first.

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