The multilayer cryptocurrency

Questions have arisen as to whether bitcoin is becoming a multilayer system. Well, the answer is yes. This article aims to outline the different layers on which bitcoin is located. It’s all yours!

Have you heard of those who refer to bitcoin as digital gold? It is clear that cryptocurrency is rapidly gaining popularity and acceptance in the cryptocurrency world. It is estimated that the value of the currency will increase further. However, it is also observed that the currency can gain or lose 50% of its value overnight. This provokes speculation among investors, but the currency is nevertheless a ” digital gold ”. And when faced with the question of whether bitcoin is a multilayer system, it is important to know that bitcoin exists in two main layers. These are the mining and semantic layers.

The mining layer

This is the layer where the coin is created. In addition to bitcoins, ether is also created in this layer. After the coins are created, the valid bitcoin blocks are transferred to the ledger. This is where currency generation takes place. It should be noted that currency is generated from transactions contained in bitcoin blocks. Blogs are known as transaction fees. The currency can also be generated from the network itself, or it can be said “from the core”. The main advantage of generating money from the net is that it offers incentives to miners.

The semantic layer

This provides a very important platform. The semantic layer is the layer in which bitcoins are used as a means of payment. It also provides a platform for bitcoins to be used as a store of value. The layer looks very important, right? Holders of the bitcoin currency sign valid transactions indicating the start of the transfer of bitcoins between the nodes of the semantic layer. Transfer can also be made possible by creating smart contracts. Smart contracts transfer currencies between different accounts.

The lightning network

You’ve probably not heard of the lightning network. This is the latest invention that the bitcoin community is developing. This layer will have the ability to work on bitcoin. With this invention, there will be an application layer that is at the top of bitcoin. It will be so exciting. The most interesting aspect is that its value can also be used to make payments. This will be possible by transporting its value between people. With the invention of the lightning network, bitcoin will become a transport layer and also an application layer.

As of today, the value of bitcoin is estimated at about US $ 9 billion. It is also known that bitcoin is a decentralized cryptocurrency. This means that it works without the control of a bank or an administrator. Bitcoin is surely taking over the crypto world.

It is also important that the technology used during bitcoin mining is called blockchain technology. It works by allowing the distribution of digital information, not copying. Cryptography is really an exciting topic and in the near future bitcoins could outperform our major currencies.

Crypto TREND – Fifth edition

As we expected, since the publication of Crypto TREND we have received many questions from readers. In this edition we will answer the most common.

What kind of changes will occur that could change the game in the cryptocurrency sector?

One of the most important changes that will affect the world of cryptocurrency is an alternative method of block validation called Proof of Stake (PoS). We will try to keep this explanation at a fairly high level, but it is important to have a conceptual understanding of what the difference is and why it is an important factor.

Remember that the underlying technology with digital currencies is called blockchain, and most current digital currencies use a validation protocol called Proof of Work (PoW).

With traditional payment methods, you need to rely on a third party, such as Visa, Interact or a bank, or a check clearing house to settle your transaction. These trusted entities are “centralized,” that is, they maintain their own private ledger that stores the transaction history and balance of each account. They will show you the transactions and you must accept that it is correct or start a dispute. Only the parties to the transaction ever see it.

With Bitcoin and most other digital currencies, ledgers are “decentralized,” meaning everyone on the net gets a copy, so no one has to rely on a third party, like a bank, because anyone can verify. directly the information. This verification process is called “distributed consensus.”

PoW requires that “work” be done to validate a new transaction for entry in the blockchain. With cryptocurrencies, this validation is done by “miners”, who have to solve complex algorithmic problems. As algorithmic problems become more complex, these “miners” need more expensive and more powerful computers to solve problems ahead of everyone else. “Mining” computers are usually specialized, typically using ASIC (application-specific integrated circuits) chips, which are more skillful and fast to solve these difficult puzzles.

Here is the process:

  • Transactions are grouped into a “block”.
  • The miners check that the transactions within each block are legitimate by solving the hashing algorithm puzzle, known as the “working test problem.”
  • The first miner to solve the “work test problem” of the block is rewarded with a small amount of cryptocurrency.
  • Once verified, transactions are stored in the public blockchain across the network.
  • As the number of transactions and mining increases, so does the difficulty of solving hashing problems.

While PoW helped pull the blockchain and decentralized and untrusted digital currencies out, it has some real shortcomings, especially with the amount of electricity these miners consume trying to solve “work test problems” as quickly as possible. possible. According to Digiconomist’s Bitcoin energy consumption index, Bitcoin miners are using more energy than 159 countries, including Ireland. As the price of each Bitcoin increases, more and more miners are trying to solve the problems, consuming even more energy.

All this energy consumption just to validate transactions has motivated many in the digital currency space to look for an alternative method to validate blocks, and the main candidate is a method called “Participation Testing” (PoS).

PoS is still an algorithm, and the purpose is the same as in the job test, but the process for achieving the goal is quite different. With PoS, there are no miners, but we have “validators”. PoS is based on the trust and knowledge that all people who are validating transactions have their skin on the game.

Thus, instead of using energy to answer PoW puzzles, a PoS validator simply validates a percentage of transactions that reflect their ownership stake. For example, a validator that owns 3% of the theoretically available Ether can only validate 3% of the blocks.

At PoW, the chances of solving the job test problem depend on how much computing power you have. With PoS, it depends on how much cryptocurrency you have in “play”. The higher your bet, the more likely you are to settle the block. Instead of earning cryptocurrencies, the winning validator receives transaction fees.

Validators enter their participation by “closing” a portion of their background tokens. If they try to do something malicious against the network, such as creating an “invalid lock”, they will lose their share or security deposit. If they do their job and do not infringe the network, but do not earn the right to validate the blog, they will regain their share or deposit.

If you understand the basic difference between PoW and PoS, this is all you need to know. Only those who plan to be miners or validators need to understand all the advantages and disadvantages of these two validation methods. Most of the general public who want to own cryptocurrencies will simply buy them through an exchange and will not participate in the actual mining or validation of block transactions.

Most of the crypto industry believes that for digital currencies to survive in the long run, digital tokens need to switch to a PoS model. At the time of writing, Ethereum is the second largest digital currency behind Bitcoin and its development team has been working on its PoS algorithm called “Casper” for the past few years. We expect to see Casper implemented in 2018, putting Ethereum ahead of all other major cryptocurrencies.

As we have seen earlier in this sector, important events such as a successful implementation of Casper could make Ethereum prices much higher. We will keep you informed in future issues of Crypto TREND.

Stay tuned!

Hyperledger in the Blockchain world. What makes it different from other solutions?

Surely everyone has heard the words Ethereum and Bitcoin. Part of the blockchain world, they have captured the world’s attention through wide media coverage. Overall, blockchain technology has gained business interest due to its decentralized, immutable, and transparent nature. Other notable projects that have emerged in recent years include Hyperledger.

What is Hyperledger?

Hyperledger is an open source project of blockchains and related tools hosted by the Linux Foundation. It was created in 2015 and aimed to advance cross-sector blockchain technologies. Hyperledger does not support cryptocurrencies and does not represent a cryptocurrency network or a traditional blockchain system.

So what is Hyperledger for? The project aims to make it easier for developers and companies to work on blockchain adoption. It provides the standards and infrastructure needed to develop and implement blockchain solutions in a variety of industries.

Hyperledger structure in depth

The Hyperledger project can be visualized as a house with open source development tools and libraries as a base and modular frames just under the roof.

One of the most widely used digital textbooks is called Hyperledger Fabric. It is an authorized blockchain infrastructure that serves as a basis for creating applications or solutions with a modular architecture.

Hyperledger Besu is an Ethereum client designed for corporate use for both public and private use cases of authorized networks. The following Hyperledger Burrow framework runs on smart contracts and represents a complete binary blockchain distribution that supports EVM and WASM.

Hyperledger Indy can work autonomously or even interoperate with other blockchains. Indy was developed precisely for decentralized identities. An easier-to-use modular distributed platform is called Hyperledger Iroha. The framework contains a role-based permission model and multiple signature support. Iroha is designed for digital asset management systems and is used to manage identity and serialized data. As part of a Hyperledger system, there is no cryptocurrency either.

The Hyperledger Sawtooth digital logbook offers a modular architecture where smart contracts can specify business rules for applications without having to know the underlying system design. Sawtooth uses the Python programming language and simplifies the deployment and maintenance of the final software.

Hyperledger applications compared to other corporate solutions

Let’s take a look at the differences between traditional web portals and blockchain-based solutions. The former lack speed, security, and traceability, while the blockchain offers high transaction speed and enhanced security offered by smart contracts and encryption. As for Hyperledger dApps in particular, they stand out for their ability to handle complex business processes in a matter of hours.

When it comes to unauthorized blockchain solutions and Hyperledger applications with permission, there are several important differences. Unauthorized blockchain solutions involve zero regulation, allow anonymous cryptographic identities, and generally represent public systems in a shared registry. Fake tracking is code-based and transactions are impossible to alter.

Hyperledger applications are both public and private systems where workflows are monitored by regulators. Hyperledger application participants are real and identifiable, transaction identities can also be tracked.

Together, Hyperledger guarantees tamper-proof data exchange and cryptographic validation of contract terms and operations. A set of tools is rich with platforms and frameworks that can be chosen according to business specifications. In the end, implementing the solution will help consolidate databases, improve performance and scalability, minimize fraud risks, protect sensitive data, and streamline ROI.

Industries ready for Hyperledger adoption

Hyperledger has already entered multiple areas, such as supply chain management, retail, healthcare, FinTech, IoT, banking and manufacturing. Companies that use the technology include Walmart, Amazon, Nestlé, Visa, Maersk, Postal Savings Bank of China and others.

To start your business innovation by adopting Hyperledger, you need to choose a competent Hyperledger development company to design a customized solution to meet your business challenges.

Why developing an iOS app is a valuable investment for your business

While Android and iOS mobile apps are just as powerful at making a business visible to the global audience, it’s an iOS that can offer you more benefits, if you think long term. According to Statista reports, the world has more Android user apps (almost 2.5 million) than iOS (about 2 million). So finally, for learners and marketers, Apple’s app store ranks second after Google’s Play Store in terms of popularity. For companies that want to reach a wide user base, an Android app is a perfect choice. But, if you want your app to not only look for the right users, but also offer a quality experience, then an iOS app is your choice. Here we have discussed in more detail several factors to help you better understand why investing in an iOS app is better for your business.

The brand name says it all

One of the top reasons to put an iOS app at the forefront of your business is its unique “brand identity”. For years, Apple has maintained the legacy of offering high quality phones and tablets. As a clear winner of the market with great brand reputation, Apple devices capture the attention of the elite segments of the population.

Smooth UX / UI of iOS devices

Undoubtedly, Apple dominates the design and development of the most perfect user experience for each device. Everything from the graphical interface, the layout of the screen, the animation standards to the navigation, are designed keeping in mind the expectations of the users. This makes all versions of iPhone and iPad very performance-based, and therefore an iOS app can offer a much better customer experience.

It helps to compete better

An iOS app will help you better stand out from the competition. From helping you connect with your customers to increasing your brand’s reputation, it makes your business different from your competitors. Apart from that, all iOS devices include an excellent quality standard and innovative features that will help the app to offer its services to the users in an extraordinary way.

The number of iPhone users is growing day by day

While statistics show a larger number of Android devices than iOS, data on the number of iOS users reflects a growing trend. This means that your iOS app will see its user base grow in the long run.

Improved security level

There is no doubt about the level of security that Apple devices offer. It offers first-class security and a guarantee of data privacy. This is considered to be the best aspect of using iOS. Therefore, for apps that aim to collect customer information, support payment facilities and facilitate data transfer, iOS is the right platform. ‘

As much as Android has been successful in acquiring users worldwide, iOS has its different user bases and this will differentiate your app from the rest if it is designed for iOS. Specified as the best mobile platform, it will help your business gain a strong digital presence and increase revenue by meeting the expectations of all users in the right way.

Cryptocurrency: the new sensation

The concept of cryptocurrency was coined in 1991. However, the first real implementation was done in 2008 by Nakamoto. The first question arises, what is cryptocurrency. It is a financial configuration in which the currency is transferred between the two parties. At first, problems such as the double-error method arose, although the problem was later solved using concepts such as blockchain technology. The whole process is governed by cryptographic algorithms. A set of public and private keys is being transferred between the two parties. The detail of each transaction is stored in each block and for each customer; a chain of blocks forms the complete list of the transaction. All the blocks together form the block chain. These blog chains are nothing more than the financial ledger. The power of this new currency transaction system depends on the power of the cryptographic algorithm. With the implementation of algorithms such as DES, the secrecy of each financial transaction (blockchain) has been strengthened. However, the concept has not yet been approved by many countries. The data in each block cannot be modified retroactively or without network consensus. The share of cryptocurrency is not very current, although over time it is expected to increase.

Some of the characteristics of the cryptocurrency are:

• Decentralized

• Distributed

• Public book

The most important aspect of cryptocurrency is the above, but technology requires security for effective use. Problems such as double error have occurred in the past, although this problem has now been resolved. The biggest advantage of cryptocurrency is its upgrade function without touching the central server. Therefore, we do not need to make any changes to the server. In addition, the transaction can be made between two or three members of the network.

Thus, several advantages that you obtain by means of the cryptocurrency are the following:

• Safe-deposit box

• Fast

• Reliable

• Precise

However, the technology has developed although it is not being accepted by all countries. The biggest sensation of cryptocurrency is bitcoin. It is being accepted by many countries. Similarly, you can find many more types of cryptocurrency. Each of them uses a unique type of algorithms. You can learn all of them through cryptography. It is a broad topic and the application in the form of cryptocurrency is one of the major advances of the last decade. Usage could definitely quadruple in the next few years.

Digital currency is also used as part of questionable configurations such as illicit online businesses, for example, Silk Street. The first Silk Street was closed in October 2013 and since then two more forms have been used. The year following the underlying closure of Silk Street, the number of unmistakable weak markets expanded from four to twelve, while the measure of drug publications expanded from 18,000 to 32,000.

Darknet markets present legal challenges. Bitcoins and the different types of digital money used as part of weak markets are not obviously or legally ordered in all parts of the world. In the US, bitcoins are called “virtual resources”. This questionable type of agreement gives weight to law enforcement offices around the world to adapt to the moving drug exchange in weak markets.

In which cryptocurrencies is it good to invest?

This year, the value of Bitcoin has skyrocketed, even beyond an ounce of gold. There are also new cryptocurrencies on the market, which is even more surprising as it raises the value of cryptocurrencies to over one hundred billion. On the other hand, the long-term cryptocurrency prospects are a bit blurry. There are disputes over lack of progress among its major developers that make it less attractive as a long-term investment and as a payment system.

Bitcoin

Still the most popular, Bitcoin is the cryptocurrency that started it all. It is currently the largest market capitalization, around $ 41 billion and has existed for the past 8 years. All over the world, Bitcoin has been widely used and so far it is not easy to exploit the weakness in the method with which it works. Both as a payment system and as a stored value, Bitcoin allows users to receive and send bitcoins easily. The concept of blockchain is the basis on which Bitcoin is based. You need to understand the concept of blockchain to get an idea of ​​what cryptocurrencies are.

Simply put, blockchain is a database distribution that stores all transactions on the network as a piece of data called a “block.” Each user has blockchain copies, so when Alice sends 1 bitcoin to Mark, everyone on the network knows it.

Litecoin

An alternative to Bitcoin, Litecoin is trying to solve many of the problems that hold Bitcoin back. It is not as robust as Ethereum with its value derived mainly from the adoption of solid users. It’s worth noting that Charlie Lee, a former Google leader at Litecoin. He is also practicing transparency with what he is doing with Litecoin and is quite active on Twitter.

Litecoin was Bitcoin’s second violin for quite some time, but things started to change in early 2017. First, Coinbase adopted Litecoin along with Ethereum and Bitcoin. Litecoin then solved the Bitcoin problem by adopting Segregated Witness technology. This gave him the ability to reduce transaction fees and do more. The deciding factor, however, was when Charlie Lee decided to focus exclusively on Litecoin and even left Coinbase, where he was the engineering director, only for Litecoin. Because of this, the price of Litecoin has risen in recent months and its strongest factor is the fact that it could be a real alternative to Bitcoin.

Ethereum

Vitalik Buterin, superstar programmer, devised Ethereum, which can do everything Bitcoin is capable of doing. However, its main purpose is to be a platform for building decentralized applications. Block chains are where the differences between the two lie. Basically, the Bitcoin blockchain registers a type of contract, which indicates whether the funds have moved from one digital address to another. However, there is a major expansion with Ethereum, as it has a more advanced language script and has a more complex and broader scope of applications.

Projects began to emerge on top of Ethereum when developers began to notice their best qualities. Through the sales of symbolic crowds, some have even raised millions of dollars and this is still an ongoing trend even today. The fact that you can create wonderful things on the Ethereum platform makes it almost like the Internet. This caused a price increase, so if you bought Ethereum worth a hundred dollars earlier this year, it wouldn’t be worth nearly $ 3,000.

Currency

Monero aims to solve the problem of anonymous transactions. Even if this currency was considered a method of money laundering, Monero intends to change it. Basically, the difference between Monero and Bitcoin is that Bitcoin includes a transparent blockchain with all public and registered transactions. With Bitcoin, anyone can see how and where the money was transferred. However, there is a somewhat imperfect anonymity to Bitcoin. In contrast, Monero has a more opaque than transparent transaction method. No one sells at all with this method, but since some people love privacy for any purpose, Monero has come to stay.

Zcash

Unlike Monero, Zcash also aims to solve the problems that Bitcoin has. The difference is that instead of being completely transparent, Monero is only partially public in its blockchain style. Zcash also aims to solve the problem of anonymous transactions. After all, no one likes to show how much money they actually spent on Star Wars memories. Thus, the conclusion is that this type of cryptocurrency really has an audience and a demand, although it is difficult to point out which privacy-focused cryptocurrency will end up above the stack.

Bancor

Also known as a “smart token”, Bancor is the next-generation cryptocurrency standard that can hold more than one token in reserve. Basically, Bancor tries to facilitate the trade, management and creation of tokens by increasing their level of liquidity and letting them have an automated market price. Right now, Bancor has a product on the front end that includes a portfolio and the creation of a smart token. There are also features in the community such as statistics, profiles, and discussions. In short, Bancor’s protocol makes it possible to discover an integrated price as well as a liquidity mechanism for smart contract sheets through an innovative reservation mechanism. With the smart contract, you can instantly settle or buy any of Bancor’s booking tokens. With Bancor, you can easily create new cryptocurrencies. Now who wouldn’t want that?

EOS

Another competitor to Ethereum, EOS is committed to solving the problem of the Ethereum scale by providing a set of tools that are more robust for running and creating applications on the platform.

Tezos

An alternative to Ethereum, Tezos can be updated by consensus without too much effort. This new blockchain is decentralized in the sense that it is self-governing through the establishment of a true digital community. It facilitates the mathematical technique called formal verification and has functions to improve the security of the most sensitive and economically weighted smart contract. Definitely a great investment in the coming months.

Verdict

It’s incredibly difficult to predict which Bitcoin on the list will become the next superstar. However, user adoption has always been a key success factor when it comes to cryptocurrencies. Both Ethereum and Bitcoin have this, and even though there is a lot of support from the first adopters of all the cryptocurrencies on the list, some have yet to demonstrate their staying power. However, these are the ones that need to be invested and monitored in the coming months.

South Korea is taking a step to legitimize the blockchain to unify politics

South Korea is one step closer to legitimizing the blockchain chain in the country. According to reports, the South Korean government has begun drafting a number of new industry classification standards to govern the country’s blockchain sector.

On the way to unifying blockchain

Specifically, three Korean government ministries are working together to finalize the new blockchain industry classification scheme. The Ministry of Information and Communication, the Ministry of Science and Technology and the National Statistics Office are expected to prepare the final draft by the end of July 2018.

The scheme will help provide the basis for making policies related to the “promotion of the blockchain and regulatory frameworks.” It will also cover areas such as cryptocurrency exchanges, transactions, decentralized application development (DApps) and building blockchain systems. The draft will also classify cryptocurrency exchanges as the exchange and intermediation of cryptocurrencies. This is very important, as cryptographic exchanges were previously considered “communication providers”. Now, they can be considered regulated financial institutions.

Facilitate blockchain regulations

Things are getting better for the blockchain, as the South Korean government aims for a more relaxed approach. Earlier, the Financial Services Commission (FSC) imposed a ban on ICOs, as officials were concerned about the adverse effects of cryptocurrencies, going so far as to say that cryptocurrencies could corrupt the country’s youth.

The FSC is considered the Korean regulatory authority that oversees blockchain policy. It is also the governing body of the Financial Supervision Service (FSS), which has since reconsidered its cryptocurrency regulatory policy.

“The FSC revised its rules to implement strengthened policies to prevent or detect money laundering and illegal activities so that the regulator does not oppose cryptocurrencies,” an official The Korea Times quoted.

“Establishing unified rules is a complicated issue given the wider range of evaluations among government agencies. That is why the country needs close international cooperation, as it is still in the early stages of the adjustment guidelines,” he said. another official.

That said, South Korea is following the policies set by the G-20 nations, an international forum for central bank governments and governors. Leading financial policy makers in G-20 member countries have agreed to recognize and regulate cryptocurrencies as financial assets. While South Korea has not yet done the same, its move to ease cryptocurrency regulations is likely to benefit other nations that are heating up in the blockchain industry, as major exchanges are now looking to expand further into international markets with plans to offer blockchain- based services in the Asian region.

Is cryptocurrency the future of money?

What will the future of money look like? Imagine going into a restaurant and looking at the digital menu board of your favorite combination food. Only, instead of being priced at $ 8.99, it is shown as 009 BTC.

Can crypto really be the future of money? The answer to this question depends on the general consensus on several key decisions ranging from ease of use to safety and regulations.

We examine the two sides of the (digital) currency and compare and contrast traditional fiat money with cryptocurrency.

The first and most important component is trust.

It is imperative that people trust the currency they use. What gives value to the dollar? Is it gold? No, the dollar has not been backed by gold since the 1970s. So what gives value to the dollar (or any other fiat currency)? The currency of some countries is considered more stable than others. Ultimately, people’s confidence is that the government issuing this money is firmly behind it and essentially guarantees its “value”.

How does trust with Bitcoin work, as it is decentralized, meaning that it is not a governing body that issues currencies? Bitcoin is in the blockchain, which is basically an online ledger that allows everyone to see each and every one of the transactions. Each of these transactions is verified by the miners (people who operate equipment on a peer-to-peer network) to prevent fraud and also to ensure that there are no double charges. In exchange for their blockchain integrity maintenance services, miners receive a payment for each transaction they verify. Since there are countless miners trying to make money, each checks that the others work if there are mistakes. This proof of the work process is why the blockchain has never been hacked. Basically, this trust is what gives value to Bitcoin.

Then let’s look at the closest friend of trust, security.

What if my bank is stolen or there is fraudulent activity on my credit card? My bank deposits are covered by FDIC insurance. Chances are my bank will also reverse the charges I never made to my card. This is not to say that criminals will not be able to achieve acrobatics that are at least frustrating and time consuming. It is more or less the tranquility that comes from knowing that I will most likely recover from any wrongdoing that has occurred to me.

In cryptography, there are many options when it comes to storing your money. It is essential to know if the transactions are insured for your protection. There are reputable exchanges, such as Binance and Coinbase, that have a proven track record in error repair to their customers. Just as there are less respectable banks around the world, the same goes for cryptography.

What happens if I throw a twenty dollar bill into the fire? The same goes for cryptography. If I lose my login credentials for a particular wallet or digital exchange, I will not be able to access these currencies. Again, I can’t stress enough the importance of doing business with a reputable company.

The next number is the scale. Currently, this could be the biggest hurdle preventing people from making more transactions in the blockchain. When it comes to the speed of transactions, fiat money moves much faster than cryptocurrencies. Visa can handle about 40,000 transactions per second. Under normal circumstances, the blockchain can only handle about 10 per second. However, a new protocol is being enacted that will trigger up to 60,000 transactions per second. Known as the Lightning Network, it could result in the transformation of cryptography into the future of money.

The conversation would not be complete without talking about convenience. What do people normally like about their traditional methods of spending and banking? For those who prefer cash, it’s obviously easy to use most of the time. If you want to book a hotel room or a rental car, you need a credit card. Personally, I use my credit card wherever I go, for convenience, security and rewards.

Did you know that there are also companies that provide all this to the cryptographic space? Monaco now issues Visa cards that automatically convert your digital currency into the local currency.

If you’ve ever tried to connect money to someone, you already know that this process can be very tedious and costly. Blockchain transactions allow a user to send encryption to anyone in minutes, no matter where they live. It is also considerably cheaper and safer than sending a bank.

There are other modern methods of transferring money that exist to both worlds. Take, for example, apps like Zelle, Venmo, and Messenger Pay. These apps are used by millions of millennials every day. Did you also know that they are also starting to incorporate cryptography?

The Square Cash app now includes Bitcoin and Jack Dorsey CEO said, “Bitcoin, for us, doesn’t stop at buying and selling. We believe it’s a transformative technology for our industry and we want to learn as quickly as possible. ”

He added: “Bitcoin offers the opportunity for more people to access the financial system.”

While it’s clear that fiat spending still dominates the way most of us move money, the new encryption system is gaining ground quickly. Tests are everywhere. Prior to 2017 it was difficult to find conventional media coverage. Now almost all major corporate media cover Bitcoin. From Forbes to Fidelity, everyone is weighing in with their opinions.

What is my opinion? Perhaps the main reason Bitcoin can be successful is that it is fair, inclusive, and gives financial access to more people around the world. Banks and large institutions see this as a threat to their own existence. They follow the losing end of the largest wealth transfer the world has ever seen.

Still undecided? Ask yourself this question: “Do people more or less trust governments and banks every day that passes?”

Your answer to this question may be what determines the future of money.

What is a cryptocurrency and Bitcoin?

The website is part of society and is configured by society. And until society is a crime-free zone, the web will not be a crime-free zone.

So what is a cryptocurrency? A cryptocurrency is a decentralized payment system, which basically allows people to send currency to each other over the web without the need for a trusted third party, such as a bank or financial institution. Transactions are inexpensive and in many cases are free. And in addition, the payments are also pseudo anonymous.

On top of that, the main feature is that it is fully decentralized, which means there is no central point of authority or anything like that. The implications of this are made if everyone has a complete copy of all the transactions that have ever happened with Bitcoin. This creates an incredibly resilient network, which means no one can change, reverse, or control any of the transactions.

The high level of anonymity that exists means that it is very difficult to track transactions. It is not entirely impossible, but it is practical in most cases. Therefore, crime with cryptocurrency, because you have fast, borderless transactions and a high level of anonymity, in theory creates a mature system for exploitation. Therefore, in most cases when it comes to an online crime with online payment systems, they usually turn to the authorities and, for example, we can hand over this payment information or we can stop these transactions and reverse them. the. And none of that can happen with Bitcoin, so in theory, it makes it ripe for criminals.

In light of this, many agencies are researching Bitcoin and looking at Bitcoin and trying to understand how it works and what they can do to control it. He has also been in the media quite a few times, and the media, being the media, want to focus on his negative side. So they focus a lot on crime. So if there is a theft, scam or something like that, they tend to blame Bitcoin and Bitcoin users.

So the highlight is probably the Silk Road, which was recently withdrawn and, through its $ 1.2 billion worth of bitcoins, went to pay for anything from drugs to weapons to attack. men to this kind of thing. And the media, again, very quickly blamed Bitcoins and said it was the Bitcoin user’s fault.

But in reality there is very little evidence of the extent of the problem of crime with cryptocurrencies. We don’t know if there are many or we don’t know if there are a few. But even so, people are very quick to call him a criminal and forget about legitimate uses, such as quick and quick payment.

So some research questions I look at in this area are what is the crime with Bitcoin like? Therefore, many people will say that scams and thefts have been going on for a long time. But the means they go through changes with technology. So a Victorian street swindler would practically be doing something very different from a Nigerian prince swindler 419.

Therefore, the next question I would like to investigate is also to analyze the extent of the problem of crime with cryptocurrency. Therefore, by generating a record of known scams, thefts and the like, we can make a cross-reference with the public transaction record of all transactions and see how many of the transactions are actually illegal and criminal. So my final question would be: to what extent does technology itself really facilitate crime? If we look back at crime records, we can see what particular types of crime happen and whether it is actually the fault of technology, or whether they are the same old crimes we have been examining before. And once we consider these things, we can start thinking about possible solutions to the problem of crime with Bitcoin.

And we can consider that the only suitable solution would be the one that preserves the underlying values ​​of the technology itself, which would be privacy and decentralization. The media focuses its attention on analyzing its criminal aspects. And they don’t give enough value to legitimate uses, as Bitcoin is a technology that allows for quick and quick payments, which is useful for anyone who has ever paid for anything on the web.

What is cryptocurrency?

Cryptocurrency (or cryptography) is a controversial digital asset designed to function as a means of cryptocurrency exchange to protect your transactions, additional monitoring units, and transfer assets. Cryptographic values ​​are a type of digital currency, alternative currency and virtual currency. Cryptocurrencies use decentralized control rather than a centralized system of electronic money and central banks.

The decentralized control of each cryptocurrency works through blockchain, which is the basis of public transactions, which functions as a distributed registry.

Formal definition

According to Jan Lansky, the crypto pot is a system that meets four conditions:

• The policy defines whether new cryptocurrency units can be created. If new cryptocurrency units can be designed, the system identifies the circumstances of the source with the ownership of these new units.

• If two different instructions are entered to change the purchase of the same cryptographic units, the system will perform at most one of them.

• The system allows transactions to be made in a way that changes the owner of the cryptographic unit. An entity with a transaction can only issue an entity that accredits the current owners of these units.

• The ownership of cryptocurrency units can be displayed exclusively in cryptocurrency.

Overview

Decentralized cryptography collectively produces the entire system of cryptographic services at the speed defined during the creation of the system and is publicly known. In centralized economic and banking policies, such as the Federal Reserve System, administrative committees, or governments that control the supply of money by printing units of trust funds or requiring complementary digital books. In the case of decentralized cryptocurrency, governments or companies cannot produce new units, but they are not compatible with other companies, banks, or entities that have real estate securities. The main technical system based on decentralized cryptocurrencies has been created by a group or person known as Satoshi Nakamoto.

As of May 2018, there were more than 1,800 transparent cryptographic specifications. The system of cryptocurrency, security, integrity and balance records is maintained by a community of mutually suspected underage parties who use their computer to confirm the time of the transaction, adding them to the record under a stamp scheme. of specific time.

Most cryptocurrencies are designed to gradually reduce the production of this coin by limiting the total amount of these coins that will be in circulation. Compared to the common currencies held or maintained by financial institutions

money in hand, police can be harder to catch cryptographic. This problem stems from the exploitation of cryptographic technologies.