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What are ERC-20 tokens?
Understanding how Bitcoin works is not easy for most people, and Ethereum is much more difficult. Even if you are with technologies on “you”, it will take a lot of time to understand how this system works. So, Ethereum is a decentralized platform on which smart contracts written in the Solidity programming language can work. It can also run hundreds of decentralized applications.
For any new application that uses blockchain or smart contracts, a new Ethereum token can be created – several standards have been developed for such tokens, and tokens of different standards are suitable for different types of applications. Standards facilitate the interaction between tokens and smart contracts, and therefore Ethereum is a popular platform for developing decentralized applications. Ethereum can be likened to iOS or Android operating systems for decentralized applications – it simplifies their creation and supports operation.
Ethereum ERC-20 Token This is the current industry standard that is used by thousands of different cryptocurrency projects. The ERC-20 token standard has six required parameters for each smart contract and three additional (but recommended!) Options. For example, the permissible number of decimal places is additional. For comparison, Bitcoin supports eight decimal places, a symbol (usually a 3-4-digit code) and a name. The six required parameters determine the number and transfer of tokens.
Advantages and features of the standard
The main advantages of the ERC20 standard tokens include the following:
Free entry to the market
Most cryptocurrency exchanges have long been working with the standard ERC20. They do not have to make changes to their program code to accept new tokens.
This makes life much easier for ICO developers. They simply take the ERC20 code on GitHub, create their own tokens based on it, and after bidding submit an application for adding a coin to the listings of the required exchanges. If the cryptocurrency meets the requirements of the exchange, it is added in a few days.
Technical simplicity
ERC20 is such a simple standard that even a novice programmer can create tokens based on it. All technical information is freely available on GitHub, and ERC20 token generation tutorials can be found even on YouTube.
Multifunctionality
Most tokens perform one given function. For example, they confirm ownership of certain assets (as in the case of the purchase of tokens during the ICO), act as a cryptocurrency asset or stock.
The disadvantages and risks of the standard
The main problem with the ERC20 is the lack of transaction processing tools. They start automatically, even if they should not be started in principle. Consider a clear example.
Suppose an investor who wants to accept an asset in ICO sends funds to the specified address. But developers only accept BTC, and the investor wants to send them ETH. In this case, he will not be able to start a transaction – it will be rejected by the system.
But if he sends the ERC20 standard tokens to the same ICO, the transaction will be accepted. Funds from his balance will be debited and sent to the recipient’s address. But in our case, the address accepts only BTC. He does not know what to do with ERC20 tokens, and he cannot accept the transaction. As a result, the coins are simply “lost” somewhere in the blockchain. Moreover, it will be impossible to return them.
Summary
The ERC20 is a universal standard that most modern ICOs use. Its advantages are the simplicity and convenience of working with smart contracts. To verify the execution of a smart contract and move funds, the nodes do not need to contact the database and follow protocols. It is enough to check whether the conditions of the contract are fulfilled correctly.
However, simplicity was also a disadvantage of the ERC20. The ease of creating your own tokens attracts scammers who organize scam-ico and disappear with collected funds.
What are products?
Bitcoin is likely to become a new, independent asset class, so gold or stocks that will be sent for regulation, said Leo Melamed, honorary chairman of CME Group, this week in an interview with Reuters. According to Melamed, launch in the sale will be possible only in the near future. He pointed out the parallel between cryptocurrency and currency trading in the international currency market, launched in 1972: “The world in the 1970s was not considered currency trading with a full financial level. I, too, have come a long way from disbelief (in Bitcoin) to the desire to learn more.”
So what is it?
The answers will be positive for geeks who participate in the development of cryptocurrencies and use them for transactions. It will be negative for people because their price has recently risen, and we hope to sell when it becomes even bigger, as well as for those who buy cryptocurrency for a radical defense against inflation.
The rest should understand which forecast seems more plausible to them: either cryptocurrency will support the development of the non-traditional business sector, and this will lead to a blurring of the boundaries between investors, employees, and customers; or blockchain technologies will be used by a traditional business that receives funding through the placement of shares and bonds. Again, the question is not what you think about the probability of success of cryptocurrency and related technologies, but whether you think that their value (if it is, of course) will attract traditional companies or holders of crypto active assets. You don’t have to know for sure. If you believe that there is a significant likelihood that in the future a significant part of the economy will be represented by crypto active assets, it makes sense for you to think about how this will be reflected in your investment portfolio.
The second reason
The second reason for having asset classes is that it is difficult to compare different types of assets, for example, shares with bonds. Once you have selected an asset class, you can explore all the assets in it and select the combination that best suits your strategy. If the only thing that interests you in cryptocurrency is price dynamics, then this asset should be attributed to the class of shares. If you plan to read official documents, talk with developers, test the code and calculate future profitability, then you should allocate them into a separate asset class, since these studies differ from stocks or bonds research.
There remains one more group of investors – they are interested in the fundamental indicators of cryptocurrency, but they would like to entrust the research either to active fund managers or to the market itself – that is, to invest in an index fund. Here you should choose how you plan to evaluate the investment. If you are going to use traditional indicators, such as alpha and Sharpe ratio, then these investments should be equated to equity investments. You will use these assets to improve the risk-return ratio in your portfolio.
On the other hand, if you think that the manager’s task is not to make profits in dollars, but to increase the growth of your cryptocurrency portfolio, measured in cryptocurrencies, you need to consider them as a separate asset class. Do you plan to sell your cryptocurrency portfolio after retirement for cash to spend it alone? Or are you going to earn on cryptocurrencies and thus replenish the retirement account?
This decision has nothing to do with correlations, trading volume, market capitalization, expected returns, corporate governance or regulation. It’s about how you plan for the future. If you consider cryptocurrency as a potential way to increase your wealth, invested in traditional assets, they should be attributed to traditional asset classes. If you believe that they will open the way to a new type of wealth, you need to allocate them into a separate class.
What Determines The Bitcoin Price?
Many are closely watching the price of Bitcoin, but few know how it is determined. Bitcoin is very different from traditional assets, such as stocks and commodities, so the calculation of its quotes is associated with some features. We will tell about them in more detail.
What does Bitcoin price really mean?
Speaking about the value on a particular exchange, usually, imply the price of the last transaction made on this exchange. For example, the fact that Bitcoin at Bitstamp costs $ 10,000 means that the last transaction made on this exchange was held at this price. When a new deal takes place, the price will change accordingly.
Pricing
The process of determining the price is that buyers and sellers are found on a cryptocurrency exchange (or another platform) and, by experience, find the value that suits both parties. Buyers want to buy bitcoins as cheap as possible, sellers tend to sell them as expensive as possible. To make a deal, both parties must come to a compromise. As mentioned earlier, the current value of Bitcoin on any exchange is the latest price that sellers and buyers agreed to. Let’s take a closer look at how the parties come to a compromise on the cryptocurrency exchange.
In order to answer this question, you need to understand what bitcoin is and understand the bitcoin mining process. Let’s start with the first question: What is bitcoin? Bitcoin is the value of any unique information. In fact, you can call this value even bitcoin, even blablabla, the meaning does not change. What is unique information? This is information on the network that is not yet freely available and therefore has some value. What is mining? Mining is the process of extracting blocks of unique information, the cost of which is expressed in bitcoins, programmatically. There is a written content about the mining of various articles and reviews, both for “dummies” and for people who are technically savvy, therefore, we will not dwell on this article. So what does the cost of bitcoins (bitcoin)? To be more precise, the question from the mouth of people with an economic education or associated with the exchanges (currency, stock – no difference), what provided Bitcoin? The answer to this question first plunges into a stupor. Nothing. That is, it is not provided with gold, as it was almost until the end of the last century with ordinary national currencies, it does not depend on the GDP of a particular country, it is not regulated by any particular state within its own monetary policy, Bitcoin cannot be printed on paper and declared the cost of this paper.
Makers and Takers
Changing Bitcoin quotes is usually attributed to the presence of a larger number of buyers or sellers on the market. However, this is completely wrong. In each transaction, there are two sides, so the number of buyers and sellers, taking into account volumes, is always the same. In fact, high activity of one of the parties, ready to pay the spread, leads to a change in quotations. Spread is the difference between the highest bidder’s price and the lowest seller’s price. Suppose an investor is willing to pay $ 9,350 for bitcoin, and the seller wants to get at least $ 9,400 for it. In this case, the spread is $ 50 (9400−9350).
How do takers affect prices
Suppose that buyers are convinced that in a few days the cost of Bitcoin will grow to $ 10,000. In this case, they act as takers and are willing to pay the spread, buying up the entire volume of cryptocurrency offered at $ 9,400. If Bitcoin goes up to $ 10,000, they will get a $ 600 profit. When buyers swallow up all the coins offered for $ 9400, they will go to the level of $ 9450, then to $ 9500, and so on. If buyers show excessive activity, sellers will soon understand this and begin to raise the bid price. The process will continue until the pressure of customers is exhausted and then change direction. Over time, such impulses lead to a rise or fall in quotes.
What is crypto trading?
Crypto trading is a classic form of cryptocurrency trading, which involves opening speculative positions to buy or sell a token of one or another digital cash. When investing through the stock exchange, you can earn solely on the growth of cryptocurrency, trading through a broker can increase your financial investments through both buying and selling.
Trading in cryptocurrencies is a good opportunity to earn on the change in the value of the asset. The volatility of virtual coins remains quite high, the rate fluctuations per day can be several%, which means that you can get a good profit due to this. Cryptocurrency can be traded both on the stock exchange and on Forex brokers sites.
Advantages of crypto trading
At present, everyone can carry out trading operations in cryptocurrency. Despite the increased risks of investing in cryptocurrency, more and more people are ready to overcome their fears, because “on the other side” there are incredible prospects for profit. However, you should not hope for a quick income, because to successfully earn on trading, you need to have a sufficient amount of knowledge.
Despite the active development of altcoins and their numerous appearance, an investment portfolio of cryptocurrencies should be formed around Bitcoin. That it is the basis of the new financial industry. For eight years, Bitcoin has been showing steady growth, which makes it a reliable tool, characterized by long-term progressive growth. Every day the volume of trade in Bitcoin is growing, which directly affects its liquidity, increasing it. However, do not forget about other cryptocurrencies. It is necessary to monitor how their course changes. This will allow time to invest money in “hot” coins, selling them later at a more favorable rate, when the potential of their growth will be exhausted.
How to start trading
The creation of wallets and registration on the sites and the most interesting begins the choice of investment strategy. You invest your money, and the profit depends on how accurately you estimated the situation in the financial market. Reliable start – the use of proven sites. What are the ways to trade are considered modern classics?
– Acquisition of portfolios of large funds, for example, the GBTS investment fund, a sure start. However, cryptocurrency is sold by a mixed set, and the GBTS exchange imposes a decent commission on all operations.
– Exchange of cryptocurrency directly between wallets. You find a trader and buy/sell him a cryptocurrency without intermediaries. No commission, but no guarantees.
– Hybrid trading (exchange-broker-wallet) through the exchange-platform. Choose the right space for the realization of your ideas (we stopped at the cryptolocator.com marketplace and Coinbase exchange) and embody them.
Summary
These are the most famous and popular ways to make cryptocurrencies, but here everything is limited by your creative abilities. But one way or another, you should carefully study the material on the topic and do not expect easy and quick money, because this can lead to strong disappointment in the first stages. To begin with, it is important to decide who you will be – an investor, a miner, a trader, and only after that take the first steps.
What’s all that SEC decision everyone’s discussing?
The world of cryptocurrency exploded with relief – US regulators made a decision on the ICO (initial placement of tokens), stating that companies should receive through the sale of electronic assets that must comply with federal securities laws. For this year it was decided by the prices. Nevertheless, analysts, issuers and lawyers have already stated that its consequences will be positive.
The US Securities Commission (SEC) has published a report of an investigation into the DAO. During the “placement” period from May 28 to August 2016, about 700 people from the United States bought DAO tokens. The investigation was to answer the question of whether the US securities regulation was violated during the DAO project implementation by the German company Slock.it, the persons involved and intermediaries.
Why did it happen in the first place?
Recall that in October 2016, CEO of the Digital Currency Group (DCG) Barry Silbert warned in his forecast for 2017 that the next big step for the SEC could be a close examination of the activities of the organizers of cryptocurrency tokens (ICO). As Silbert noted at the time, it is possible that such crowd sales will be classified as securities trading and, accordingly, will have to be regulated.
It should be noted that the regulation by the SEC concerns only those tokens that, when issued, were positioned as stocks and correspond to Howie’s test. That is, these measures will not affect classical cryptocurrency tokens (coins), including Bitcoin, broadcast, etc. Thus, the SEC poses a serious barrier for American companies and private investors in the organization and participation in the ICO, if the project creators do not register it with the SEC.
Did the market and neighborhood respond to the news somehow?
Probably, we will see a more restrained spread of ICO in the United States, since adherence to the SEC rules in some cases requires the disclosure of a large amount of information from both the fundraising company and the participants in the offering.
This does not necessarily mean a decrease in the number of cryptocurrencies since the number of ICOs outside the United States can only increase. Klukhenek notes that American companies with a blockchain business may switch to more traditional financing mechanisms – attracting venture capital or private capital.
What does SEC’s choice indicate?
It depends on the circumstances of each transaction. However, it is clear that the “virtual” nature of the organization that sells securities based on the blockchain for other types of digital currencies does not exempt it from the regulation of American securities laws. Steve Obi, a partner at law firm Jones Day, says that you can determine if tokens are securities using the Howie test. This is a legal criterion that is used in American judicial practice to determine whether a particular instrument or a commercial transaction is an investment contract and, accordingly, security. The test includes four signs: investment; common enterprise; waiting for profit; third-party efforts.
Regarding the organization of The DAO, which was the subject of an investigation, the SEC decided not to view the situation as a crowdfunding contract, because, among other things, the project was not a broker or a fundraising portal registered with the SEC and the Financial Institutions Agency (FINRA).
What Is A DAO?
DAO – a decentralized autonomous organization is a type of future organizations for ideal workers who are fed up with unproductive meetings, trips to work only to see someone in person, or the execution of boss orders, whose expertise is not particularly believed. We are now in the early stages of launching these futuristic companies. And the first attempts come up against certain problems, which is quite expected. But the most important thing in the DAO concept is precisely its decentralized essence. There is no boss or executive director at DAO, a blockchain-based organization. And there is a customizable set of working relationships that are constantly self-organizing to achieve certain results and implement certain projects.
In the future, it will be easier to get coins than now. Today, the most common way is to buy bitcoins for dollars, euros, yen and other currencies, and then to buy bitcoins for tokens or coins of the DAO whose member you want to become. Also, to enter the DAO, now you can buy another cryptocurrency, the ether (based on the blockchain Ethereum). For many, the Coinbase cryptocurrency platform is the initial gateway for the transition from the fiat world to the cryptocurrency one. Next, users go to such exchanges as EXMO, Bitfinex or Kraken.
What is the difference of DAO?
The DAO is a brand new type of organization that is best described by comparison with a digital company that is not tied to any legal entity. It should be noted absolute impartiality in the selection of participants. Using the implementation of smart contracts from Ethereum, The DAO allows anyone from all over the world to participate in the management of the general fund of funds.
Principles of work in the DAO
And there is another potentially huge advantage to this structure. Because DAO is organized around smart contracts and values, not people and roles, flexibility and agility for innovation increase significantly. To begin with, any owner of a DAO token can make an offer, where he will indicate the amount of ETH that will be required to develop a product or service. The proposal also defines the level of control over the powers with which The DAO should vest potential contractors.
After making a proposal, the owners of DAO-tokens participate in the voting. Each of them has absolute power over their own funds invested in the project. They can also vote for changing the service provider or changing any other offer parameter. Moreover, even if the owner of DAO tokens subsequently decides to leave the project, he or she will still have the right to make a profit from the sale of a product or service.
The logo of Bitcoin (virtual currency) is pictured on a door in an illustration picture taken at La Maison du Bitcoin in Paris July 11, 2014. REUTERS/Benoit Tessier
Criticism
Another point is related to the platform on which The DAO operates. The “wise crowd” of people supporting The DAO may be so absorbed in the hype around ETH that, in choosing projects for support, it will start to give preference to Ethereum and related ideas, the usefulness of which, according to experts, has not yet been proven.
Demonstration to Bitcoin Mining Pool
Bitcoin mining is a transaction verification process done by computerization on a decentralized network. Mining a pool is another approach of power contribution used to smooth the mining process. Bitcoin mining can maximize the cost and sometimes it is not even lucrative because of the energy expenses. It is an essential practice of pooling where the processing power involves several computer systems solving the Bitcoin transaction blocks.
Benefits and Fees
There are some obvious benefits of joining a mining pool. If you are indulged into a mining pool, then you might have a higher possibility of winning Bitcoins with more processing power. This also includes a stable earning by signing up with a pool. Also, you might need to keep an eye on the numerous benefits available while searching for a mining pool. The tokens can be awarded according to your contribution to the pool processing power.
Likewise, you need to focus on the fees to the mining pools. This might be deducted from your rewards. The portion of fees generally varies from 1 to 10% of your share. There are some pools which may not deduct anything at all.
Shortcomings
Bitcoin mining pools have some shortcomings as well. Whatever the payback the pool gets, it will only be shared among the members. The policy will remain the same even if the yields are lower and you are a solo miner. Whether it is a feasible solution or not, depends on your sole objectives.
Troubles in Mining
Mining cryptocurrency may trouble you at different levels. Till now around 21 million Bitcoins are capped among which 80% of it has already been mined. It is becoming progressively robust for mining Bitcoin in a detailed to reach the cap. This implies the nigh but for a solo Bitcoin miner, it can be impossible to take on the big mining business. The mining pool makes an appealing alternative, particularly for Bitcoin miners. Apart from Bitcoin, you can mine immensely of other tokens as well.
Ideal Cryptocurrency Mining Token
For a beginner, it is worth to start with other cryptocurrencies other than Bitcoin. Try trading Altcoins in exchange to mine Bitcoin.
SHA256
Bitcoin uses SHA256 as the proof-of-work algorithm. If everything is fine with SHA256 means it would be difficult to mine Bitcoin without any devoted ASIC mining rigs.
Scrypt
Scrypt is another form of an algorithm which is mostly used by other cryptocurrencies like Litecoin. This takes comparatively less processing power for mining tokens.
Multipool Mining
The smart miners have a permitted system to mine the most profitable cryptocurrency regularly. Multipool mining is practiced for changing various mining tokens as the price fluctuates.
The Beginning of Bitcoin Mining Pool
Higher the mining pools, more chances you will have to win the Bitcoin processing power. This creates an attractive alternative for the Bitcoin miner to take part in mining pools.
Last but not the least; keep an eye on some different benefits you may be offered while shopping around a mining pool. The list is big enough for the sites of different mining pools you can sign up and enjoy the rewards.
Blockchain Scalability Issue: Is The Future As Bright As It Seems?
Ever since the world stumbled upon the word cryptocurrency, there has been a continuous excitement amongst tech-savvy enthusiasts. Blockchain innovations only add more to the drama by introducing more advancements to existing models and working on newer ones. Not long ago, no one would have ever imagined that there shall be a virtual currency form featuring a decentralized approach. It was not only a far-fetched thought but also one that seemed impossible. However, after the cryptocurrency’s release, more and more users are awakening to this new reality of possibilities and eager to decipher what more can it bring along.
But no matter how prosperous it goes on to become, it still faces the issue of scalability. In order to keep its growth stable, analysts need to address this issue of scalability at the earliest. Succeeding in this quest will offer cryptocurrency the traditional approval it craves from financial markets.
Blockchain’s Scaling Issue
It is not a hidden fact that blockchains can be severely impacted if they fail to capacitate scalability. This issue arises due to the nature of consensus protocols of the blockchain. As per the guidelines, each applicant node on a cryptocurrency network needs to process every transaction specifically occurring in that network.
This very feature allows blockchain to follow a decentralized approach but at the same time prevents this innovation the capacity to scale. Whenever a new transaction is processed one more block is added to the transaction ladder in the blockchain.
All those who wish to question the scalability issue with blockchain needs to see the large quantity of associated data with transactions. Initially, Bitcoin blocks were topped at 1MB equating to 2,020 transactions. Yet, it was still possible to make infinite transactions on each coin. All these transactions are recorded on each block.
As the records grow and transactions continue, the block sizes kept increasing without limitations. Even if we increase the cap-size per block, it still remains difficult to keep scaling up.
This results in the blocks growing in size with processing times becoming longer than before.
Can This Issue Be Addressed?
Pressing transaction activities is a way to scale blockchain. By making use of the side-chains for small transaction management whilst tape-recording the consensus on the blockchain can ease this issue. If this is implemented, users will be able to make an offline transaction. In this regard, the first chain will only display information about the transaction and not become associated with it.
Another smart way to resolve this issue of scalability is by using small-sized networks. They have fewer nodes that help identify the scaling capability of the blockchain network. The small-sized network also makes it easier to get a result of all the transactions happening on the network.
Conversely, increasing the size of the blockchain may also offer a solution as more transactions will then be accommodated at a time.
Final Word
No one expected blockchain innovation to enjoy this widespread adoption upon its origin. Its ever-growing popularity demands that the issue of scalability be addressed. Furthermore, a permanent solution be implemented to eliminate further issues. Once this issue at hand is taken care of, users will be able to enjoy superior performance leading to increased users and pervasive adoption.
Open source platforms have come to the fore, and their global recognition is testament to the changing paradigms. The Internet, open source platforms and blockchains have a glue ring that can be easily identified. Several advantages of the blockchain technology can be illuminated in this light from different angles.
Blockchain as a distributed ledger that is immutable, publicly available and decentralized, uses the Internet and open source functions. Using the blockchain requires an internet connection, and the nature of the blockchain exists thanks to the open source design of Satoshi Nakamoto and his colleagues. The use of blockchain in the modern world extends to sectors such as investment brokerage, medicine, procurement and procurement, as well as education. Cryptocurrency originated from the blockchain, and for those who want to make money, learning Bitmex is helpful.
#1: Blockchain can facilitate payments
Earlier we mentioned that the information in the Blockchain is open to anyone. This means that you can see the transaction history and the way in which it was performed. Information about the size of the transaction is also open. At the same time, the identity of the addressee and addressee is not disclosed. This is the transparency of the blockchain. Access to Blockchain takes place using special keys that guarantee the reliability of the entire network. He has every user. The key is a set of cryptographic records. It is absolutely unique, which guarantees the impossibility of data substitution and hacker attacks. To do this, hackers need access to all computers on the network.
The blockchain has appeared along with the pioneer of all Bitcoin cryptocurrencies. We talked about its functionality and “responsibilities” above. Blockchain guarantees transactions and stores all data about them. Vitaly Buterin and his associates tried to make a qualitative step forward. Ethereum cryptocurrency blockchain is often referred to the second generation. He has his own particular architecture.
#2: Blockchain simplifies international payments
Obviously, the blockchain technology is relevant not only for cryptocurrency transactions, but for the entire FINTECH sphere as a whole. Everything related to transactions can be supported by the blockchain.
The prospect of Blockchain in the financial sector recognized the largest banks in the world. Back in 2013, the R3 consortium was created. Such banks as J.P. Morgan, Goldman Sachs, Santander, IТG and others. The group is engaged in testing a decentralized registry in the banking sector. Individual banks are also investing in blockchain startups that have been regularly appearing over the past few years. The interest of banks in technology is associated with the potential threat that cryptocurrency represents for them. Blockchain will help reduce transaction costs, make them safer. However, the implementation of a fully decentralized protocol in the banking sector will undermine it from the inside.
#3: Blockchain keeps a permanent record
The practicality of the blockchain is indisputable in all that relates to data storage and authentication. This decentralized data system has the potential to eradicate corruption. In the blockchain, you can record the dates of birth of people, financial transactions, fingerprints. Store information about documents like diplomas, passports, driver’s licenses. In the future, this may help in combating all sorts of fraud.
The world of digital money is so diverse and changeable that it is hardly possible to physically embrace and illuminate all the cryptocurrencies that represent it. Often, you just notice somewhere in the depths of consciousness the emergence of a new representative of this large pleiad and safely forget about it, until you accidentally come across information that somehow catches your attention. You start digging deeper and it turns out that the coin that you betrayed to oblivion is rapidly developing, approaching the first lines of various ratings.
Brief story
The beginning of the subject of our conversation was laid back in 2004 by Canadian programmer Ryan Fugger. He then worked on the Ripplepay payment system, which he launched in 2005. The development of the company took place at a moderate pace, but steadily, and after 6 years it was decided to create a decentralized network without mining, but with a higher speed than the cue ball. At this stage, the team added another member – Chris Larsen, who eventually led Ripple Labs. In 2012, a subsidiary of Ripplepay, the company OpenCoins, appeared. Its activity was focused on payment functionality and its improvement.
How to become the owner of Ripple?
In the distinctive features of the new cryptocurrency, we figured out, now let’s talk about how there are ways to get it into the property.
Well, the easiest way is to go to some specialized exchange or exchanger where Ripple is represented and buy coins. It is easier to do this through the exchange office. There is no need for registration, it is enough to pay for the purchase with funds from a bank card and coins will be transferred to your wallet.
The process of buying through a stock exchange is somewhat more complicated. You will need to register for an American specialized service and replenish the balance there. That is, you must have some kind of cryptocurrency (cue, lightcoin, etc.), which you will pay Rippl. However, there is nothing difficult in this process either, the standard procedure.
Cryptocurrency Ripple and its features
One of the features of this crypt, which can be seen “with the naked eye”, is the total mass of coins on the market – there are 100 billion of them. All this set has already been mined by Ripple Labs, that is, it is impossible to mine this digital currency. The company is engaged in the free distribution of its product. A little later we will focus on this process in more detail, but for now, let us return to the features.
There is only one serious feature left, which, perhaps, will plunge many into shock (so that we should leave the faint-hearted to retire). The fact is that in the process of conducting monetary transactions, the currency is destroyed. Well, are you already in shock? Jokes are jokes, but this really happens and this is how – the commission for each transaction, amounting to 0.00001 dollars, does not get to the miners, as in the PTS network, but is simply destroyed. On the one hand, this is, of course, a trifle, but, on the other hand, after each transaction, the money in circulation becomes, if not much, but less.
Why such oddities? All for the sole purpose of avoiding scam attacks. Now an attacker who creates hundreds, thousands, or even millions of mini-transactions aimed at hindering the normal functioning of the network becomes unprofitable such as “subversive” activity. In the event of an attack, the commission will increase to a level that is guaranteed to make an attempt by fraudsters to be unprofitable. For a normal user, the loss of a tiny commission does not make “weather”, but for a spammer with millions of operations, the loss can result in a significant amount.
Is it worth investing in Ripple?
Of course, everyone gives the answer to this question to himself. But good to know and expert opinion. And they, besides those listed above, mark several other points in favor of Rippl.
To begin with, the support of the market value of the coin is due to its potential growth in the eyes of large financial organizations and institutional depositors. The company is protected from problems with regulatory bodies, because its work is carried out in accordance with the law, and the board of directors consists of quite influential and well-known people who, if something happens, can influence the situation.