How Does Bitcoin Work? A Detailed Review of the Most Popular Coin 554

bitcoin works

2017 can be surely called the year of cryptocurrency. It was last year when their existence became known to the general public. At the moment there are more than a thousand different coins. Most of the credit, of course, belongs to Bitcoin. Demand for Bitcoin is quite large, even if we take into account the current drop of the course. In this article we will explain how cryptocurrency is arranged, how it is mined, and we need it in general. We will take the most popular coin – Bitcoin – as an example.

Contents:
(please click the topic to scroll down to it)

  1. What are cryptocurrencies and why do we need them?
  2. What is Bitcoin transaction or how is Bitcoin transferred?
  3. How does a Bitcoin farm work or where do new coins come from?
  4. How to use Bitcoins?
  5. Conclusion

1. What are cryptocurrencies and why do we need them?

Cryptocurrencies are digital money, the main feature of which is absolute decentralization. Unlike Qiwi, Webmoney, Yandex Money, etc., there is no single server for cryptocurrency, blocking which you can “stop” the whole network.

In simple words, cryptocurrencies are absolutely independent of any systems (public, banking, financial, etc.). A similar “superpower” is given to the coins by the technology, based on which they are created – blockchain. With this technology, you can consistently encrypt any data, not necessarily financial transactions. This data register (if we are talking about cryptocurrencies, the transaction list) is stored on tens of thousands of computers all over the world simultaneously. The interaction between the participants is built on absolute equality. Each user is both a user and a server, similar to the peer-to-peer system used in uTorrent.

At this point in time, there is no such technology that could compromise, replace or block blockchain (in case of a large community). You will simply need a titanic amount of processing power to carry out such an action.

Another feature of Bitcoin (BTC) and other coins is their absolute autonomy. Intermediaries are not required for the correct operation of cryptocurrency, so there are pretty much no fees when making transactions

2. What is Bitcoin transaction or how is Bitcoin transferred?

Daily transactions in the Bitcoin (BTC) network only amount to about $4 billion. If you want to sell more than buyers want to bue, the rate of Bitcoin rate, in the opposite case it increases. This mechanism is understandable to the vast majority of people, but not many people understand how the Bitcoin transaction is carried out from a technical point of view. Let us try to explain this issue in simple words.

When transferring Bitcoin from one wallet to another, a section of data confirmed by a unique signature is collected in blocks. Each transaction is unique and there can not be two identical ones. The information stored in the section is mostly information about previous transactions that are encrypted into a special code (hash). Blocks are connected in chains, which are necessary both for checking the implementation of the payment itself and for physically implementing special transaction parameters. Generally speaking, each new transaction stores data about all previous payments from the chain of blocks

3. How does a Bitcoin farm work or where do new coins come from?

Fiat (paper) money is printed on the currency court, precious metals (including gold) are extracted from the depths of our wonderful planet, but where do bitcoins or other digital coins come from?

As we said above, cryptocurrency does not have any single centers and it is logical to assume that coins are produced by the forces of the entire community. Mining (extraction) of cryptocoins is carried out by providing the platform with computing power of the equipment. People who want to start mining bitcoins should install special farms, which consist of video cards or special network equipment for mining (ASIC-miners). Using its computing power, equipment solves complex equations and collects data into blocks. For this, the Bitcoin algorithm awards the miners with a certain number of coins. It was possible to receive 50 BTC for calculating the first block, after 210 thousand blocks are extracted, the reward reduces by half. At the moment it is 12.5 BTC per block.

The emission of Bitcoin is limited to 21 million coins. Despite the fact that more than 17 million coins have already been mined, the last piece will be mined not earlier than in May of 2140. Satoshi Nakamoto (pseudonym of the Bitcoin creator) did this intentionally in order to prevent the inflation of the coin.

4. How to use Bitcoins?

Anyone with access to Internet can use the most popular cryptocurrency. In order to pay with Bitcoins in the Internet, it is enough to have a virtual wallet (such as Blockchain.info). However, it is not practical to store all your savings on such services. If you want to buy Bitcoins and leave them be for several years until the rate grows, then it’s better to use a cold wallet. You can read more about the classification of cryptocurrency wallets in this article.

If you want to get free coins, you can use bitcoin faucets – these are special services that pay tine shares of BTC for performing certain actions (viewing advertisements, clicking, registering in services, etc.)

5. Conclusion

Cryptocurrencies have recently been attracting more and more attention of the public. Bitcoin is considered the leader of the industry. Its operations are based on the technology of blockchain. For this reason, Bitcoin does not need a single center, regulators or intermediaries. All transactions are made directly from wallet A to wallet B. Data on financial transactions are stored in blocks. The work of the system is supported by the miners who provide the computing power of their own network equipment. For this, the system rewards them with a certain number of coins.

There is no need for deep knowledge in the field of cryptography for common use of Bitcoin. You just need to create a wallet and have access to the Internet to carry out transactions.

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Multifunctional Platform or Overvalued Project: Review of Bitshares 278

bitshares crypto

The project, which will be discussed today, is a truly universal solution, since it is simultaneously:

  • innovative software;
  • a payment network with a large bandwidth;
  • a decentralized stock exchange;
  • a banking institution;
  • cryptocurrency;
  • a community;
  • a decentralized and reliable database.

The developers of this coin took all the best from the original blockbuster Bitcoin and made a number of changes, which, in their opinion, the first cryptocurrency lacked. So, let’s begin our acquaintance with the Bitshares cryptocurrency.

Content:
(please, click the topic to scroll down to it)

  1. History of the project
  2. Technical information about the coin
  3. How to mine Bitshares?
  4. What are the Bitshares coins necessary for?
  5. Conclusion

1. History of the project

Basically, this project is the fruit of the labors of two people. The idea of ​​the Bitshares coin came to Dan Larimer back in the 2013. He spent a huge amount of work and managed to lay the foundation for the future development of the project. But it still wasn’t the coin we know today: Charles Hoskinson (one of the leading developers of Ethereum) helped. This rather media tandem played an important role in the successful launch of the project.

In early June 2013, entrepreneur Larimer showed the world his offspring, and then the first large investor appeared. After a short period of time, a full-scale presentation of the project took place in Atlanta.

The first product of the development team was BitShares (PTS) ProtoShares, for the creation of which the most advanced and innovative solutions in cryptography were used. After a short period of time, the project was renamed BitShares X, and many built-in services had already been integrated into it. The project was formed in the form, in which we now know it, as a result of the merger of several products into one in the fourth quarter of 2014.

2. Technical information about the coin

8 facts you need to know about the Bitshares cryptocurrency:

  1. It takes the 30th place in the global rating of CoinMarketCap;
  2. The capitalization of the coin is about 565 million dollars;
  3. The rate of Bitshares (at the end of July 2018) is about 21 cents;
  4. The network is built on the PoS algorithm;
  5. The claimed throughput is about 100 thousand transactions per second, although the current checks confirmed only 4 thousand / sec;
  6. Time of block generation takes from one and a half to three seconds;
  7. Remuneration is 1 BTS;
  8. The total issue of coins is 3.6 billion pieces.

3. How to mine Bitshares?

During the development of his new project, Larimer decided that the entire current mining concept could not withstand any criticism and needed reformation. In his opinion, the PoW algorithm can completely override the main feature of blockchain technology, namely decentralization. Since in countries with relatively cheap electricity potentially there can be large players who will be able to seize power over the network.

In addition, within the usual mining, the complexity of the network inevitably grows, which, over time, makes the process of mining coins unprofitable for the vast majority of miners who do not have large computing powers. A Bitshares coin can be obtained by anyone using an average home computer. You can also receive new BTS simply by storing coins on the official Bitshares Wallet.

4. What are the Bitshares coins necessary for?

This cryptocurrency can be used in various scenarios, but its main advantages are:

  • relatively low volatility, compared to other coins;
  • the existence of a unit of account;
  • the possibility of hedging, which can protect against losses.

5. Conclusion

The Bitshares project is a universal product, within which a variety of different services are integrated. The platform is already working for about four years and every year attracts more and more new users. The coin is included in the TOP-30 cryptocurrency projects, it can be considered as an investment asset. According to experienced traders, it is possible to allocate no more than 5% from the portfolio on BTS.

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ZenCash Coin Review: Is It the Best Anonymous Cryptocurrency? 291

The overwhelming majority of people believe that all cryptocurrencies are completely anonymous, but this is absolutely untrue. There are several projects on the market that really focus on anonymization. Such coins are not so many; the most popular of them are Dash and Monero. But today we will talk about the cryptocurrency, the developers of which assure that they were able to surpass absolutely everyone in the issue of the anonymity. Today, we will talk about the features, history and perspectives of the ZenCash coin.

Content:
(please, click the topic to scroll down to it)

  1. A bit of the coin’s history
  2. Features of the ZenCash project
  3. Principles of distribution of awards in the network
  4. Conclusion

1. A bit of the coin’s history

This project is a “fork of fork.” Initially, part of the community broke away from the ZCash coin within the ZClassic fork, and already within the latter there was another fork that today showed our hero to the world.

The development team is 100% sure of its creation, so does not hesitate to call it the best anonymizer on the market. Their words are also confirmed by industry experts who rated the project higher than such giants as Monero and Dash.

The ZenCash project is still at the earliest stage of its development, as the network began its work only in the fourth quarter of 2017. But despite this, the coin already has quite a lot of weight in the industry, occupying the 91st place in the global rating of CoinMarketCap for the time of writing the article (July 2018). The market capitalization of the coin is about 110 million dollars at the moment.

Such a dynamic development of the project is not accidental. The fact is that at the very beginning, ZenCash coins were supported by well-known and influential people:

  • Naval Ravikant, an early investor of many successful projects such as Twitter, Uber, etc.;
  • Roger Ver, one of the first cryptocurrency adepts, the creator of the Bitcoin Cash coin;
  • Barry Silbert, the creator of SecondMarket.

The list of names mentioned above is far from complete. This fork was highly appreciated within the framework of the crypto community, but many investors simply preferred to take advantage of the main feature of ZenCash and remain incognito.

2. Features of the ZenCash project

An important part of the ZenCash source code is an embedded data encryption algorithm that has zero knowledge. Due to the technology of Zero Knowledge Proofs, the network can provide total anonymity. Any data about the transaction in ZenCash is hidden from everyone except the participant who initiated the transfer.

Also, the ZenCash project has a number of tools that allow network members to not only make anonymous transactions, but also exchange messages and files:

  • Zen talk – allows you to attach small messages to transactions (up to 1024 characters);
  • Zen hide – allows you to circumvent increased censorship in the relationship of buyers and sellers (relevant for countries with poorly developed democracies);
  • Zen Pub – also allows you to anonymously attach and post various documents of IPPS and GNU Net formats.

3. Principles of distribution of awards in the network

ZenCash works on the PoW protocol, so the mining of this coin absolutely does not differ from the production of the bitcoin, for example. But the reward for the found block is distributed here according to a little peculiar scenario:

  • the most part, namely, 88% are received by the miners;
  • the operators of security nodes take away 3.5%;
  • 5% are used for further investments in DAO;
  • 3.5% go to the project team wallets.

4. Conclusion

The ZenCash project is still too young, even by industry standards, but the team managed to achieve some success even in this short time. The online rate of ZEN/USD at the time of writing is $25.56.

This cryptocurrency is focused on providing absolute anonymity. As assured by many industry experts, ZenCash has a very good technological base, which allows investors to hope for a decent profitability. But it should be remembered that for the full-scale implementation of this technology, the team still needs to do a lot of work, so it is not worth hoping for “fast X”. This applies to the vast majority of promising projects, since it is physically impossible to grow into a multibillion-dollar company in a few months, this requires years of painstaking work.

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Cryptocurrency Prices for the 20th of July: the Cryptocurrency is Showing Growth 318

crypto price

According to the online platform Coin360, Bitcoin (BTC) has added 1.48% over the past 24 hours. The price at the time of writing is $7463 per coin.

Unlike BTC, most of cryptocurrencies in the rating are in the red zone:

crypto kurs

Bitcoin Cash lost 2.72% over the day and is worth $797;

Ripple decreased by 4.82% and is $0.45 at cost;

EOS minus 2.68% and its price is $8.31;

Litecoin lost 2.10% and is worth $85;

Cardano dropped by 2.60% and $0.17 at cost;

Dash added 5.72% – its value is $279 per coin;

Ethereum has lost 2.72% in the last 24 hours. Its price is $465.

The total market capitalization is $284 billion. Bitcoin accounts for 45% of the total volume. In monetary terms, this is $128 billion.

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So There Should Be Bitcoin: Review of Decred 587

cryptocurrency decred

A large number of projects have tried to challenge the cryptocurrency flagship, in attempts to shift the bitcoin from the honorable first place, but this has not yet been done to anyone for 10 years. There is no secret that the BTC has a number of shortcomings which its competitors are trying to solve. In the framework of this article, we will talk about another contender for the “cryptocurrency throne”, which has a number of interesting features and contradictions. So, what is a Decred (DCR) coin?

Content:
(please, click the topic to scroll down to it)

  1. A bit of the coin’s history
  2. Basic information and advantages of the Decred project
  3. Disadvantages of the coin
  4. Conclusion

1. A bit of the coin’s history

Decred is a rather unusual altcoin. Firstly, no initial placement of coins was made for its creation, all funds were provided by the development team. And secondly, the so-called company 0, which has a direct bearing on the initial promotion of bitcoin, has put its hand to its creation. These two facts strongly highlight this project against the background of the other altcoins.

The announcement of the Decred coin took place in 2016, but its road map was kept secret from the public until the first quarter of 2017. To attract participants, the development team decided to distribute the first 5,000 tokens free of charge. Company 0 went from the opposite, they did not ask for money from investors, but rather handed them out. It is worth noting that this plan worked perfectly, and the already good excitement around this project went up with a new force.

2. Basic information about the project

Creating a new coin, the development team took all the best that was in the original blockchain of bitcoin, and also made a number of improvements:

  1. The combination of the PoS and PoW protocols, which in tandem are able to solve one of the biggest problems that Bitcoin is facing, it is decentralization. The fact is that every year the first coin increasingly depends on a narrow circle of the largest miners, the total capacity of which can soon exceed 50%.
  2. Ability to scale blocks.
  3. The low complexity of the network, which allows you to mine a coin without having a huge amount of processing power.
  4. The PoS protocol solves another very important problem, namely the hybrid system of consensus, which allows all participants to vote equally for certain innovations.

3. Disadvantages of Decred

From the information mentioned above, we can conclude that the coin is an excellent tool for investment, but like any other cryptocurrency, Decred has its shortcomings, which we cannot fail to mention:

  • Firstly, the coin has not quite a cohesive community, but a similar picture can be seen within almost any cryptocurrency;
  • Secondly, a large number of skeptics are sure that Decred is a blank that was artificially inflated and in the near future nothing except memories will remain of it.

But, for the sake of justice, it is worth noticing that such statements are not supported by any adequate arguments, so they can be considered a healthy criticism with great reserve.

4. Conclusion

Speaking of Decred cryptocurrency, we can say that the project has everything necessary to take its place in the industry. The development team makes every effort to keep up with its RoadMap. The coin is only 2 years old, but it already enters the TOP-30 in the global ranking of Coinmarketcap.

The symbiosis of the PoW and PoS protocols is not unique in the market, but in this case it can bring good results, since such an approach can solve a large number of problems and take the coin to a new level. We will not guess, but we promise to closely monitor the development of events and inform you in a timely manner.

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Cryptocurrency Prices for the 19th of July: Bitcoin Balances at the Price of $7300 594

According to the online platform Coin360, Bitcoin (BTC) lost 0.54% over the last 24 hours, after a significant increase of 10%. The price at the time of writing is $7345 per coin.

price chart

Other cryptocurrencies in the rating also do not demonstrate stability and lose a little in price:

Bitcoin Cash lost 5.48% over the day; now it costs $816;

Ripple minus 5.52% and its price is $0.48;

EOS decreased by 3.18% and $8.55 in value;

Litecoin lost 4.24% and its price is $87;

Cardano on the background of the decline of the other cryptocurrencies is in positive territory – added 4.05% and is worth $0.18;

Dash plus 0.61% – its value is $263 per coin;

Ethereum has lost 4.33% over the last 24 hours. Its cost is $478 per coin.

The total market capitalization is $288 billion. Bitcoin accounts for 43.7% of the total volume. In monetary terms, this is $126 billion.

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Review of Smart Contract Technology: What Is It Used For and How to Work With It? 701

smart contract technology

If not all the representatives of the crypto world heard about smart contracts, then probably most of them did. Therefore, it is so important to know the details of the work of this innovative technology of “smart contracts”, the concept of which was announced a couple of decades ago, but was not fully realized in 2014. What is it, how can it be applied in practice, and what future, thanks to smart contracts, is the industry waiting for?

Contents:
(please, click the topic to scroll down to it)

  1. What is a smart contract?
  2. What is the advantage of smart contracts in practice?
  3. How to work with smart contracts?
  4. What is a smart contract for practice?
  5. How reliable is a smart contract?
  6. Conclusion

1. What is a smart contract?

A familiar look at the financial system changed in 2008 with the appearance of the first cryptocurrency, a coin that has a value that is not confirmed by physical assets. But year 2014 gave the mankind a way to regulate payments without the participation of intermediaries and such guarantors as lawyers, courts and other traditional institutions.

Intelligent contracts were enabled in practice by the blockchain. What is the essence of innovation? Smart-contracts are something like program code containing a complete package of information about an upcoming transaction. Logic is the simplest: it does not require the participation of a third party. If Mr. X wishes to transfer a certain number of coins to Mr. Y for a particular service, the transaction will occur automatically if the parties comply with the prescribed conditions. If they fail to be complied by any of the parties, the transaction will not take place.

Smart contracts do not provide for the presence and even potential participation in the relations of the parties of any arbitrator. Everything is extremely logical and simple – a smart contract, in fact, is no different from the usual contract, in which there are:

  • signatures of the parties that confirmed their agreement with the terms of the contract;
  • the subject of the contract;
  • the conditions under which the contract will be executed.

2. What is the advantage of smart contracts in practice?

The most important thing is the lack of the need to attract guarantors for the fulfillment of obligations. The parties do not need to apply to the notary, exchange and other third parties who by their signature / seal will attest to the intentions and obligations of the contract’s parties. Also, technology implies full transparency and security of information stored in the blockchain. As a result, the parties receive their benefits under the contract and do not pay the commission to intermediaries.

3. How to work with smart contracts?

In this regard, all the issues are fully answered by the Ethereum, known to all the crypto community. In it, the filling of a smart contract is intuitively understandable and accessible to everyone. On the official site Ethereum you need to download the purse, come up with your electronic signature and key. You can not only apply ready-to-use templates, but create code yourself.

4. What is a smart contract for practice?

The security guarantee provided by this technology allows investors not to risk when investing assets in the ICO. The investor had the opportunity not to rely on the success promised by the developers of the new coin, but to “insure” their funds by writing in the contract the condition for an automatic refund.

Technology is attractive in various areas, where contractual relations between the parties arise. Banks, companies involved in insurance, logistics, etc. are interested in it.

5. How reliable is a smart contract?

Since a smart contract is a program code, it is not without possible shortcomings. They can be associated with the complexity of its independent compilation, not always sufficient flexibility of the blockchain and insufficient scalability.

It should be noted that, in the event of an error in the contract, there are no methods for regulating the dispute. Everything is done by the program, and the court has no tools to evaluate the propriety of its incorrect work.

6. Conclusion

The technology of smart contracts has great potential. In fact, they can be used in absolutely any sphere of life. But in order to make smart contracts become commonplace, it’s still necessary to do a huge amount of work. To date, the most reliable and secure platform for entering into smart contracts is Ethereum.

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