What is Bitcoin? 0 178

What is Bitcoin?

One blame it of being a speculative bubble, while the others call it a digital revolution – everybody has its own opinion about world’s first cryptocurrency — Bitcoin. Some people believe that cryptocurrency era that began with Bitcoin back in 2009 will become one of the greatest events in the history of economy, the others believe that digital bubble is likely to blow up soon. Anyway, everyone talks about Bitcoin and some even manage to make millions on it. The Coin Shark will explain, what Bitcoin is in simple terms.

Researches came up with different ideas to create a decentralized cryptographic currency already in the end of the 20th century. In 2008 a mysterious person or a group of people called Satoshi  Nakamoto, that still remains unknown published the description of a peer-to-peer payment system. This means that each user of such a network has equal rights – there’s no center and periphery, server and client.  

Bitcoin is a decentralized digital currency. Decentralized means that all transactions are made directly between users without any agents, like banks, payment systems, and without government control. Digital means that Bitcoin exists as a recording of transaction data. The data is recorded in blocks and the system of all blocks is called blockchain. This technology is the basis of Bitcoin, other digital currencies and blockchain-platforms. Each block is the result of calculations — a certain algorithm necessary to record information in the block. These calculations are carried out by miners, who create new blocks and receive a reward for that. The whole blockchain is located on every user device, So there’s no way someone can hack this distributed database unless they can access hundreds of thousands of devices at the same time. Safety and reliability are indeed Bitcoin’s major advantages. However, there is also the flip side of the coin. It is not possible to cancel or change transactions after they are made, so you’d better check everything very carefully in order not to send your cryptocurrency to somebody by mistake.

Bitcoin’s issue is limited — miners can generate as much as 21 million BTC. By the way, the more blocks are there, the more computing power is necessary to produce new ones.

Today many people use Bitcoin not only as an investment tool, but also as a mean of payment. According to Forbes, first Bitcoin transaction was made by an american Laszlo Hanyecz. Back in 2010 he offered 10,000 ВТС for a delivery of two pizzas. Today, as one digital coin costs around $11.5 thousand, it is possible to purchase real estate, pay for a hotel room or to pay in shops with Bitcoin.

Bitcoin’s greatest potential are independent transactions. Perhaps it will become a foundation of new and really free economy, that does not depend on central banks and state regulatory authorities. This currency exists as long as there is the Internet. On the other hand, Bitcoin does not have any physical value that it is based on, so Bitcoin rate can be rather volatile  and depend on speculations. Anyway, today Bitcoin would be an appealing investment, that is definitely worth trying unless you sell all your property to buy BTC.  

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How to Keep Your Cryptocurrency Wallet Safe? 0 57

How to Keep Your Cryptocurrency Wallet Safe?

Are you sure nobody can steal your wallet right from the pocket? Well, it might happen while you commute in the public transport, stay in a line to buy hot dogs or just walk along the street. Yes, everyone has to be very careful. Is it different in cyberspace? Of course, it’s not. It’s better to keep your cryptocurrency wallet secure and today The Coin Shark will briefly tell about some key steps everybody should make to ensure their crypto funds safety.

Although cyberpirates can potentially board every vessel in the cyberocean, users often lose their money because they themselves do not take security measures serious enough.

First of all, it’s good to backup cryptocurrency wallet data so that you will manage to restore it in case your device gets broken, burn down, is stolen or if your cat drops a cup of water on it.

Secondly, you can learn poems, remember sequences of numbers or objects, so basically train your memory not to be afraid of a long random password. Or just write it down on a piece of paper. 15 characters and more, lower and upper case, letters, numbers, symbols and so on – try to make it more complicated than just a birth date. 

Thirdly, private key security is vital. Only wallet’s owner should know it and use to “decipher” transactions and, actually to put virtual currency into their cyber pocket. If you keep your private key on your device, you can encode it, especially if somebody you don’t trust enough can access your computer. It’s also useful to prevent yourself from being a person whose kid has accidentally spent all cryptocurrency. You can also store your private key offline – on a piece of paper or USB.

You also need an efficient antivirus. In particular, it will protect you from keylogger software that can record which buttons you press on the keyboard, or from phishing, when you follow malware links and let hackers get your passwords.

The wallet type also matters. If extra security is more important for you than extra convenience, then you’d better use a hardware wallet. Online and especially exchanges wallets are very convenient and won’t require gigabytes of available memory on your device so that you can manage your cryptocurrency using a mobile phone. However, hardware wallets download the whole blockchain on your computer, interact directly with it and don’t need any agents like online services or exchanges that can have security flaws. In addition, hackers found bugs in the transaction code of Mt.Gox exchange and manage to steal $460 million in Bitcoin. However, if you trade your cryptoassets on exchanges, you will need an online wallet to makes deals fast. Anyway, hardware wallets are probably the best to store cryptocurrency but online ones are required for quick operations with digital coins.

So, security is a really important issue of crypto investing. As cryptocurrency market expands and prices for virtual coins grow the crypto fraud is likely to increase and develop.

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Pavel Durov: Who’s He And What Does He Have to Do with Cryptocurrencies? 0 67

Pavel Durov: Who’s He And What Does He Have to Do with Cryptocurrencies?

Pavel Durov is a 33-year-old entrepreneur from Russia who created the largest European Social network Vkontakte back in 2006. Millions of people from Russia, Ukraine, Belarus and many other countries joined “VK” and have been enjoying its user-friendly interface and functionality.

In 2013 Pavel’s business reached global level when he created Telegram together with his brother Nicolai. By that time he also left Vkontakte. Telegram is a popular cross platform messaging app. Early in 2018 it had 200 million active users and Pavel noted that 600 thousand new users joined the service daily.

Vkontakte was really a breakthrough back in 2006 when the russian online space had no such kind of social network and even Facebook was launched only two years ago and became available to every Internet user the same year as Vkontakte. Telegram, however, was not the first messenger as of 2013. Whatsapp, Facebook Messenger and Viber, without mentioning Skype and other veterans, had already existed for several years and gained popularity. Anyway, Telegram did not only manage to take its share of the market but also actually became the best messaging app that has really user-friendly interface, is fast and very secure. Telegram ensures such a great privacy that some countries try to ban it, especially after it was revealed that terrorist organization ISIS members used it for communication and propaganda. Today state authorities and secret services cannot access private user dialogues due to special encryption methods with generated private keys.

Pavel left Russia when started developing Telegram. He’s now travelling together with his developers from one country to another and does not want to settle down somewhere. The New York Times quotes Pavel: “I’m very happy right now without any property anywhere. I consider myself a legal citizen of the world”. Besides, a billionaire Pavel said that in Russia he met some very rich people with private ships, aircrafts and luxury estates and that he did not wanted all of that for himself.

So what does Pavel Durov have to do with cryptocurrency? The Coin Shark has already posted an article about Telegram planning to launch a blockchain platform called Telegram Open Network (TON) with its virtual currency Gram. Telegram holds the largest token sale ever to raise money for the project. During the private pre sale Telegram is said to collect around $850 million, and is going.to raise billions during the token sale itself. However, Gram tokens are not available for a large number of investors and there’s a little official information about the token sale.

Telegram’s going to revolutionize blockchain by creating first massively adopted easy-to-use cryptocurrency available for everyone. Users will be able to use TON to carry out fast transactions directly in their messenger, launch ICOs, develop their own virtual currency and much more.

Telegram token sale is often referred to as the greatest current cryptocurrency market event and who stands behind it is Pavel Durov together with his developers team.

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