Money Talk

Architecture cryptocurrency

Submitted by wafarifki, , Thread ID: 134014

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15-06-2019, 05:40 PM
#1
Decentralized cryptocurrency is produced by the entire cryptocurrency system collectively, at a rate which is defined when the system is created and which is publicly known. In centralized banking and economic systems such as theFederal Reserve System, corporate boards or governments control the supply of currency by printing units offiat moneyor demanding additions to digital banking ledgers. In case of decentralized cryptocurrency, companies or governments cannot produce new units, and have not so far provided backing for other firms, banks or corporate entities which hold asset value measured in it. The underlying technical system upon which decentralized cryptocurrencies are based was created by the group or individual known asSatoshi Nakamoto.[23]

As of May 2018, over 1,800 cryptocurrency specifications existed.[24]Within a cryptocurrency system, the safety, integrity and balance ofledgersis maintained by a community of mutually distrustful parties referred to asminers: who use their computers to help validate and timestamp transactions, adding them to the ledger in accordance with a particular timestamping scheme.[14]
Most cryptocurrencies are designed to gradually decrease production of that currency, placing a cap on the total amount of that currency that will ever be in circulation.[25]Compared with ordinary currencies held by financial institutions or kept ascashon hand, cryptocurrencies can be more difficult forseizureby law enforcement.[1]This difficulty is derived from leveraging cryptographic technologies.

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