October 31th 2008 is the day of origination of Bitcoin. It was that day exactly when the crypto currency was first mentioned. 3 months after the first crypto currency app was introduced and the first transaction took place several days after. It's worth mentioning that the idea of virtual currency had born long before the Satoshi's system was developed. The concept of independent and secure currency first appeared in 1999 novel Cryptonomicon.
Satoshi Nakamoto is the alias of the originator of Bitcoin, composed of three japanese words. The virtual nickname of the geneal developer of the crypto-currency is translated in English as follows: Satoshi - wisdom, clear thinking, resourcefulness. Naka - internal environment, interrelationships. Moto - foundation, basis. origin.
The difference between crypto currency and traditional money. Unlike the traditional money, reproduction of crypto currencies is independent of boundaries, governments and political relationships. The rate of a crypto currency is affected only by difficulty of its mining and demand for it for conducting transactions. Emission of a crypto currency can be performed by any programmer. Transactions of Bitcoin, which was created in 2009, began only in 2011, when widely available e-wallets and means of its transfering from one holder to another were introduced.
Types of crypto currencies.
There are over 700 types of CC with different rates and quantities of coins. One of them is a crypto currency named Bitcoin. The maximum amount of BTC in circulation is 21 mil BTC. In march 27th, 2017, its rate exceeded $3.000. As for june 21th, 2018, it's worth $2.732. It's capitalization exceeded $44 bil. All the CCs on CC stocks are quoted relative to BTC.
Generally speaking, a crypto currency is: The term appeared in everyday life after publication in the magazine Forbes in 2011, where the name of the crypto currency was mentioned. In other words, it is digital or electronic currency, which is produced on the Internet and is stored in virtual purses. Its physical analogue is merely absent.
What is Mining?
The process of creating virtual coins got its name because of the laboriousness associated with the process, comparable to the extraction of minerals. The essence of mining is to perform calculations of mathematical problems so as to find a certain value. The purpose of such operations is to obtain hash, which is a bit string of fixed length. After the code is decrypted, a new bitcoin block appears, with its own cryptographic signature. This signature is generated of the hashes of previous blocks.
Hash - this is the value calculated by the mathematical formula, for which the reward is given in the form of bitcoin. The faster your computer calculates hashes, the faster you earn bitcoin.
Blockchain: what is it? The system itself appeared relatively recently. So as no to delve into the main technical aspects of the operation, the technology of the blockchain can be described as a clearly structured database with certain rules ofuilding transaction chains and access to information, which prevents theft of data, fraud, violation of property rights, and so on.
Cloud mining is the process of bitcoin extraction using a remote data center with a shared calculating power. This allows users to mine bitcoins or alternative crypto-currencies without controlling the equipment directly. Most often, cloud mining services are used by users from countries with expensive electricity, which prevents them from creating mining farms independently.
These are the best Cloud Mining I could find and like to share!
https://www.eobot.com/new.aspx?referid=933558
https://hashflare.io/r/4DDD17FD
You can find more here but they are not so trustworthy as the above 2 listed.
What are bitcoin faucets?
Bitcoin faucets are a reward system, in the form of a website or app, that dispenses rewards in the form of a satoshi, which is a hundredth of a millionth BTC, for visitors to claim in exchange for completing a captcha or task as described by the website.
These are some of the best faucets I know that work always.
[Free Bitcoin] http://moonbit.co.in/?ref=c1c75dc09117
[Free Litecoin] http://moonliteco.in/?ref=bdad7de79a1e
[Free Dogecoin] http://moondoge.co.in/?ref=ec96f9d6ef89
[Free DashCoin] http://moondash.co.in/?ref=C57E55A126F8
[Free Ripple] https://coinfaucet.io/Account?r=vXfpaRJksrQ
http://bonusbitcoin.co/?ref=2F2CB6783D7E
http://bitfun.co/?ref=15967E0EEAFB
[Hourly Bitcoin] https://freebitco.in/?r=2453196
[Hourly Doge] http://freedoge.co.in/?r=1136515
A few of the names of some the currencies:
ZEC, BTS ,BCD, XLM, HSR, NEBL, BLZ, HST, XMR, QTUM, DOGE, NANO, XRP, LTC
What are the pools for mining? A pool is a server to which the capabilities of individual network members are connected. This technology allows you to combine the powers of individual miners to jointly solve the blocks generated by the system and distribute the reward for each solved block between the participants, depending on the distribution principle installed on the server. The contribution of each individual participant is measured in so-called "shares", each of which can receive a valid signature, after which the pool will receive a reward. There are several reward distribution algorithms: PROP - each participant receives a share of the award, depending on the proportion of their share, sent during the calculation. PPLNS - the participant's share is calculated according to the share, sent not for the entire period between blocks, but for a period defined by the pool, which is called "shift". This type of distribution is most beneficial to both pool and miners, whose work stably in the pool. PPS - the miner receives a fixed payment for each share he sends to the pool.
Clearly and comprehensive: what is the ICO? Because of the new price records of Bitcoin and Ethereum, a new way to market crypto-currency - ICO, or " Initial coin offering" has appeared and received recognition. Not everyone, however, understands what it is and whether it is worth investing in ICO. Besides, American attemps to regulate ICO were not quite sucessful so far. Those who are going to invest in crypto currencies might find it useful to know why.
As long as there were ASIC machines only for the SHA-256 algorithm, most of the miners switched to mining litecoin and its forks based on the scrypt algorithm, for which there was not yet created a special equipment. The construction of large litecoin mines was unprofitable, because a large number of video cards consumed a huge amount of energy and required a powerful cooling.
DogeCoin.
Such wow. Much Coin. Crypto currency, based on Litecoin Named after the Internet meme Doge and DogeCoin was made. Was presented on December 8, 2013. Unlike the other, Dogecoin's crypto currency has a fairly fast initial mining period.
Today there are more than 300 decentralized exchange services, but if you compare prices for the same currency pair on various exchange services, the best of them are easy to identify, which allow users to utilize the rate difference to the fullest extent so as to capitalize on it. This so-called crypto currency arbitrage is a simple and quick way to capitalize the current rates of crypto currencies. Crypto currency arbitrage is capitalizing on the difference of the cost of the same currency on different trading platforms.
Presence of the upper limit of total emission Irreversibility of transactions Independence from state or financial institutions Using Cryptography Decentralized accounting of digital units of account
Features of the crypto currency The main distinguishing feature of the digital currency in question is its decentralization. The Crypto currency is spread out on the Internet and, as it was already mentioned, does not have centralized management. Another advantage of electronic coins is their anonymity and the confidentiality of transactions. A crypto currency purse is just a set of symbols that is not tied to personal information and can not identify its owner.
There's another piece of basic information, so that you won't go on without getting to know the basics: Satoshi is the lowest possible share of bitcoin as for now (it was named on behalf of the creator of this crypto currency, Satoshi Nakamoto). How many satoshis are therein 1 bitcoin? As much as a hundred million (100 million).
Withdrawing a crypto currency through the exchanger is an option that will save your time, plus it is very simple. The main advantage is the opportunity to exchange or buy bitcoins for rubles, ETC and by almost any other means which you find the most convenient for you: rubles, credit cards, electronic money, etc.
The name "Bitcoin" appeared out of combination of two English words: "bit" (measuring unit of information) and "coin". Herewith, the name "Bitcoin" can be translated as "virtual coin".
Cryptocurrency for dummies The term "Cryptocurrency" came into use in 2011 after Forbes publication where it had been mentioned for the first time. Another way to putting it is that it's a digital or electronic currency produced in the Internet and stored there by means of virtual wallets. There is no any physical analogue for it at all.
Bitcoin Cash (BCC) forked from the Bitcoin's major blockchain on August 1, 2017 and reached the third largest market cap of all cryptocurrencies in several days after it. The fork happened due to unwillingness to get rid of some disadvantages of Bitcoin in new chain, namely to increase the number of transactions per second (to increase the maximum size of the block) and safety as well as to optimize the code to increase scalability and trouble-free growth of the number of participants.
One of characteristics of cryptocurrencies: there is no any central server to store the database containing all transactions of the system (it's a decentralized system like bittorrent). The fact is that all participants of the system have copies of the database and they constantly proof each other by means of special algorithms. It's all implemented on the basis of blockchain technology. This technology itself is probably even more interesting than the cryptocurrency created on its basis.
Altcoins are alternative cryptocurrencies launched after success of Bitcoin. The creators of altcoins usually try to enhance some functions of Bitcoin or to add new functions.
If you wish to start working with Bitcoin, the first thing you'll need is a Bitcoin wallet. It allows to make transactions, i.e. to purchase and to sell cryptocurrency. The major purpose of Bitcoin wallet is to keep the secret key which is required for access to Bitcoin address and, hence, to your assets. Technically, the Bitcoins are not stored anywhere, just secret digital keys giving access to public Bitcoin addresses and opportunity to "sign" the transactions are stored. It's the information the Bitcoin wallet is needed for.
1 satoshi is a 1/100000000 Bitcoin, i.e. 0.00000001 Bitcoin, 10 satoshis = 0.0000001 Bitcoins, 100 satoshis = 0.000001 Bitcoins, 1,000 satoshis = 0.00001 Bitcoins, 10,000 satoshis = 0.0001 Bitcoins, 100,000 satoshis = 0.001 Bitcoins, 1,000,000 satoshis = 0.01 Bitcoins, 10,000,000 satoshis = 0.1 Bitcoins
What is fork Now when it became clear how does the blockchain work, it's time to start talking about what fork is. The chain of transactions is continuous and straightforward. It means that usually it doesn't ramify. One of the definitions of the word "fork" is "a division into branches". It's the name of the event in the system when one large chain divides into two so that they start working independently from each other after division.
It's well known that cryptocurrency (for instance, Bitcoin) is created as a result of solutions of mathematical problems. But why is Bitcoin generated in precisely this way? To understand it, it's necessary to understand the meaning of the process called the cryptographic hash or hashing. So, hashing is transformation of input data of different sizes into input data of well-defined size by means of special algorithm (rules).
Hashing is transformation of an array of input data of different length into (output) string of bits of fixed length performed by means of special algorithm. Hashing is a unidirectional process.
Satoshi Nakamoto is a pseudonym of a person (or a group of persons) who developed the Bitcoin protocol and first software to launch it. It's still unknown who the Bitcoin creator is although there were lots of attempts to find out who was the developer of the first cryptocurrency but all of them were unsuccessful.
Litecoin: Litecoin was launched in 2011; it's a derivative of Bitcoin, its author is Charles Lee; it's second largest BTC fork after Namecoin; it's limited to 84 million coins.
Cryptocurrency exchange is a platform where you may purchase or sell Bitcoins for fiat currencies or to exchange BTC for altcoins.
Mining is not the only technology for creation of new blocks and emission. The alternatives are forging (minting) and ICO. Usually, only one technology is used but some cryptocurrencies use combinations of them.
The hashing cryptographic function gets a block of input data and outputs a small but unpredictable block. It's designed in such a way that there is no any fast way to achieve the required output and you have to keep searching until you find the appropriate value. Bitcoin uses SHA-256 as such function. Moreover, to increase the strength, SHA-256 is applied to the block for two times and is called the double SHA-256.
The image which is often used for the "doge" meme is a photo of shiba inus dog named Kabosu and original inner monologue typed in it.
In most cases, new cryptocurrencies are launched for specific purposes. While Bitcoin was designed exceptionally for transactions and is usually called the virtual gold, Ethereum, for example, is designed not only for money transfers but also for smart contracts. By the way, Litecoins acts like silver in the cryptocurrency world.
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