Tuesday, December 19, 2017

Units and Storage of Cryptocurrency

In the last 2 articles, we discussed basics of Cryptocurrency and mining in Cryptocurrency. In this article, we’ll learn Units and Storage of Cryptocurrency. 

Units and Storage of Cryptocurrency

Almost for all traditional currencies, the minimum value is 1/100 share or 0.01 ( cent for a dollar, a penny for a ruble, etc. ). In crypto currency, such a minimum unit is not one hundredth, but one hundred million or 0.00000001 ( satoshi for bitcoin, litoshi for litecoin, marcus for doge, etc. ). For example, 1 bitcoin – a hundred million Satoshi.

You can store crypto-currencies :

  • locally, downloading to your computer a special client-wallet, much like WM Keeper Classic;
  • online, registering with services like blockchain.info, removing the need for itself, constantly download huge amounts of information with the history of transactions on the network;
  • on exchanges, generating a purse address for receiving the necessary crypto currency, in its essence this method is similar to the previous one;
  • with the help of special hardware devices – crypto-currency wallets, providing a very high degree of security of stored products.

The basis of crypto-currency technology is :

  • decentralization (work in a distributed network without a single regulatory center);
  • anonymity, which is achieved by using an impersonal public bitcoin address in place of personal data both in traditional banking operations (combining Bitcoin technologies with anonymizers hiding this IP, you can achieve a very high degree of stealth);
  • the formation of transactions in sequential block-chains, information about which is transmitted to all nodes of the network, which makes it difficult to forfeit transactions or double-spending, even if the hacker breaks the algorithm and enters a false transaction into the block, this block is linked to others, the forgery will quickly open and will be rejected by the network, and in order to cope with this, an attacker will need to have computing power exceeding 70-80% of the capacity of the rest of the network, which in principle is impossible;
  • the use of encryption algorithms to protect the block (various cryptographic algorithms can use different algorithms of cryptography, for example, Bitcoin, Peercoin, Namecoin and some others use SHA-256, Litecoin-Scrypt, and Ethereum-Ethash).


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