BITCOINS

WHAT ARE THE CRIPTOCOINS

BITCOINS

 

Cryptocurrencies

A cryptocoins or cryptocurrency is a digital form of exchange.

The first cryptocurrency that began to operate was the Bitcoin in 2009, and since then many others have appeared, with different features and protocols such as Litecoin, Ethereum, Ripple, Dogecoin.


Brief history of cryptocoins.

The first attempts to integrate cryptography with electronic money were made by David Chaum, through DigiCash and ecash, which used cryptography to anonymously return money transactions, albeit with a centralized issuance and settlement.

The concept or idea of ​​cryptocurrency was first described by Wei Dai, in 1998, where he proposed the idea of ​​creating a new type of decentralized money that used cryptography as a means of control, while the first cryptocurrency that was created was Bitcoin, created in 2009 by the pseudonymous developer Satoshi Nakamoto, which uses the cryptographic function set SHA-256) as its PoW scheme.
Subsequently, other cryptocurrencies have appeared, such as Namecoin, Litecoin, Peercoin and Freicoin.
 Many other cryptocurrencies have been created, although not all have been successful, especially those that have not brought any innovation.

Cryptocurrencies have been gradually gaining the attention of the general public and the media.
Since 2011, interest has increased rapidly, especially during the vertiginous rise of Bitcoin, in April 2013.

BITCOINS

However, the use of these cryptocurrencies in illegal activities, as well as the impossibility on the part of governments to establish tax policies on transactions carried out through such means, is controversial.
Bolivia has become the first country to explicitly prohibit the use of cryptocurrencies in June 2014.
In Venezuela, cryptocurrency mines have been dismantled, arresting their owners for money laundering, illicit enrichment, computer crimes, financing of terrorism, exchange fraud and damage to the national electricity system.

Characteristics in cryptocurrency systems guarantees the security, integrity and balance of their account statements through a network of mutually verified agents called miners, who are, for the most part, public in general and actively protect the network at maintain a high rate of processing of algorithms, in order to have the opportunity to receive a small tip, which is distributed in a random manner

 

Breaking the existing security in a cryptocurrency is mathematically possible, but the cost to achieve it would be unacceptably high.
For example, an attacker trying to break the Bitcoin work test system would need a computational power greater than that of the entire network of all the miners in the system, and even then, it would only have a 50% chance of success, in others words, breaking Bitcoin's security would require a capacity superior to that of technology companies the size of Google.

It is foreseen that in the future quantum computing could become a reality, which would break the balance in case the developers could not implement the system in time to use quantum-mechanical algorithms because it is a proprietary technology.

The cryptocurrencies make possible the so-called Internet of value, also known by the abbreviations IoV (from the English Internet of value), also called Internet of money which are Internet applications that allow the exchange of value in the form of cryptocurrencies.
This value can be contracts, intellectual property, shares or in general any property of something that has value.
Things of value could already be exchanged before using payment systems such as Paypal.
However, the difference between paying something with Paypal and paying with a cryptocurrency is that paying with PayPal requires payment to be made through private networks such as credit cards and banks, while payment using cryptocurrencies does not have intermediaries. .
It goes directly from the buyer to the seller.
In this way we have a universal transfer system of free value ofintermediations.

Allowing thus the reduction of the cost of the transaction since there is no intermediation,
Reduce times Someone could say that time is not a problem now because Internet payments seem very fast.
However in reality the settlements between the parties take their time and the seller receives the amount many days after the payment was made.