10 Reasons you should launch a Crypto Coin
Jun 21, 2017 Posted / 4218 Views
In the past few years, the term cryptocurrency has been gaining rapid attention all over the world. Many people are not aware of the full potential of this digital cash system which uses the blockchain technology for its transactions. Blockchain technology is a peer to peer money transaction system or a digital ledger where all transactions will be recorded and can be seen by all the nodes in that network. It is a decentralized system in which there is no central server. Let's first see what cryptocurrency actually is.
Cryptocurrency is digital money created by advanced encryption techniques of cryptography. As its name suggests, it is not secured by people or trust, but by math. Cryptocurrencies are entries about token in decentralized consensus-databases. This database is a peer-peer communication system. Whenever any transaction occurs between 2 nodes in the network, all peers get the information about the transaction and there is no way to clear the record of an already done transaction. This property makes a cryptocurrency based transaction full of potential.
The commonly used cryptocurrencies are Bitcoin, Ethereum, Ripple, Dogecoin, etc. It is free of all governmental oversight.
Applancer gives 10 reasons why we should launch a crypto coin which is one of the most intriguing technologies available in the market now.
The transaction of cryptocurrencies is irreversible. After confirmation, no one can actually reverse the transaction because the digital currency is shifted from one node to another with the transaction recorded in all the nodes of that network. This record cannot be cleared by anyone. Therefore the transaction once done cannot be reversed by the government, the bank or even the data miners.
No transactions or accounts in blockchain technology are related to real world accounts or addresses. When a bitcoin is being sent from a sender to the receiver they both have a certain address which is a random lengthy code which has no real significance in finding out the person who send the money. But we can locate the flow of money.
When we purchase a real property, it involves many third parties like lawyers, notary, delay in the payment of fees, bank accounts. Blockchain technology is itself considered as a big database of property rights. Therefore if the transactions are done with the digital currency, once when all nodes register the transaction record, the transaction is complete. There is no central authority like a bank to verify and approve the transaction.
The transactions using the cryptocurrency does not need any fees as of now. When bitcoins are exchanged there are no transaction fees. But when more and more users indulge in digital coin transactions, they will rely upon third party services like Coinbase which acts as a platform for the exchange of currency between sender and receiver. It is equivalent to platforms like Paypal. They will charge a transaction fee but it will be much less than ordinary transactions.
There is no permission giving central node in the blockchain network. Everybody who has access to the internet can do a transaction if they have installed the necessary software so that bitcoins or other cryptocurrencies can be exchanged without any difficulty. There are a very large number of people who has access to the internet and mobile phones, but they can't just involve in the traditional exchange systems. But blockchain technology allows the user to do a permissionless transaction.
A large network of computers around the world uses the blockchain technology to jointly manage the transactions that occur between two nodes and store the records of those transactions. It is managed by the network, not by any central authority like a bank. Decentralization is a procedure that works on a peer to peer basis.
Since cryptocurrency is not related to any exchange rates, interest rates, or any other charges of any country, it can be used at a global level without any problems. This helps in saving a lot of time and money for business people than when they are using the bank based transaction procedures. Cryptocurrency operates at the global level and hence makes transactions really easy.
When we look at our bank account, the fiat money we see are all created by debts and the numbers in the ledger representing our transactions are debts.But cryptocurrencies does not represent any debts, they represent themselves. They are really like the coins of gold.
Cryptocurrency once sends cannot be reversed or counterfeited while in the traditional money transactions, there are credit card chargebacks. This is because the transactions are pseudonymous.
When we give our credit card to a merchant, we are giving our complete details to him, irrespective of the amount we pay with the credit card. Credit cards work on a pull basis where the customer's complete details will be taken. Whereas the cryptocurrencies operate on a push basis which allows the transaction easier and faster.
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
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