Tuesday, December 18, 2018

CoinCasso guide for Democratized cryptocurrency exchange platform

Almost everyone likes to save some time, right?
We also do, so let us introduce shortly and go with our main topic ;)

Hi everyone! We are CoinCasso!
COINCASSO PROJECT is a multilayer exchange platform and was created to facilitate the use of the cryptocurrency exchange as well as the cryptocurrencies itself for everyone, regardless of whether someone is a professional trader or a person who is just starting.

So, what does it mean to democratize exchange market, stock?

Actually - democratization and time saving have many in common... but first things first.

Especially for ones of you, who had no contact with, or the time to get into the topic of cryptocurrencies we prepared quickstart guide. Don't worry!

If you find it too basic - don’t worry too! We simply have to make sure that everything is completely understood for all of you, then we can move to more specific and complex issues that are the heart and core of our project. Let’s go!

What is a Cryptocurrency?

Cryptocurrency is a kind of alternative and digital currency which uses cryptography for securing financial transactions. Cryptocurrency is characterized by decentralized control with no third party involved as opposed to central banking systems. It was projected in order to let parties transact in a secure, transparent and immutable way.

Currently, more than 4000 cryptocurrencies are listed on over 7,500 special stock exchanges. Most cryptocurrencies are based on different types of blockchain technology. The code is usually based on open-source software.

From the financial side, the distribution of cryptocurrencies may be related to the Initial Coin Offer (ICO) procedure, aimed at gathering the initial capital necessary for the further development of the system. Another purpose of creating cryptocurrencies and tokens is token marketing consisting of their use in promotional and motivational activities, e.g. prizes in contests and loyalty programs. Tokenization is mainly carried out in the Ethereum environment.

The first and most well-known decentralized cryptocurrency is Bitcoin.

What is Blockchain?

Blockchain is decentralized and distributed database in the open source model in a peer-to-peer Internet network without central computers and without a centralized data storage space, used to record individual transactions, payments or accounting entries encoded with cryptographic algorithms. Blockchain is a public, anonymous, and verifiable register that anyone can access.

In other words, blockchain is simply a chain of blocks. In this context, a block is a piece of digital information stored in a public database called a „chain”. Blockchain is a growing list of records which are linked using cryptography. Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data. Blockchain records transactions between parties in a permanent and secure way.

Bitcoin and Ethereum are one of the cryptocurrencies based on blockchain technology.

What is Bitcoin?

Bitcoin (BTC) is a cryptocurrency created in 2009 by a person using the anonymous name of Satoshi Nakamoto. Bitcoin was designed by this mysterious character as an electronic payment based on mathematical proof.

Bitcoin was originally released as open-source software and is generally considered the first decentralized cryptocurrency.

Unlike the traditional currencies - dollars, euros, pounds etc., Bitcoin isn't controlled by any central authority, therefore, it is immune to almost every potential central authority "vice". The security of coins is ensured by a database distributed between peer-to-peer nodes called blockchain.

What’s more, in contrast to traditional currencies Bitcoin’s characteristic is also limited supply. There can’t be created more coins than it was intended for circulation. In the case of Bitcoin, it is 21 million units.

Bitcoin is a deflation currency, which means that its value increases with time. That way, currency inflation is virtually impossible. Bitcoin can be stored in online wallets and it can be transferred to any party which possesses a Bitcoin address. It is possible to speculate about the value of Bitcoin and therefore, it is worth to trade it on the cryptocurrency market and make profit attempts at changing BTC prices.

What is Ethereum?

Ethereum is a blockchain-based decentralized software platform featuring smart contract [link do smart contract] functionality created by Vitalik Buterin. It is a currency platform for handling Ether (ETH) cryptocurrency. Ether’s blockchain is generated by the Ethereum platform.

Thanks to the decentralized peer-to-peer network, on Ethereum, users can build applications, create scripts or contracts that can be saved in the blockchain. Ether is called „a younger brother of Bitcoin”.

ETH is on the cryptocurrency market and maintains a good price in relation to Bitcoin. It has been designed in accordance with high standards of safety and transparency.

Like Bitcoin, Ethereum operates on the basis of a decentralized payment network that allows anonymous internet payments without the need to use the services of a bank or other third party.

Ethereum provides a decentralized virtual machine, the Ethereum Virtual Machine (EVM), which can execute scripts using an international network of public nodes.

(ERC20 CCX Token is based on Ethereum but we will tell more about it in a separate article)

What is Smart Contract?

Smart Contract is a digital form of traditional contract and is a solution that ensures that all types of interpersonal transactions can be beneficial to all interested parties regardless of trust. Smart Contracts allow the performance of credible transactions without third parties. These transactions are trackable and irreversible.

The technology was invented and introduced by Nick Szabo in 1994.

Smart Contracts are simply programs that operate on the Ethereum platform as part of blockchain technology and have the same errand: legally bind anyone who intends to participate in the contract. It's nothing but code lines written in Solidity language comparable to JavaScript.

Smart Contracts’ advantage over the traditional forms of contracts is that they provide simplicity, a speed of execution and real-time update. They are characterized by autonomy and accuracy of self-fulfillment, which means that there is no delay in providing agreed contract terms.

Smart Contracts are another step in the progress that is made in blockchain technology, consisting in the transition from the protocol of financial transactions to a universal tool that will automatically implement contract terms in an automated manner, minimizing the risk of error and manipulation.

What is a token?

Crypto tokens represent a particular interchangeable and tradable asset or a utility that is often found on the blockchain.

Cryptocurrencies, altcoins and tokens are often used as synonyms. In fact, they are all different terms. Altcoins and tokens are two subsets of cryptocurrencies. Tokens differ from altcoins as they operate on a top of a blockchain making it easier to create decentralized applications. About 80% of existing coins are tokens because they are much easier to create.

For example, Ethereum supports the development of additional cryptocurrency tokens, and projects such as Tron and EOS began as Ethereum-based tokens.

What are Altcoins?

Altcoins are simply cryptocurrencies other than Bitcoin.

The main difference between altcoins and tokens is in their structure. Altcoins are separate currencies with their own separate blockchain.

The most popular altcoin is Ethereum.

What is a Stablecoin?

Stablecoin is a cryptocurrency meant to hold stable values. The value of a stablecoin can be attached to FIAT currencies or exchange-traded commodities (such as gold, silver, etc.).

Tether (USDT) is an example of a stablecoin. It is a blockchain-based asset which can be exchanged for 1 USD.

What is FIAT money?

FIAT money is a currency that is not based on material goods (such as gold). The value of fiat money usually comes from political regulations. It has value maintained by governments or because parties agreed on its exchange value.

Fiat money originally appeared in China in the 11th century and started to dominate in the 20th century. After Richard Nixon decoupled US Dollar from gold in 1971, fiat currencies started to be used globally.

Unlike cryptocurrencies, FIAT money is controlled by financial institutions and may greatly lose its value due to hyperinflation.

...So what?

Do you remember this phrase on the beginning?

...for everyone, regardless of whether someone is a professional trader or a person who is just starting.

That is the point - for everyone.
We stand for the holistic approach. We stand for democratization.
We believe in a community which can co-create with us this platform and makes it bigger and more helpful every day.

It's all possible and its happening right now, but that's why the understanding of these concepts is so essential. What exactly is democratized exchange platform? How does this “democratization” perform?
Blockchain - again - comes in handy. We will explain it here soon!

If you are very impatient you can read more about CoinCasso on our websites, or simply dose knowledge by following us and waiting for next article - it's up to. This is what we call ‘independence’ ;)

Stay tuned!

Exchange platform - https://www.coincasso.com/

CCX Token website - https://coincasso.io/

PS: If you have any questions so far, do not hesitate to ask ;)



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