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Electronic currencies .. types and characteristics and way of operation

2018-02-08 08:39 pm | Resource: Crypto Section | No Views : 327

Electronic currencies .. types and characteristics and way of operation We will talk to you today about digital, electronic or virtual currency, call it whatever you want, but try to get to know the currencies that have become the concern of major governments in the world, and they are becoming the concern of many investors around the world.

What are electronic currencies?

Electronic currency is a type of currency available, but it is available in digital form only and has no physical presence. It is not like banknotes or coins, but it has similarities to physical currencies, but allows instantaneous transfers and unlimited transfer of ownership.
These currencies can be purchased by Matrade when you get them, you can buy goods and services, but can also be limited to specific communities such as for use within an online game or social network.
A virtual currency is an electronic balance that is electronically recorded on a card with a stored value or other device. There are also network funds that allow the transfer of value on computer networks and electronic money. It is also a claim on a private bank or other financial institution such as bank deposits.
This means that any intangible currency that an individual can not feel is an electronic currency. This means that the money in the credit cards and the money that is sent and received through electronic banks is considered an electronic currency system, but if it is touched and felt, It is common.
The Cryptocurrency is divided into two sections, the second is the currency, while the first is Crypto, which is the abbreviation of cryptography.

History of digital currencies

digital currencies
Origins of digital coins dating back to 1990 century IT bubble was one of the first such e-gold products founded in 1996 and backed by gold.
The recently launched digital currency service is the Liberty Reserve website, which was founded in 2006; it allows users to convert a dollar or euro into a digital currency between the dollar and the euro on the same site, and allows them to freely exchange with each other at a 1% fee.
Both services are centralized, but the US government shut them down after hearing about them as money laundering. Currencies Q (virtual money) or QQ coins were used as a commodity-based digital currency on the Tencent QQ messaging platform and appeared in early 2005. Q coins were very effective in China and were said to have had a destabilizing effect on Chinese yuan currency because of speculation. The latest interest in the encrypted currency has paid renewed interest in digital currency with PeteCwin, and was introduced in 2009 to become the most widely used and widely accepted digital currency.

How currencies work

As mentioned in the previous paragraphs, dear reader, the electronic currency is decentralized, meaning that no government or institution can control the production of more of them, but it can be controlled by a technology called the blockchain.

The Blockchain

Was defined in Blockchain Revolution by Don Tabescot and his brother as a non-manipulative electronic book of economic transactions that can be programmed not only to record financial transactions, but also for anything of value.
In the sense that every economic or financial transaction occurs on the system is recorded and encrypted in a block, and linked to the other blocks to form a series of blocks.

Advantages of electronic currencies

1 - super speed, where the transfer of what you want in less than a few seconds, unlike the traditional way of banks, which takes up to a long period of days.
2. The cost is very low, as the cost of money transfers is almost free or negligible.
3 - Protection and transparency, as every economic or financial operation saved in a mass and distributed to millions of computers around the world, making the process of penetration is impossible in practice, and the financial process is done before the world, making attempts to manipulate them impossible.
4 - decentralized any non-affiliated to any central bank.

The most popular currency types

The most popular currency types
Our dear reader will now write some simple information about the most popular types of e-currencies, and we will talk about each currency in detail in separate lessons.

Bitcoin

One of the world's most popular e-currencies, Bitcoin appeared in 2009 by Satoshi Nakamoto, as the currency is the beginning of the emergence of electronic currencies, and advised all investors to trade against other currencies, and is the highest in terms of market value.

Litecoin

In 2011, Charlie Lee, a former engineer at Google, invented a coin called "litecoin" LTC, which appeared as an alternative to Bitcoin, but could not move the Pitcuin from its place and no other coin could do it.

Ripple

Emerged in 2013 and was ranked third in the world of digital currencies in terms of liquidity, Ripple is different from the currency of the Bitcoin, the second wants to replace the traditional banking system, the former does not want to cancel it, but wants to support.

Dash

Appeared in January 2014, where Ivan Doffield produced Dash, a digital currency that is considered a more secret version of the composition.

Ethereum

In 2015, Russian programmer Vitalik Butryn invented the second and best digital currency ever, the currency of Ethereum, the virtual currency that is characterized by currency and decentralized platform at the same time, is a digital currency concept of its status and essence, very important.
Ethereum threatens the function of government, as it allows the creation of intelligent contracts in a way that simulates conventional contracts, ensures that all clauses of the contract are met and ensures that none of the terms of the contract is violated, which is precisely the role of power in real life.

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