Digital cryptocurrency Amber

1.

1、 Different definitions:

1. virtual currency:

virtual currency refers to non real currency

digital currency:

digital currency is an alternative currency in the form of electronic currency. Both digital gold coin and cryptocurrency belong to digiccy

3. Cryptocurrency:

cryptocurrency is a kind of transaction medium that uses cryptography principles to ensure transaction security and control the creation of transaction units

4. Token (token):

a kind of article whose shape and size are similar to currency, but the scope of use is limited and has no currency effect, and its token is the homonym of token in English

Second, the characteristics are different:

1; It can also be said that virtual currency is personalized currency. In another way, it can also be called information currency

2. Digital currency:

is an unregulated and digital currency, which is usually issued and managed by developers and accepted and used by members of specific virtual communities

Cryptocurrency:

cryptocurrency is based on the decentralized consensus mechanism, which is opposite to the banking and financial system relying on the centralized regulatory system

4. Token (token):

usually needs to be exchanged for money, used in shops, playgrounds, mass transportation and other places, as a voucher to use services and exchange goods

extended data

at present, digital currency is more like an investment proct, because it lacks a strong guarantee agency to maintain its price stability, and its role as a value measure has not yet appeared, so it can not be used as a means of payment. As an investment proct, digital currency cannot develop without trading platform, operating company and investment company

digital currency is a double-edged sword. On the one hand, the blockchain technology it relies on has been decentralized and can be used in other fields except digital currency, which is one of the reasons why bitcoin is popular; On the other hand, if digital currency is widely used by the public as a kind of currency, it will have a huge impact on the effectiveness of monetary policy, financial infrastructure, financial market and financial stability

2. mining refers to the use of computer hardware to calculate the location of bitcoin and obtain the process, known as mining. Every other time point, bitcoin system will generate a random code on the system node. All computers in the Internet can search for this code. Whoever finds this code will generate a block, and then get a bitcoin. This process is called mining

computing this random code requires a lot of GPU operations, so the miners purchase a large number of graphics cards to get bitcoin more quickly and make profits
bitcoin has a halving effect, that is to say, every four years, the number of bitcoin will be halved. In this way, the computing power of bitcoin will increase, that is, the difficulty of mining will increase. Under normal circumstances, mining generally refers to the use of mining machine, that is, the computer to dig. These all refer to the single operation, or the operation of the whole mine. Cloud computing power mining refers to mining with multiple people. You can participate in mining as long as you invest a small part
the usual steps of bitcoin mining are "purchase miner - deploy miner - set miner - get profit", but the deployment of miner is affected by many factors, such as electricity price, site, temperature, noise, operation and maintenance, etc. These barriers need certain conditions and knowledge to eliminate, so it gives birth to a sub mole of mining instry - cloud computing power
cloud computing power is a remote mining mode. Users purchase cloud computing power contracts through the platform, rent computing power mining, and obtain revenue regularly. The advantage of cloud mining is that users don't need to deeply understand the mining principle and various software and hardware, or buy expensive mining machines, and they don't need 24-hour maintenance. As long as they place an order, they can participate in mining, which is similar to purchasing usufruct procts
for mine owners, renting and selling the right to use the computing power for a period of time to customers at a price slightly lower than the self operated mining income can quickly return cash, purchase the latest mining machinery in advance, expand the proction scale, and win the possibility of profit in the forward market. To some extent, it can also retain mining machinery at a low currency price, transfer risk, and hedge the single risk of self operated mining business< However, compared with direct participation in mining, cloud computing power also shows the following disadvantages:
even if the platform fully displays relevant information such as mines, mining machinery, cooperation and teams, it is still difficult for users to judge the quality of computing power, real-time operation status (such as power failure, site temporary inspection) or real revenue data behind the platform
the risk of speculation in bitcoin (short-term trading to earn spread) is higher than that of Tuen bitcoin (long-term bullish), but most Tuen bitcoin investors often lack judgment on short-term price changes and "get off early". Cloud computing power brings a small amount of bitcoin income to investors every day, which is also controlling investors' frequent operation in disguised form. Therefore, for many people who like bitcoin, there will be such a saying: "it's better to dig money than to fry money"
the market opportunity of cloud computing power is to provide indivials with a more neutral way of investment. The threshold is lower than that of self built mines, the risk is lower than that of short-term operation, and the cost is lower than the market price. It also allows mines to share the costs and risks and obtain more abundant cash flow
the main risk of cloud computing power lies in the authenticity and stability of computing power behind the contract. In our long-term contact with the mining instry, the high-frequency words we hear are "pit": reasons for power failure beyond common sense, various incidents ring the transportation of mining machinery, constant interference of viruses and extortion, fluctuation of futures and tardy spot, obstacles of cross-border trade, and team ghosts that can't be prevented. Therefore, real and stable computing power is scarce to a certain extent, Behind it is often years of experience. As an information intermediary, cloud computing power platform will become its core competitiveness in how to help users select high-quality cooperative mine cooperation, design friendly and attractive procts, formulate professional and transparent instry standards, establish disaster recovery plans to deal with various risks, and provide high-quality services throughout the whole process of investment
of course, mining is a long-term development instry, and cost recovery also needs a certain period, so whether you can make money mainly depends on whether you can stick to it.

3.

bitcoin (BTC)

issue date: 2009

market value: US $163 billion

advantage: as the first cryptocurrency issued, bitcoin is the world's largest and most popular blockchain network and the most experienced cryptocurrency that can resist hacker attacks

disadvantage: the increasing demand brings great pressure to bitcoin network, which makes the transaction cost high. The system can only process about seven transactions per second, but its power consumption is amazing. This is mainly e to its workload proof mechanism and consensus principle, which makes mining become a labor-intensive activity

eth

release date: 2015

market value: US $70 billion

advantage: its built-in programming language allows developers to write their own smart contract computer programs running on the blockchain. So far, most of the first token sales are based on Ethereum's smart contracts

Disadvantages: Ethereum also uses the consistency protocol of workload proof, so it is relatively slow and consumes a lot of power. Many early smart contracts are vulnerable to hacker attacks, and the development of smart contract security is still immature

XRP

issue time: 2012

market value: US $32 billion

advantage: XRP claims that its XRP cryptocurrency can become the "bridge currency" of major financial institutions, and can settle cross-border payments more quickly and at lower cost. Ruibo uses a new consistency protocol, which can achieve faster transactions, faster than t-coin and Ethereum

disadvantages: as a private company, Ruibo has important control over the system, some people think that XRP is not decentralized enough, which is in contrast to bitcoin, which anyone can mine

bitcoin cash (BCH)

issue time: 2017

market value: US $19 billion

advantage: this kind of currency is a "hard fork" of bitcoin, and its founder has adjusted compared with bitcoin, so that it can handle a larger transaction volume

disadvantage: critics say bitcoin cash is too centralized - a few miners create most of the money

lightcoin (LTC)

time of issue: 2011

market value: US $10 billion

advantage: lightcoin is a kind of "alternative currency" - almost a clone of bitcoin, but there are still several differences. Lightcoin processes transactions four times faster than bitcoin, and the mining process remains open to amateurs - very different from bitcoin, because bitcoin's professional miners use expensive hardware

disadvantages: although it is faster than bitcoin, lightcoin is still too slow and consumes a lot of power. These factors make it unable to become an ideal payment method, and there is another disadvantage: it is not very famous

recommend an article: brief introction of the top 100 currencies in the market value ranking of digital currency. This article summarizes the brief introction of the top 100 currencies in the market value ranking (according to the market value ranking of coinmarket cap on July 30, 2018), hoping to be helpful to friends who have just entered the currency circle

4. There are many mainstream currencies in the Chinese market, some of which are fake. In terms of mainstream rankings, bitcoin, ethereal coin, Leyte coin and e-dinarcoin are generally used, while the rest are self copied in China, which is unstable and unreliable.

5.

The top three are bitcoin, Ethereum and reborn. As shown in the figure below:

of course, the token market value of crowdfunding projects on coin Ying China platform is different, and is not included in the ranking

6. There is no perfect digital cryptocurrency, any kind of digital cryptocurrency is defective, including bitcoin. But at present, bitcoin is not the best digital cryptocurrency, but it is the most successful one. Other excellent digital cryptocurrencies include Wright coin, Ruitai coin, doggy coin, Ruibo coin, thousand gold card and so on.

7. Virtual currency includes digital cryptocurrency. Virtual currency includes game currency and digital cryptocurrency. Digital cryptocurrency only includes bitcoin, Leyte coin, Weimeng coin, doggy coin, Ruitai coin and Ruibo coin.

8. This should be distinguished according to the research and development direction of the white paper on each digital currency. There are many types of digital currencies circulating in the market, including those for the Internet of things, data, new sources and transaction protocols. For example, LRC is a decentralized trading agreement, which is the trend in the future.

9. I think the financial transaction here refers to the equity transaction in the primary market, that is, IPO. As a shareholder, you own shares, so this part of the money is still yours in theory, but the company can use this part of the money. Borrowing means that you give the money to the company. This part of the money is not yours, because you are not a shareholder. But the loan contract gives you another right, that is, to recover the principal and interest at a specified time.