Is it digital currency

1. digital currency is to replace the real currency to complete commodity transactions. Digital currency is more convenient, faster and more healthy than cash. It can not appreciate itself

2.

Digital currency is a kind of legal tender, which must be issued by the central bank. Both digital gold coin and cryptocurrency belong to digital currency, which is not a network virtual currency, because it is not limited to virtual space, but is often used for real goods and services transactions, such as bitcoin, Wright coin, bitstock, etc. at present, there are thousands of digital currencies issued around the world

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1. Impact on financial infrastructure

the decentralized mechanism of value exchange based on distributed ledger technology has changed the basic settings of gross and net settlement on which financial market infrastructure depends. The use of distributed ledgers also poses challenges to trading, clearing and settlement, as it promotes the disintermediation of traditional service providers in different markets and infrastructures. These changes may have potential impacts on market infrastructure other than retail payment systems, such as large payment systems, securities settlement systems or trading databases

If digital currency and distributed ledger based technology are widely used, it will bring challenges to the intermediary role of financial system participants, especially banks. As a financial intermediary, banks perform the ties of acting supervisors and supervise borrowers on behalf of depositors. Usually, banks also carry out liquidity and maturity conversion business to realize the financing from depositors to borrowers. If digital currency and distributed ledger are widely used, any subsequent disintermediation may have an impact on savings or credit evaluation mechanisms

3. Bitcoin, of course, is the hottest one. In addition to bitcoin, there are also:
1. Litecoin is similar to bitcoin, which is also an encrypted digital currency, and its price has risen sharply recently. It is a P2P open source digital currency, which can be regarded as a branch of bitcoin. However, although lightcoin is based on bitcoin protocol, it does not require very high computing power. It can also be mined using ordinary computers. Lightcoin's algorithm comes from the algorithm designed by Dr Colin Percival for tarsnap secure online backup service (backup for Linux and other open source operating systems)
2. Namecoin
namecoin is also based on bitcoin, which is another branch of open source. Namecoin is a distributed DNS protocol -- generally speaking, it can transform the website name (such as ifeng. Com) that can be understood by human into the address that can be understood by machine. As its own DNS, this kind of currency can operate outside the normal Internet, so it can break away from the control of ICANN
the monetary value and domain name of namecoin are stored in the user's blockchain records, limiting the total number to 21 million
3. Peercoin
peercoin is a peer-to-peer variant of bitcoin, which can improve mining efficiency and security, and improve safeguard measures to avoid group mining. Now, group mining has been considered as a potential defect of bitcoin. According to the statistics of emerging currencies by coinmarketcap.com, peercoin currently ranks fourth in the market value of digital currencies
4. Primecoin
primecoin is a cryptocurrency similar to bitcoin, but it uses a completely independent mining algorithm. Bitcoin uses the hashcash algorithm, while prime coin uses the long Cunningham chains to create the value of money - a sequence of prime numbers named after mathematician AJC Cunningham
in the process of bitcoin mining, as the amount of money goes on, the difficulty will increase sharply. But prime is different. Every time a primecoin is mined, the mining difficulty will increase slightly, and the process is much more stable< 5. Feathercoin

based on the design of litecoin, released in April 2013, can adjust the mining difficulty more frequently than litecoin. Feathercoin will be updated frequently, adding new features and improvements to eliminate malicious mining behavior

6. Novacoin

another P2P digital cryptocurrency. Novacoin is different from most other currencies in that it integrates a protection mechanism in the currency core, which can identify illegal mining activities

the total number of novacoin is limited to 2 billion, which is considerable. If necessary, the total can be adjusted upward

7, infinitech

published in June 2013. A by-proct of litecain. According to the mining situation and the total amount of money, infinite money can frequently adjust the mining difficulty ratio< Megacoin was only released in the fourth quarter of 2013, imitating bitcoin in the early stage. The total number of megacoin is limited to 42 million, which can be mined like other virtual currencies. Its biggest selling point is brand publicity, which other digital currencies lack< It was released in 2013 and is still in its infancy. In the security part of quarkcoin, nine independent loops are deployed and six different algorithms are used.

4. It's not necessary to say that this thing is deceitful. If it is issued by the state, there must be government and full-time personnel with certificates.

5.

Digital currency is an alternative currency in the form of electronic currency (which can be used for real goods and services transactions)

digital currency has the main characteristics of network packets. This kind of data packet is composed of data code and identification code. The data code is the content we need to transmit, while the identification code indicates where the data packet comes from and goes

based on the characteristics of digital currency, the direct benefit of digital currency to the central bank is not only to save the cost of note issuance, circulation and settlement, but also to enhance the central bank's ability to control funds

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money can adjust the total social demand and total supply by regulating the money supply, so as to achieve economic equilibrium. When the expansion of aggregate demand leads to the imbalance of supply and demand, the total demand can be restrained by controlling the amount of money; When the total demand is insufficient, we can increase the supply of money to increase the total social demand, so that the economy can continue to develop

At the same time, the increase of money supply is concive to the decrease of loan interest rate, recing investment cost, stimulating investment growth and proction expansion, thus increasing the total social supply; On the contrary, the decrease of money supply will promote the increase of loan interest rate and restrain the increase of total social supply