Tag: blockchain

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Cryptos Money

DeFi what is it?

DeFi is Envisioned as Decentralized Finance

DeFi or Decentralized Finance is an area in the Crypto World attracting huge attention these days.

This is an attempt to create another financial system that would take advantage of blockchain technology. They say that even though bitcoin was the first blockchain technology created by Satoshi Nakamoto it is to slow, and couldn’t handle what DeFi can do for finance. 

They say that the advantage of this type of decentralized smart contract is that since it doesn’t reside on a particular companies servers, it essentially cannot be hacked. And we all know how many times financial institutions have been hacked in the past.

So DeFi is being touted as the new way to protect enforceable agreements, a fancy word for contracts.

This DeFi concept is still in its infancy, so I wouldn’t expect to be using it any time too soon.

Blockchain as Digital money

You may only be thinking of tokens like bitcoin as digital money, but it’s a lot more than that.

What was developed to protect these digital coins, namely the blockchain technology is actually a distributive ledger that keeps track of an asset.

The key that makes bitcoin attractive, is the fact that it’s independent of the normal monetary systems. This way it remains secure, because a copy of each transaction is copied to every computer on the bitcoin network.

What this does is it ensures that no two transaction can differ. This works because if there’s a discrepancy between any of the copies on its block chain, the transaction will not go through.

Defi

This area of finance has been in need of improvement for some time now, and this is what DeFi is intended to accomplish. Using the same technology that Crypto currencies use DeFi or decentralised finance can benefit from this system as well.

Many in the financial services business are looking into using these smart contracts, which are automated enforceable agreements that don’t require intermediaries like a bank or lawyer. These smart contracts use online blockchain technology instead.

Essentially what DeFi does is to use blockchain technology to not only create agreements but to also ensure their security. There should be a reduction in the cost of doing business as this technology rolls out.

By now I am sure you are familiar with the concept of a blockchain or the distributive network.

Not just a Blockchain

When anyone thinks about blockchain, they immediately think of bitcoin. That’s because bitcoin runs on a blockchain and is most widely known for it. And because it’s currently also the premier digital asset.

It’s believed that a system using this blockchain technology, could in fact be a more secure way to conduct financial transactions.

Ethereum

Now the Ethereum token was one of the first to create and use these smart contracts.

One of the benefits of this blockchain technology is that it has many different uses. And DeFi or decentralized finance is just one of them. This seems to be the direction that contracts in the future will take.

And by the way, this article is not all-encompassing by no means, since there is so much more to this stuff. So I suggest the reader continue to research this concept before getting involved with it.

Categories
Cryptos

CRYPTO’S

Crypto Conspiracies

It wasn’t that long ago that no-one even knew to ask the question as to what Crypto’s were. And now so many are interested in knowing more about them.

Bitcoin was one of the first ones created. The bitcoin protocol as it is referred to, is thought to have been created by Satoshi Nakamoto a computer genius. All though that has not been totally proven to this day.

Many Crypto conspiracies are born every day, from, that they were invented to enslave mankind, to they will be the saviors of our old dilapidated money system.
The conspiracies run deep and wide. Let’s take a look at what they are before we get to deep in the conspiracies.

Distributive Leger’s

Crypto’s are the short name given to Distributive Leger’s. Sometimes called a block chain. It’s called a block chain because each transaction is carried in a block of computer information. It’s a distributive Leger, because computers around the world carry a copy of the Leger.

Each transaction must be updated each carry a copy of the transaction almost instantaneously.
This creates a Leger of all of the transactions, and all of the computers in that network must agree or contain the exact information in order for that transaction to be valid.

One of the first Crypto’s you’ve probably heard of is of course Bitcoin, I can remember so many people thinking that it was actually a real physical coin. But that’s not the case it’s just digits on computers.

BITCOIN IS MINED

The Miners what are they, and what do they do?
These minors aren’t people per say, they are special computers that have to solve complex math problems to create a new bit coin.

The minors get rewarded by getting to keep a certain amount of them for themselves to cover their expenses. 

The thing about bitcoin is that the protocol only allows for 16 million coins to ever be created. What will happen when all of them have been created then the numbers will become smaller, let’s say you may only get 1/100th of a bit coin or 1/1000th of a coin, you get the idea.

The New Money

Those in the Crypto’s World say that the problem with our current money is they can create to much of it, and thus have reduced its actual purchasing power. And they say that with every problem we tend to want to print our way out of it . And by doing this over creation of the currency, our money looses purchasing power.

The creators of Cryptos are very aware of this problem as this is what they want to prevent. For these reasons all Crypto’s tend to have a total limit on how many can be created. In this way they say that the value of their Crypto’s can actually rise in value.

There now are hundreds of Crypto’s created now and more on the way. They are finding uses for the distributive Leger’s every day. Crypto currency seems to be the way money is going in our near future.

Smart Contracts

The Ethereum coin was created to be used for Smart Contracts. What the purpose of this coin is to make sure that any contract that you create can’t be undone by anyone else.

How this works is that all crypto coins have what are called keys. There’s a private key, and a public key. And you must be in possession of both keys in order to create a transaction. 

This makes your documents very secure. When these get going they will help stop fraud.

New Coin

There’s is currently a new coin on the block chain and its called Theta. Theta it is said to be better than Ethereum, and that this coin will be used for things like movie streaming, and can be used in many of the same areas as Ethereum is used for. 

Those in the crypto community love to get involved with these new coins when they initially come out, while they are still cheap in price. Many of those that got involved with bitcoin when it first came out are millionaires today. 

To be continued…