How to determine a real cryptocurrency: the rules known to all lovers of Bitcoin

Kriptonyte in its history gave rise to several thousands of cryptocurrencies. Yet none of them could surpass the popularity and the market capitalization of Bitcoin, but the creators of different projects in the field of blockchain still promise investors only “the best”. But how do you choose a good coin? Response in a user voiced a known fan of the blockchain and the Bitcoin industry legend.

On his YouTube channel Andreas Antonopoulos published a video in which dismantled the five traits of “standing” cryptocurrency. So he basically gave a tip to budding industry of cryptocurrencies, where there is a great temptation to buy the most reliable coin solely based on its vigorous growth in the past. To do so, of course, not worth it.


We checked the actual data. According to the service CoinMarketCap, today there are 5667 cryptocurrency. Accordingly, the choice is more than wide.

Количество криптовалют

The number of cryptocurrency

Here are five properties that are said Andreas. Recall them next time you evaluate a new cryptocurrency project that seems very promising.

The contents

Decentralization

Let’s start with the theory. The idea of “confrontation” traditional financial system Bitcoin is embodied through decentralization. Cryptocurrency is not controlled by any single body, it is not censored, and can be quickly transferred anywhere in the world.

That is, there is no equivalent of the Bank that would approve or reject certain translations based on the information about the author transaction. Network cryptocurrencies are all equal — and this is really important.

According to Andreas, this “standard” must comply with Aldon you want to choose for investment. That is, it should be available to absolutely every person — and with a very extensive network. Unfortunately, now on the market such projects can be counted on the fingers.

No restrictions

This criterion comes from previous good cryptocurrency available anywhere in the world. That is, it is possible to make a transaction with the minimum fee any person with an Internet connection. If the situation is different — because of the regulation on the administration of the project or something else- it is better not to contact.

Биткоин блокчейн криптовалюта

Censorship is killing cryptocurrency

By the way, to work with Bitcoin do not necessarily have access even to the Internet. Read about how you can transfer BTC on the radio.

Neutrality

Be considered neutral by nature may be a system that not discriminary transactions based on sender or recipient, and the value and purpose of the translation. Any system that will run the transaction without taking into account information about the source is classified as a cryptocurrency.

Биткоин блокчейн криптовалюта

Bitcoin is the most neutral cryptocurrency on the market

More in line with this criterion correspond to anonymous cryptocurrencies, for example, Monero. Recall that the level of privacy Monero is so high that the participants of the transaction XMR hard to track even for experts Europol. However, quite often it hurts the image of cryptocurrencies, as this property is used by the fraudsters and criminals to anonymously transfer money.

Immutability

Antonopoulos leads BTC as a vivid example of the project with the property immutability. The data in the Bitcoin blockchain after a few network confirmations cannot be changed, to forge or to remove. They remain in the blockchain forever.

Due to this property, the blockchain is an excellent way to preserve and confirm the uniqueness of art objects, clothing , or even virtual items.

Publicity

Antonopoulos is committed to transparency in the blockchain. That is, its data should be open to everyone. They still cannot be changed, but the transparency provides the necessary credibility to the project.

According to this criterion blackany are divided into public and private. An example of the first — Bitcoin in the Ethereum or any other altcon where you can see the transaction in blocks. An example of the second is a private cryptocurrency developed by companies or other organizations.


View information about transactions in the so-called blockchain Explorer. For example, on this site you can explore the data about payments in Bitcoin. And this link is available Explorer network Ethereum.

It looks like the information about the transaction.

информация транзакция

Transactions by a hacker who hacked into the stock exchange Upbit

Here is a video of Andreas. If you speak English and you can take it by ear, we recommend you to see the video.



According to Antonopoulos, the investment project may not be part of the above criteria and still be interesting for investment. However, a vivid supporter of Bitcoin inclined to think that the "real" cryptocurrency still needs to be largely similar to BTC. So if you estimate a new project, should first of all focus and compare it with Bitcoin.

From myself I will add that it is also important to the security of a network specific cryptocurrency. Ideally, it should not to be afraid of 51% attack, that is, to be “too expensive” for break-in and possible problems. The cost of an hour of this attack is indicated on the platform Crypto51.

Here is the actual data on the cost of the attack 51 percent in networks of different cryptocurrencies. We recommend you to take into account this point.

атака 51 процента цена

The cost of the attack 51%

What are your selection criteria cryptocurrency? Share them with our subscribers and check in Yandex Zen.

SUBSCRIBE TO OUR CHANNEL IN THE TELEGRAM. MASS ADOPTION IS AROUND THE CORNER!

Leave a Reply

Your email address will not be published. Required fields are marked *