open software program – Pivotal Performance Processes

It is now virtually impossible for humans to decipher blockchain. Bitcoins blockchain has proved impossible to hack, even with the aid of computers.

The technology of blockchain CANNOT be understated. This is possibly the biggest leap in technology since the creation of the internet.

Blockchain is now being engineered by a multitude of industries, including hospitals, banking, messaging apps and voting technologies.

Blockchain was originally developed by humans (we think) using open software called blockchain.

How do new coins come into existence?

New coin production is controlled by a process called mining, an intensive process where computers (mining nodes) compete against each other to secure the network by solving mathematical equations, collecting bitcoins as a reward if they are the first to create a new valid block, which is then broadcasted to the rest of the network and added to the blockchain.

1. To mine cryptocurrency you need to download the free open source software.
2. You also need to create a “digital wallet” (also considered a node), so you can receive payment for crypto you have created.
3. Originally you could use the hardware of your PC to mine, but as the process became more intensive, now you must have specialized mining software to handle the power, these cost about $1,500 and up.
4. The power / electricity needed for one of these hardware devices is enormous… enough to power 285,833 US homes as of 2015.

How does crypto compare to our current money system?

Currently we use a Fiat System. Ever since the US left the gold standard, public confidence in the fiat system has dwindled.

Fiat is currency issued by a government, but which is not backed by a physical commodity. Fiat suffers from inflation, when a government decided to “print” more of a Fiat currency, the value of everyone’s money goes down as a result. This is the exact opposite of what Cryptocurrencies aimed to solve.

How Cryptocurrency exchanges work:

The fiat system. There is nothing (no gold, no silver) backing the generation of the code.

Once you have created an account, you will have to link it with either a debit/credit card, or a bank account.

Afterwards, deposit how much BTC you’d like to exchange from your address, choose the currency of choice, and click on exchange. The process takes anywhere from a few minutes to a couple of days, depending on the exchange that you have picked and your bank/card provider.

Paying Your Taxes

It should be noted that in most countries, when you actually withdraw your cryptocurrency to Fiat, you will be creating a “taxable event” so you should be prepared to pay the tax owed under your local laws. Many countries differ on how they handle this, some are completely tax free, others use the Capital Gains model. The amount of time you have held the currency may also matter, making the difference between short-term and long-term Capital Gains.

As of 2013, law firms and tax return services began to include bitcoin tax preparation, and accounting software.

Trading exchanges are beginning to include platforms for trading cryptocurrencies just like they include trading for penny stocks; and meetup groups and investors services are beginning to open conversations about the trading of cryptocurrencies.

Tradestation Link: https://www.tradestation.com/university/video/the-real-breakdown-on-cryptocurrency-trading/

Can I pay for my lunch with crypto?

According to bitcoin.com, Overstock.com, Target, Subway, Amazon, Victoria’s Secret, and many others now accept the cryptocurrency and more companies are expecting to move in that direction.

So, though you may not be paying for your lunch today with cryptocurrency, it does seem as if there is a good chance that you will be tomorrow.

Article researched and copy written by Laughing Fox Designs, providing results driven website development and social media actions to start-ups, small businesses and mid-size companies. ©2018 All Rights Reserved

“Cryptocurrencies” or “Digital Currencies”are the newest currency built using an “open software” program called “blockchain”. “Altcoin” is an abbreviation for: alternative coin and is used to describe any cryptocurrency other than bitcoin.

Open software means the copyright holder provides the rights to study, change, and distribute the software to anyone for any purpose, allowing the software to be developed in a collaborative public manner.

The original developer of blockchain, Satoshi Nakamoto, is apparently a pseudonym, leaving the identity of the creator or creators unknown.

Whoever Satoshi Nakamoto is, this entity or person, “holds roughly 1 million bitcoin, worth approximately $18.6 billion based on recent prices. To add further to the mystery, it seems a minimal amount, if any, of this bitcoin has been moved/spent.”

The reason for the creation of Bitcoin was the desire to create a monetary payment system that does not rely on third parties (like banks or governments) to process electronic payments. Instead it relies on the consensus of the nodes on the network.

“A node is any physical device within a network of other devices that’s able to send, receive, and/or forward information. The computer is the most the common node and is often called the computer node or internet node. Modems, switches, hubs, bridges, servers, and printers and digital wallets are also nodes.”

Features and purposes of different coins vary.

For example, Bitcoin isn’t fully anonymous. The ledger can be viewed by anyone and the flow of funds can be traced to and from different Bitcoin addresses, although there is no private information linking you to your Bitcoin address. Other coins have been developed to provide full anonymity.

For a full list of 40+ cryptocurrencies to date: https://en.wikipedia.org/wiki/List_of_cryptocurrencies

Cryptocurrency is encrypted (hence crypto) blockchain. A block is a record of new transactions. Once each block/transaction is complete it’s added to the chain, creating a chain of blocks called: a blockchain.

There are two locks/ keys on each segment/block of blockchain.

Keys / Locks

With blockchain, what you have is a private key known only to you (basically just a super long password) to its address on the blockchain.
Each account also has a public key, which lets other people send cryptocurrency to your account. With this key you can withdraw currency to spend, but if you lose the key there’s no way to get your money back.

Information on the blockchain is also publicly available. It’s decentralized, meaning it doesn’t rely on a single computer or server to function.Transactions are instantly visible to everyone.

In this way, blockchain is compared to a coded ledger that information about each and every transaction is saved, visible and trackable (personal info will be in code no one else can interpret).

As you can image… the more a bitcoin is passed around, the blockchain grows longer and longer, as no part of the code is ever deleted.

Comments:

Hi there ,
I was reading your page here:
pivotalperformanceprocesses.com/blockchain-cryptocurrency-bitcoin-about/
and what you wrote about Bitcoin got me curious.
I went online to do some more research, and among the vast ocean of
“bitcoin guides for beginners” and “bitcoin definitions” I found one
that stood out and made things very clear.
I think it’s quite complete and easy to understand, even for “dummies”
like me (it explains lots of technical words).
I just wanted to suggest this guide as an addition to your page (They
say at the end that anyone can use the images they created, and I
think they would be a good fit on your page):
www.vpnmentor.com/blog/ultimate-guide-bitcoin/
I hope my contribution helps,
Jane

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Tag: open software program

Cryptocurrency and Blockchain – Part 2 of 5 Weekly Series