Thursday, January 11, 2018

How to Ensure Crypto or Not by Seeing Cryptocurrency Character

How to Ensure Crypto or Not by Seeing Cryptocurrency Character - How to ensure crypto or not is not a difficult thing for those who already understand how cryptocurrency works. But quite different for people who do not really understand how and how cryptocurrency works.

Currently, there has been quite a lot of outstanding claims as a cryptocurrency. The term well known to the cryptocurrency community about this is the Shittcoin Era. In general, they only use it as a mere guise of cryptocurrency. Trying to take advantage of the opportunities behind the popular cryptocurrency that begins with Bitcoin. Most of these claims, using the pyramid scheme pattern, and pursuing the benefits of the new members. Like the pattern of pyramid schemes in general, always culminate collapse in the end.

How To Ensure Crypto Or Not By Seeing Cryptocurrency Character
Before we discuss how to ensure crypto or not, understanding bitcoin thoroughly is certainly the right thing to do. Because after all, new cryptocurrency that many emerging also cannot escape from bitcoin.


Meaning of Cryptocurrency

Simply put the term cryptocurrency is indeed appearing after the bitcoin is introduced. Satoshi Nakamoto at the time introduced Bitcoin was not considered a currency, but rather as a peer to peer based electronic payment system. About this, it can be seen in his paper on Bitcoin. When many people in the community are able to see the function that can be a medium of value transfer and also able to store value, people begin to tether predicate as a currency.

Although Satoshi Nakamoto never talked about as a verbal currency, the reality is that it is capable of functioning just like that. The characters to be considered as currency, relatively in favor of Bitcoin. On the other hand, many also assume that the predicate as a currency actually reduces the essence of Bitcoin thoroughly. Because it is considered to narrow the role of bitcoin is much broader than just as a currency.

Although the crypto project before bitcoin has been widely used, however, the bitcoin era crypto is a great breakthrough. Especially how an electronic payment system can run without having to rely on any party and authority. Since then the term "Cryptocurrency" in the bitcoin era and thereafter became increasingly popular.
 
Since then, many scientists, researchers, academics, and so on around the world are increasingly interested in studying, and researching further. Pre and cons go along the road along. But in the end, more and more people in the world are able to see the potential in it. There are so many benefits that can be used as lessons, used to be applied in many areas.

People can see all of these things because of the inherent transparency of viscous bitcoin. Studies and research on bitcoin and blockchain that turn back is also quite scientific. That's of course because the branch of cryptography in bitcoin and cryptocurrency plays a major role. This underlying science branch is the mouthpiece of the term cryptocurrency. Crypto is cryptography, and currency is currency. So of course, cryptocurrency is a cryptographic-based currency.


Decentralization So The Main Foundation

If we have understood that the era of bitcoin to be the current benchmark of cryptocurrency, then the character that cannot be separated is how decentralization can be achieved in the system. Cryptocurrency that comes after it, or what is commonly called altcoin, is similarly based on the same thing. Call it like Litecoin, Dogecoin, Ethereum, and many others, the same also put forward about decentralization.

It is not about avoiding authoritative authorities in the background. But on the security side of the layered if cryptocurrency can run completely decentralized. The assumption is of course, the authorities actually become a source of weakness, the entrance to all the problems, the object of fraud, many security holes and so forth.

All node nodes, are both central to each other's control. Being the front guard of the passage of consensus that has been agreed upon and implemented and obeyed together. With equal position and position with each other. This, of course, became the most solid fortress, able to overcome various problems that had previously become the most feared ghost in electronic payment systems.

Over time, there have been many modifications, many developers are trying to innovate, filling in various things about cryptocurrency. This is indeed relative to be made possible because the source code Bitcoin clearly and openly can be studied and can be further developed by anyone. The next initiative, is to attempt to create a quite different cryptocurrency, centralization. This initiative is more emerging from the financial services side, or also startup in various parts of the world. Banking consortiums in many countries come together to try to implement blockchain technology as a centralized system for the financial industry.

While innovations and ideas about this, not apart from other interests that try to take advantage of opportunities behind the increasing popularity of cryptocurrency. No other is the existence of parties with claims of using private blockchain and whatever term they use. In fact, the main purpose is to make a profit only, to lay people who do not understand much about cryptocurrency.


New Cryptocurrency Project Character

Transparency, decentralization, has been alluded to in the above explanation. These two things must be a benchmark. Its function is, of course, for the public to see, and provide an assessment of the feasibility, security, good future prospects or not, and know the typical cryptocurrency offered.

So, outline, by knowing the character of how the new project cryptocurrency, is the most appropriate to be able to see how to ensure crypto or not. Here are some basic things that have become habitual for the emergence of new cryptocurrency projects.


Announcement

Announcement is to introduce the cryptocurrency project to the audience. Cryptocurrency, of course, is more widely adopted by the crypto community base itself. Thus, the expected target is that many people in the crypto community will later adopt or use the new crypto. Usually the intended community to introduce this new project is at bitcointalk.org, or in reddit / cryptocurrency.

Furthermore, from this announcement, which then seems to be a forum for assessment, determining the new cryptocurrency project level will be crowded to be adopted or not. In this case, for beginner threads announcing the project, it is often seen from the rank level held on the forum.

For developers who are identical with scammers, usually open a new account on the forum. This, of course, has become a separate assessment for the crypto community for the offer of his new project. Moreover, it is for developers who disguise this new account, usually most of them are old scammers who create more projects with new accounts.

In general, at this introduction, the developer or project initiator will announce everything related to their cryptocurrency. At the introduction of this new project, any opinion, good and bad judgment of many people's comments can give us an idea of the new crypto. The more negative judgments that arise, then we can draw more conclusions to get away from it. Some of these things further are:

Specification

This crypto coin specification relates to many things, such as:


1.Total supply

Total supply is the total number of coin units that will be created in the long term overall in the crypto project. The total quantity of supply in any cryptocurrency project will be diverse. Total supply is also influential in terms of economic side that would be conceptualized on the project.

It should be an important note, that the outline of cryptocurrency in the Bitcoin era, tends to prefer to further limit the total amount of coin supply created. The goal is none other than to try to carry the ecosystem as in the ecosystem of gold commodities, and applied digitally in the branch of cryptography.

Gold, of course, is limited in nature. Gradually, the supply of gold will also be exhausted mined, then there will be no more gold that can be mined, because the gold resources have been exhausted. Likewise in cryptocurrency. This character is then translated into consensus which is subsequently moored in bitcoin core protocol, or other cryptocurrency. Thus the limited nature of this gold resource, translated through the total supply in its crypto protocol. If it has reached the total supply, then it means no more new units that can be created.

In comparison, the total supply of bitcoin is 21 million. Note, however, that the unit bitcoin unit consists of 8 digits. So of course, although with a total of 21 million with 8 digits unit it would have been considered more than enough. The restriction, in addition to trying to embed the character and nature of gold, is also an attempt to try to endure the unstoppable inflation rate at FIAT Money.

In a new cryptocurrency project, if judged to be a total supply of too much, it becomes reluctant to be adopted by crypto users in general. That is, the long-term economic side of the project is more vulnerable to inflation, to the decline in value or price of the crypto. The more coins that will be circulated, of course, will affect the price in the end. So precisely this total supply becomes an important reference also in providing an assessment of the crypto.

In this case, most scammers actually act the other way around, they use a relatively large total supply. If you encounter such a crypto project, then it should be avoided.


2.Algorithm

This algorithm is actually used as a means for achieving consensus within cryptocurrency. If inside bitcoin, use sha256, but altcoin in general, more diverse and use alternatives other than sha256. For Altcoin, usually using scrypt, some use sha512, scrypt-jane, or others. Each of those choices, also provides a different level of security. Thus, from this description, an important consideration to be known by the prospective adopters of the new crypto. If you do not find details about this in a new crypto project, then you should leave it.


3.New Blocked Time Block Created

Common temperament, altcoin also adopts this block. Cryptocurrency transactions, entered into each block. Each of these blocks, can coincidently demonstrate its historicity. So the validity will also be related to one block, with other blocks. Vulnerable time each new block, becomes a system of distribution patterns of new coin units are created. Generally, there is a vulnerable average time each new block is attempted to achieve. If inside bitcoin, vulnerable new block time is created for about 10 minutes. On each new altcoin project, it is generally different. Anything faster than that.

So in general, if the faster vulnerable when new blocks are created, then the new units of coins are created faster. And the distribution of coins also goes faster, and of course, leads to its implications for the total supply of coins in circulation. As mentioned above, the more coins in circulation, it will also affect supply and demand.

In cryptocurrency, each part will be related to many things. In this case, this new vulnerable block time will also be related also to the distribution pattern. At the same time, tipped will also be vulnerable when the total supply that can be known the range of time. In bitcoin, the total supply amount will end, can be expected to end in 2041. This can be known from the time range of this new block. In addition, because the block time span is related to the distribution pattern, it also relates to the amount of reward block for the miners. This distribution pattern, some use POW, and some prefer POS. More clearly about this you can read here: Proof Of Work As Incentives.


4.Block Reward

This block reward is used as a distribution pattern for new units. So, of course, will explain further whether the new project can be mined in general, or not. New terms appear, about the premined. That is, the entire total supply has been mined earlier by their developers. The new crypto project, which is premature, becomes its own assessment for the crypto community. Many people are more inclined to dislike this. Of course, the main reason is in the security side. New crypto projects that can be mined in general, will indirectly attract new adopters. This leads to an increasing number of node nodes that help maintain network validity in the system.


5.Halving Reward

Reflecting on the bitcoin, this reduction of reward block, has an impact to regulate the level of distribution of new units created. Generally, after a certain period of time that has been established in the consensus core protocol. If in bitcoin, this halving automatically happens if it has reached 210,000 blocks created. With the new block time range created is an average of 10 minutes. Then we can calculate the block time range that has reached 210.000 block that is more or less for 4 years. In this case, we can see that everything can be counted exactly. Mutually relate to one another. So, there is no magic or instant process.

In addition, the reduction of this reward block, also in anticipation of the growing growth of technology. Technological developments that tend to go straight ahead, would also have an impact on the mining ecosystem. For example, the increasing technological developments in mining devices. As we know, that the mining device ecosystem in bitcoin has undergone several phases. Everything is also an implication for the development of this technology. Apparently, the brilliant idea of Satoshi Nakamoto, reading this situation nicely. Considering also the reduction of this reward block due to consideration of the future, the future will also be facilitated by the more effective crypto mining device.


6.Block Explorer

Sufficient parameters allow viewing database transactions or more commonly known as Blockchain, can be seen from this block explorer. To distinguish between the true or the aboriginal crypto, can also be seen from here. We can easily distinguish how block explorer is in bitcoin, with the new crypto. If there are enough irregularities there, then it can be ascertained the new project is the result of copyrighted works of the scammer.

Bitcoin Block Explorer: https://blockexplorer.com/


7.Pool

This pool is where miners do mining together. This pool is similar to mining pool in bitcoin, emerging as an effort to facilitate small miners. In order for these small miners to participate in the mining ecosystem. The lack of detailed information about where their pool is, being an important indication of the new project is not crypto.


8.Source Code

Source Code, becomes the main benchmark to assess whether the new crypto project is really crypto or not. Usually, the publication of this source code will also be accompanied by a whitepaper that has been published. These two things, have been considered as complementary elements between the two. Generally, this source code is published in github.

From this source code, the public will openly view and assess the concept of the crypto project. Most new crypto projects that are completely different from the existing bitcoin and altcoin are quite rare. The more appear is the result of a slight modification of the source code that has been there before. If the source code is only from copy paste alone on the project that has been there before, then a negative assessment is also obtained. Especially if the copy and paste the source code does not include the original source. Because, Cloning github repository, of course still include the original source code.

9.Whitepaper

As explained about the source code above, this whitepaper explains in detail the concept of the new crypto project. If there is a discrepancy between the explanation of the concept in the whitepaper with the source code that has been published, then of course can be taken a negative conclusion on the project. So, we can draw a conclusion that allows us to know how to ensure crypto or not, from this whitepaper as well.


10.Roadmap

We can say, this roadmap is a series of development targets to be achieved on a new crypto project. Clear roadmap transparency, certainly provides its own assessment. Including also provides an overview of innovation developers will always evolve projects. If development goes stagnant, it also has implications for the ecosystem of the crypto project globally.


11.Developer

Furthermore, for how to ensure crypto or not, can be seen from who the developers behind the project. Clarity about the qualifications of developers working on the new crypto project, certainly also determines. We can judge whether the developer is qualified enough or not. If the project developer has been widely known in the world of crypto, it will add to the trust side of the project. Conversely, if the developer is unknown, then we should avoid it.


12.Market

Often, many people judge how to make sure crypto or not just from this side only. In fact, the important things that determine is like the things above. Market, can be said as the ultimate goal of the number of new crypto adopters. Generally, on a new crypto project, try to be included in the market capitalization of crypto (coinmarketcap). This goes hand in hand with the market that bridges the new crypto.

In this case, there are several developments that have penetrated crypto crypto market. But do not stop there until there. Because, we need to know whether the new crypto is also included in many existing large crypto market. In this case, many also found a market that made-up themselves by the developers of the new crypto project. If you encounter such a thing, then you can infer that you will regret later.

From the many explanations, now you can find out how to confirm crypto or not. And you can also begin to identify yourself on many existing crypto. Whether the image of the crypto is fulfilled or not. If not, then it should be avoided.