What is Bitcoin
Bitcoin is an "online currency" (different from the form of physical currency) and is funded by means of network transmission. It is a decentralized payment network. In the past few years, Bitcoin has gradually increased its position among consumers, governments and financial traders.
Who can control Bitcoin?
Bitcoin cash flow and transactions are conducted on the web and are not managed by a central agency. People perform bitcoin operations and security management through computers, and the newly mined bitcoin is a reward. Therefore, no individual or institution can control the circulation or circulation of Bitcoin.
Since Bitcoin does not require an entity, Bitcoin usually does not exist in any separate form. Only in exceptional cases, very few companies make "entity" bitcoins. In addition, Bitcoin exists in the public network database, and the traditional currency will complete the transaction through a real-time updated account. This public network database is called a system of equations.
History of Bitcoin
Bitcoin is often considered an "electronic currency" that more accurately describes the mathematical theory on which it is based than the traditional economic theory. The concept of e-money was first proposed in 1998 by Wei Dai in the e-mail newsletter of the online forum Cypherpunks. He believes that applications using cryptography will enable social change and increase the level of privacy in the information age. However, Bitcoin has gone through a decade of conception and implementation. The paper named Ben Satoshi describes the Bitcoin model by publishing a paper on another cryptography website.
Nakamoto first proposed the concept and norms of Bitcoin, but left the project in 2010 and used the pseudonym (the present is still unknown to individuals or groups). Nakamoto has been using a pseudonym, but has created an eye-catching bitcoin, which has led to a lot of discussion about why Nakamoto is a person. There are also many questions in the market regarding the legality and compliance of Bitcoin. Bitcoin supporters have made a tough rejection of these questioning voices. It is estimated that Yamamoto should hold one million bitcoins, and the value held in accordance with the 2014 price is as high as several billion.
Even for investors with different trading purposes, bitcoin investment is very attractive.
For the growing bitcoin consumer group, Bitcoin is a commodity currency that is not controlled by any central bank and can be freely cross-borderly consumed and has a very limited degree of regulation and control.
For economic enthusiasts and technology controllers, bitcoin is an important symbol of the revolutionary advancement of the digital age.
For Bitcoin, for Bitcoin, it is an investment area of Tranlin: Bitcoin is volatile and the trend is different from the general currency.
For many people, the biggest feature of Bitcoin is its low cost, high speed and completely free form of trading. Bitcoin is a completely global currency and is limited only by the laws and regulations of very few central banks and other banking institutions.
Therefore, it is only necessary to transfer the Bitcoin to the home for up to ten minutes, and the only fee is the exchange fee used by the exchange, and it can be traded at any time, place and amount. Because of this, the global currency transfer through Bitcoin not only costs less than the general transfer method, but also has an excellent transfer rate. The general transfer method will incur costs, subject to a large number of laws and regulations and take several days.
Disadvantages of Bitcoin
Bitcoin can provide fast, low-cost transactions because it exists only on the network and is not hindered by central authorities or economies. However, such freedom also has its drawbacks. Bitcoin security is not perfect in many ways, and many people have experienced many infamous hacking attacks on exchanges that store large amounts of bitcoin. As a fledgling new currency, it has not been fully accepted by many large buyers. For consumers interested in trying to network money, this creates a substantial obstacle: the trading options available to Bitcoin users are very limited.
Why invest in Bitcoin?
The key reason for Bitcoin's fascination is the price volatility that existed in its early stages of development. At the end of 2013, investors eagerly used Bitcoin as an investment vehicle. Bitcoin has been rapidly increasing in value. In November 2013, each bitcoin was worth $200, and after a month it soared to more than $1000 per bitcoin.
Since then, Bitcoin prices have continued to fluctuate significantly. The key reasons are:
The total amount of bitcoin in circulation is still very rare compared to other currencies. Based on the characteristics of Bitcoin, a certain amount of bitcoin can be mined every ten minutes until the circulation reaches 21 million bitcoins. This value will be reached in 2140, so the volatility of Bitcoin in its early years is still a key feature.
What is Ether?
Ether, the currency is ETH. In the underlying currency of Ethereum, this blockchain platform, Ethereum can be said to be an important element to promote the operation of the entire Ethereum, including mining, calculation of transaction fees, etc. Waiting for work requires Ethereum, so talking about Ethereum is equal to knowing what Ethereum is.
What is Ethereum?
Vitalik Buterin, founder of Ethereum, said that Ethereum is a platform for Decentralised mining network and software development platform rolled into one. It is not only a mineable chain system with bitcoin-like, but also can develop itself on this system. Application.
Therefore, Ethereum is also a blockchain public chain platform, just like Bitcoin, but the biggest feature of Ethereum is that it has a "smart contract" and can write "Dapp" (Decentralised Application) outside the blockchain. This is the two most important concepts of Ethereum. Let's talk about what Dapp and smart contracts are.
Ethernet's Dapp and Smart Contract Analysis
Dapp's name is a decentralized application. For example, all the apps on the phone today or the games on the computer, etc., will have a server on the side of the software company. When the background supports the entire program, any operations you make on the game will be processed on this server and your game records will be stored on it.
Then why is Dapp born?
If there is a small game today, you care about his operating program very much. For example, if you have a gambling game with a dice, the above assets are purchased by the user in real money, and the profit earned on it can indeed be Switching to real money, like this type of application, would you really care if the game is fair? If all the programs are running on the server of the software company, how do I know if they have secretly adjusted the chances of the numbers in the game?
So if you write this dice game in the form of Dapp today, it is a program that can open the game to everyone, let everyone prove that the game rules in this program are very fair, then you can put the game on the blockchain, so that No one can secretly change any item in the program, even the publisher itself does not work, so that everyone can rest assured to participate in this completely decentralized game.
After understanding what Dapp is, smart contracts are related to Dapp. Smart contracts can be said to be a bridge between Dapp and the blockchain network. It is a technique for putting program logic on the blockchain. For example, Writing a dice gambling game outside the blockchain, the smart contract can help turn the external Dapp's operation instructions into a blockchain language, allowing the blockchain to understand what Dapp wants to do, such as someone gambling. If you make money on the game, then Dapp will send the message to Ethereum which person may be who and how much money is earned. Then the smart contract on Ethereum will automatically implement the change in the balance of the electronic account, that is, The money in his account increases, so Dapp can be said to be a program that runs externally and a smart contract is a program that runs on a blockchain network.
In Ethereum, the smart language used in the Ethereum's original new language, Solidity, will be followed by a series of articles to explore Ethereum in depth, including the writing of smart contracts and the implementation of Dapp. Course.
What is the role of Ether in Ethereum?
As mentioned in the previous chapter, smart contracts are programs that run on a blockchain network. Running a program on a blockchain network consumes computing resources, so you want to run smart contracts on the blockchain. It is reasonable to pay some price for these computing resources. At this time, Ethereum can be used to help out. Today, someone writes a smart contract to be put on the blockchain network, and can use the currency to pay the computing fee. In addition, to send transactions in the Ethereum blockchain and transaction fees as the Bitcoin blockchain, the transaction fee is also used to pay for the Taiyuan, as well as the miners in the Ethereum. The reward for the mine will also be Ethereum (the current reward for digging a block is 2 Ethereum), so in simple terms, Ethereum and Bitcoin are the same currency, and also promote a public blockchain network. The currency, but the Ethereum is more responsible for the payment of smart contracts.
What is Dash?
Dash is a virtual currency that has been in use since 2014. Originally it was named "Darkcoin", but in 2015 it was renamed the current Dash.
In the market value ranking, it ranks 10th and has a high popularity.
Dash is a virtual currency that can be used for safe and fast payment like cash. Dash has the following characteristics.
・Provide instant billing
・There is a master node supporting Dash
Dash is characterized by highly anonymous, very fast transaction speeds. While protecting privacy, you can still send and settle money quickly. Implementing these functions is due to the existence of a primary node.
Let's take a closer look at the characteristics of Dash.
Main Features of Dash
Dash is characterized by a high degree of anonymity. While there are other virtual currencies with high anonymity, such as Monero, Dash implements anonymity in its own unique way. When Dash is remitted to another user, the "management node" first receives the currency instead of the direct transfer. After the management node receives multiple transactions, it reassembles the transaction shuffle order and sends them to the recipient.
By doing so, others will not know "who transferred the money to whom."
For example, User A transfers 10 DASHs to User B.
under these circumstances,
・User A has transferred 10 DASH
・User B received 10 DASHs
It’s something you can know, but
・Who is User A transferred to?
・From whom is User B received?
If there is no information, there is no trace.
This mechanism of mixing and shuffling multiple transactions is called "PrivateSend".
The Shield (XSH) that was introduced before is the ancestor of this method.
Provide Instant Billing
In addition to high anonymity, another feature of Dash is its support for "instant accounting." Dash trades very fast, and a transaction ends in less than a second. Considering that Bitcoin takes 10 minutes to review a transaction, you can see how significantly Dash's trading speed has improved.
If the transaction is processed so fast, it is not impossible to use it as a substitute for “cash”. This mechanism for instant settlement is also known as "InstandSend."
There is a Master Node Supporting Dash
One thing that can't be ignored when talking about Dash is the existence of the "master node." First, what is a node? A node is a terminal (personal computer or smartphone) that is connected to a virtual currency network. Among the many nodes, a node with special permissions is called a "master node." To become the primary node, the following conditions must be met.
・Holding a thousand DASH currency
・24 hours to keep nodes active
In fact, Dash's "high anonymity" and "instant settlement" are all provided by the master node.
Anonymity is achieved through "PrivateSend", which disrupts and reorganizes multiple transactions. It is the master node that completes the major shuffle after collecting multiple transactions and currency. At the same time, "InstantSend" for instant settlement is perfectly implemented by specifying that only the master node can approve the transaction.
In addition, if you can become the main node, you can get 45% of the transaction fee as a reward, and also have the right to approve or oppose the development proposal. It can be said that the main node supports the Dash system and is also involved in operations and management.
Dash News and Future Potential
Japan trading platform CoinCheck stops trading Dash
Dash was listed on the Japanese virtual currency trading platform CoinCheck. However, in June 2018, CoinCheck announced the removal of Dash and stopped its trading.
At present, the permission of the Ministry of Finance of the government department is required to carry out the virtual currency trading business in Japan. CoinCheck is currently working on a license recovery business.
However, since highly anonymized virtual currency such as Dash is easily abused, it is considered a potential problem by the Japanese Finance Agency. If a highly anonymous virtual currency trading service is offered, it will be difficult to obtain permission from the Financial Services Agency, so CoinCheck decided to stop the Dash transaction.
In addition, virtual money with high anonymity similar to Dash, such as Monero (XMR) and Zcash (ZEC), has also been stopped trading.
Even in Hong Kong, no trading platform has the intention of introducing high-anonymity virtual currency.
America's virtual currency ATM can use Dash
In Asia, Dash transactions are decreasing, but in other countries, especially in Europe and the United States, there are more and more places where Dash can be used.
In July 2018, the US virtual currency ATM "CoinFlip" announced that it would add Dash to the usable currency.
There are still very few virtual currency ATMs in Hong Kong, but the number of ATMs around the world is increasing rapidly. CoinFlip has more than 175 in the United States alone.
If Dash becomes a currency that can be used in a virtual currency ATM, then it is foreseeable that Dash's trading volume will increase and the price will rise.
Due to its high degree of anonymity, Dash can also be used for money laundering like Monero and Zcash, and used by dark nets. Therefore, like Japan's CoinCheck, it is very likely that it will be strictly regulated in Hong Kong and even have the ability to stop trading.
However, Dash has always maintained a relatively high level in the market value ranking. Will the virtual currency successfully integrated into the market in Europe and the United States really ignore the Asian market? The bigger possibility is that it will ease the regulation and penetrate into the Asian market. Before Dash, there were a lot of virtual currency that first spread in Europe and America and then to Asia.
If you are considering a share of Pioneer's investment, we recommend that you start your position before the Hong Kong Stock Exchange begins to introduce Dash.
Dash is a virtual currency with high anonymity and instant billing features. Virtual money with high anonymity may be regulated, but virtual currency that can be used safely and quickly like cash is valuable, so I expect Dash's use and popularity to expand further.
Dash vending machines can actually be used, and the US virtual currency ATM has announced that Dash can be used, etc., and the use of Dash is slowly increasing. Of course, as the available space expands and the volume of transactions increases, we will see that the price of Dash will increase in the near future.