Welcome to the world of electronic currencies !!!

Here, we try to provide the right information for the audience who are not familiar with Blockchain's money.

What are digital money?

The irrevocable need of businesses is the financial document. You pay for a product that you buy or sell or receive from a buyer.

In traditional businesses, this is done using banknotes, check and bank transfer, bank cards, and so on.

Common traditional money and currency, such as the dollar, the euro, the Swiss franc, are produced and managed by governments and central banks of different countries.

In fact, there is a central controlling entity that supports the money and monitors its transfer.

Banks and financial institutions provide tools to make financial transactions more accessible and central banks monitor their performance.

You keep your property in your bank account, wallet, or safe box.

 

What problems do these methods have?

Transfers are carried out under the supervision of a central authority. And sometimes it takes several days to transfer funds.Usually, the transfer fee is high.

Now in the digital world, a fundamental change has been given.

The idea is whether a transfer of funds between the two sides of a transaction can be carried out without the supervision of a central entity? Is it possible to transfer funds in a short time? And is there a way to reduce the cost of transportation?

The answer is yes, it's possible with CryptoCurrency.

 

now what is cryptocurrency?

Many people are familiar with Bitcoin. A currency that quickly multiplied its value and made a lot of noise. Bitcoin is not the first currency to be ciphered.

Bitcoin succeeded in introducing a non-centralized distributed management method to provide financial transfers that are entirely independent of governments and currencies.

After Bitcoin, there were other cryptographic currencies that each had their ideas and made improvements.

 

How does cryptography work?

If you buy a dealer in a remote country and want to quickly pay for it while making sure that the confirmation reference is transferable, it's an excellent choice to use cryptographic currencies.

 

You want him from the buyer's exclusive address:

 

You will receive the seller's address or QR and transfer the amount to the recipient using your wallet

 

Only after a few minutes, the receiver will have the money in his wallet.

 

 

 

 

where do we make sure the transfer is done?

 

Who will oversee the balance of the accounts after each transfer.

All of the network components of a cryptographic currency can be monitored for financial transactions and have a precise list of payments and receipts.

 

Does this not contradict privacy? How can everyone know about inventory accounts?

To overcome this concern, we need to know a bit more about this network.

Suppose I have 100 counos coins in my wallet. I want to make a purchase that the seller also accepts the counos coin.

I accept the seller's address on the transaction type agreed upon. If I want to send 30 counos coins to the seller for this purchase, a transaction will be registered in this form.

Customer (Address : XXXXXXX) First balance 100 CSC

Customer (Address : XXXXXXX) Purchase cost -30 CSC ( debit)

Seller ( Address: XYYYYYY) Purchase cost +30 CSC ( credit)

These hypothetical and, of course, simplified financial records create the customer's wallet. And sends it to the network.

On the network, there are some servers that they call Miner. Miners generate some transactions, based on highly sophisticated cryptographic algorithms, from this information and previous block information, creating a new block.

There are many controls to create a block.

Like the transaction is added to a new block that does not exist in any of the previous blocks (preventing a repeat of a transaction)

The sender has the amount of the transaction

 

After a block is created by a miner, it is sent to the network. And after the transfer, the funds will be finalized.

In this case, the entire history of financial transactions is available on the network. But what is kept is the receiver and sender's addresses, and the amount of the sending and explaining.

In this case, although everyone knows how much an address is available and what transactions they have done, there is no way that anyone can identify who owns a wallet address in a cipher currency. Only the owner knows exactly what his speech is.

Miners are rewarded for carrying out the operation, which monitors all transactions performed by creating a reliable and consistent blocking chain of financial transactions.

This bonus can be spent on the miner when at least 100 blocks are created after the generated block in the network.

Because the number of miners is high, the competition is for an upper block. This, of course, helps to increase network security. In later texts, we will discuss more the method of mine, how to allocate rewards and how it will be spent.

Counos