A Cryptocurrency, otherwise known as Cryptocash, is a virtual asset designed to function as a medium of swap where individual digital currency ownership details are held in a distributed ledger maintained in a digital format. There are several types of Cryptocash, each one holding differing characteristics that enable it to be used as payment mode for online merchants and other financial institutions. The most well-known Cryptocash is the Monero which hold no real value (unless it is highly valued), but serves as a bearer instrument. Other commonly used Cryptocash are Zcash and Peconus.
With the increasing popularity of Cryptocash, there is an urgent need to research the underlying infrastructure and its working principle in order to contribute to the efficient and effective operation of the distributed ledger technology. This is necessary for those who use Cryptocash as payment method. This research can help decide on the correct approach to upgrade or implement future versions of Cryptocash to ensure its long term benefit to society. A major problem facing the industry is that there seems to be a lack of standardized protocol that governs the use of the underlying asset in use across different participating Cryptocash users. The lack of standardization was a primary driving force behind the development of Blockstream, a consortium of companies working together to standardizedize the handling and transfer of funds within the industry.
While this may seem advantageous, some would still argue that Cryptocash isn’t truly decentralized. Others would say that since all the money is held in the same place, there’s no need to refer to the ledger as a decentralized system. This is true up to a point. By decentralizing the management of funds, a greater amount of control is given to the user community as well as allow for various forms of incentive based fundraising through which Cryptocash users have demonstrated a willingness to participate. This again emphasizes the need for standardization of the underlying asset.
Another way in which the underlying asset is decentralized is by its ability to manage itself. This system defines the Cryptocash supply as it is created, distributed and managed through the Internet. This provides a level of security for the users as well as a degree of freedom and flexibility not found with other systems of financial exchange such as stocks and bonds. Up until the recent birth of the new currency, the system defined the Cryptocash supply was fixed at one point and never fluctuated which, while not necessarily a problem, does limit certain uses.
Due to the nature of the Cryptocash supply, changes to the supply can be very problematic to the system. One of the biggest problems associated with the use of Cryptocash is that changes in the supply will often lead to large changes in the overall value of the cryptocash held by an individual or organization. An example of this problem is illustrated by the recent announcement that a large transaction was conducted involving a major digital currency, namely Dash.
As outlined by the creators of the Cryptocash, the reason behind the sudden change in supply was due to a problem with the number of people who had previously held the currency. As the value of the supply fluctuated, the value of each individual transaction increased. The creators of Cryptocash had to intervene by creating a solution through the process of “blockchain technology”. The use of this particular technology was designed to make the transactions between users within the decentralized currency network more efficient and secure.
There are two major uses of Cryptocash. The first is to act as a store of value. In this role, it functions much like a traditional currency because it is used to make purchases from other users of the system. The major difference lies in the fact that instead of issuing legal tender, it acts as a virtual stock or currency. Since it can be traded anonymously, it has no affect on the value of real currencies. The use of Cryptocash makes it attractive to buyers who would otherwise have been unable to purchase goods or services due to the restrictions placed by central banks on the release of their own currency.
The second major use of Cryptocash is as payment for real world goods and services. Unlike most forms of payment currently available, Cryptocash is completely free of charge and can be exchanged instantly anywhere in the world thanks to the distributed network of users that generate the value of the currency. A typical transaction might include the transfer of some money from one account to another or the buying of goods and services from retailers around the world. Many of the largest retailers around the world are now starting to offer services that are facilitated by Cryptocash.