THE CRYPTOCURRENCY CHARACTERISTICS
The most important characteristics of the cryptocurrencies are the following:
THE CRYPTOCURRENCY CHARACTERISTICS
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- They are a “peer-to-peer” decentralized electronic money form that is based on the principles of “cryptography” to secure the network and verify transactions.
- Most cryptocurrencies use a “Distributed Database” as the backbone of their system, the so-called “Blockchain”.
- They can be used with full anonymity, ie without the submission of personal data. There is complete anonymity in transactions and often without the ability to detect personal information.
- They can be used for small or large transactions at very little or no cost.
- They can be used in any space and time.
- There is a limitation and disclosure of the cash reserve.
- Anyone could contribute to the creation of cryptocurrencies.
THE CRYPTOCURRENCY CHARACTERISTICS
THE CRYPTOCURRENCY CHARACTERISTICS
THE CRYPTOCURRENCY CHARACTERISTICS
DIFFERENCES BETWEEN TRADITIONAL CURRENCY COINS AND CRYPTCURRENCIES
THE CRYPTOCURRENCY CHARACTERISTICS
Coins and Cryptocoins
| Traditional Coins |
Cryptocoins |
| New coins can created only by specialized agencies – Central banks |
Anyone can create new currency units – there is no central authority |
| Decentralized system | |
| Trust is secured legally through third parties | Confidence is guaranteed only Technologically – no third parties or organizations are required organizations |
| Private transfers | Public transfers |
| Unlimited supply | Limited supply |
| Participants do not have the same roles | All participants have the same role – peers |
Source: Τζαγκαράκης και Δασκάλου (2015)