THE CRYPTOCURRENCY CHARACTERISTICS

The most important characteristics of the cryptocurrencies are the following:

THE CRYPTOCURRENCY CHARACTERISTICS

• • 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)