$SOL The main objectives of this work are mainly two:
On one hand, to know and analyze the basic principles of the functioning of the
cryptocurrencies, for this we will analyze the functioning along with the concepts
necessary to understand all the necessary processes from the most basic
basic to the most specific, we will also talk about and analyze the tools and
the technologies that are needed or can be used with their respective advantages and
disadvantages, going through the possible uses that could be given to some technologies
that until now are only used in the world of cryptocurrencies and doing
analysis of the most important cryptocurrencies today. It could be said that
we will seek to make a guide to understand the entire process and the
characteristics of cryptocurrencies in a simple and
In this section, we will discuss how the world of cryptocurrencies works.
cryptocurrencies their functioning going from the most basic to the most concrete.
The first thing we need to know is what a token is, units of value
similar to what traditional coins are, but unlike these, tokens
are virtual. These are created by organizations to give a capacity to
use them as a means of payment, granting rights or having a greater benefit compared to
other users who do not have the token of a certain organization. There are several types of tokens
in which you can see two differentiated groups, the fungible and the non-fungible:
Fungible Tokens (FT): This type of token is more related to the
economy and it could be said that they are the most similar to the normal money that everyone
we know, they can be exchanged for products. The particular thing is that in this case
can be divided and exchanged, for example, if I have 1 token I can divide it and have
0.5 tokens and sell the rest to someone who wants to buy. For this reason
Proof of Work (Proof of Work)
A requirement of the blockchain is that there are several users to verify the
transactions. The blockchain of a blockchain is the place where
records all user transactions in such a way that no one knows the
knowledge of who each user is and not knowing who they are without giving the
possibility of forgery, it is like a book in which all the
transactions. The only thing known is that there is a user who wants to send a certain
amount of cryptocurrencies to another user. In this way, transactions are produced
transactions until the limit is reached and a new block is created. This old block
is sealed and with the new one is when we start to consider who they are
the nodes, which in this case is what we colloquially call miners, these
dedicate their efforts to find new blocks and decipher the algorithm
encrypted before the rest of the miners. The one who finds the block first gives
know the block to the rest of the nodes that will verify that everything is fine. The winner of
this โcompetitionโ will take a certain number of cryptocurrencies.
Having this clear, the basic principles is the moment to know where
we will be able to operate with cryptocurrencies. To operate we will have to register
in an exchange, a platform or virtual space intended for transactions of both
both for buying and selling, these platforms make it possible for anyone to
participate in the cryptocurrency market even provides analysis of the
market providing historical price data and interesting indicators for users to
users have the maximum possible knowledge before investing money in a site or
in another. This has given the ability to perform many operations easily
and rapid, they obtain their profits from a percentage of each operation
that is carried out, next we will see the types of exchanges that exist:
Traditional Exchange: In this type of exchanges, users access their
users for buying and selling. Generally, they tend to be quite
regulated, complies with the basic KYC (Know Your Customer) rules that
is when you have to verify your identity to verify the operation with the
in order to avoid scams, corruption or money laundering. It also complies with the
AML rule, (Anti-Money Laundering) this rule consists of the
compliance with a series of procedures that must be fulfilled to
to know where the money comes from and companies and users are not seen
involved and accused of money laundering. The most famous exchanges
known of this type are Binance and Coinbase. This type of exchange charges
commissions for their services, a certain percentage per operation. As points
negatives it must be said that the attention and support is generally not very
good
cryptocurrencies.
Once we have acquired a series of cryptocurrencies we will have two
options, one is to continue using them for trading which tends to be the most usual or
to store them in a wallet. A wallet is properly speaking a virtual wallet
to store cryptocurrencies, in this way we can manage our
operations and send them here, this wallet allows us to send and receive payments and is
designed to manage two types of keys. One key is the public, a number that
we can share with others to send us money, it would be like a number
bank account and the other is the private key which in this case would be the pin number
to access the wallet and manage all cryptocurrencies. We can
differentiate between various types of wallet:
Hardware wallets:
BASIC PRINCIPLES IN CRYPTOCURRENCIES AND STUDY ON THEIR KNOWLEDGE AND MANAGEMENT
AYLLรN VILLAR, LUIS ENRIQUE
we can trade or use them as wallets. In this case, it is indeed
necessary the connection to the internet.
Online wallets (Web wallets): It is a virtual platform where we deposit
the coins, it could be said that it is like one of the clouds in which
we store our files like Drive, for example, but this space
would only be intended to store cryptocurrencies.
b. Problems they solve
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BASIC PRINCIPLES IN CRYPTOCURRENCIES AND STUDY ON THEIR KNOWLEDGE AND MANAGEMENT
AYLLรN VILLAR, LUIS ENRIQUE
sell that currency and that accentuates the drop, but on the other hand, if there is a news of
that certain important company like Tesla will accept payment for its products in
certain cryptocurrencies that currency will be identified as a strong currency so that
the users will buy it and its value will increase. In this section, we will talk about the
advantages and disadvantages of payments with cryptocurrencies:
Advantages:
Worldwide payments regardless of the currency of each country
paying with cryptocurrencies the value would be the same in both countries and not
there would be a loss or gain in value when making the exchange.
Thanks to the speed of transactions of cryptocurrencies, payments are
much faster, for example, the transaction speed of the
cryptocurrencies usually take minutes or seconds while on the other hand if
using a traditional bank can take several days.
Accepting payments with this currency while traveling would facilitate payment to consumers
avoiding the convertibility of local currencies to the destination country.
There are studies that suggest that only 50% of the population has money in
banks so the rest is kept in cash. Using cryptocurrencies with the
fact of having a smartphone you could store your money in a
secure thanks to the blockchain.
The privacy of users is very protected and requires a lot of
of private data to access virtual wallets, so frauds
would be almost completely eliminated.
They can be used as an investment and not just as a means of exchange, the
value changes that cryptocurrencies have can be seen as a
good investment.
There is a finite number of cryptocurrencies per cryptocurrency, when they are created they
establishes a limit number. This is done to prevent inflation which is
as we said in the previous section, one of the problems of traditional money. For example, in the market there will be 21 m
a. History
Currently, the world of cryptocurrencies is making a lot of noise but
generally we do not know what its origin is and for what purpose they were created. In this
in this section we will address these topics.
Everything started in 1983 with David Chaum, who created the first system
cryptographic that named eCash. This system provided the possibility to pay electronically
electronic in establishments that had this system, although at that time
not many had this technology. Later in 1995, it created
DigiCash which was a system more oriented to protect the data of those who made
electronic payments
The concept of cryptocurrency was created by computer engineer Wei Dai
in 1998, published an essay โb-moneyโ. In which he presented the characteristics that
they should have the cryptocurrencies that we know today. In this essay, Dai
talks about the importance of cryptography and having total knowledge of the
accounting of all transactions, as has been seen currently there are
millions of transactions. As can be seen, this author was already talking more than 20
years of a technology that today we call Blockchain, although at that time
that term did not exist
Now we will situate ourselves in 2008, in this year a person or group of people
under the pseudonym Satoshi Nakamoto they introduced Bitcoin, a currency
virtual that would serve just like the normal ones to acquire products and services through
of the internet. It was launched on November 1st with the publication on the P2P web (Peer to
Peer) of a document โBitcoin: a peer-to-peer electronic cash systemโ.
On January 3, 2009, the first block of Bitcoins called
the one that dates back to the birth of the first cryptocurrencies making Bitcoin the
first digital currency in history encrypted in P2P format, a network of
decentralized communication which means between equals, all users act as
in the same way, the mechanism works by downloading a program for the computer
and this allows sending files between users, an example of a network of this type is
Skype. A few days later, the first transaction would take place which was between
Nakamoto and Finney, at that time Bitcoin had an equivalence with the dollar of
0.00076 dollars.
Until the year 2011 when it reached the price of the dollar, it had little
importance and suffered vulnerability issues and some services emerge from
storage of cryptocurrencies, but with little importance due to the small
number of users who used this technology. This year also sees the
second cryptocurrency in history, Litecoin.
Already in the year 2012 it begins to have a larger expansion, the Bank
European Central identifies its expansion as a threat to the financial system
popular and again during this year a new cryptocurrency, Rippel, also emerges.
In 2013 Bitcoin had great growth reaching the price of
gold and is prohibited in China. It is estimated that by 2014 there were already in circulation
more than 12 million bitcoins. During the following years until 2020 which was the
greater boom there were no significant events, only the creation of more
cryptocurrencies, being the most important that emerged at that time: Dash,
Ethereum, Bit Connect, Bitcoin Cash.
b. Current context
Cryptocurrencies have not had much influence on the global landscape
until the year 2020, the year in which we entered the pandemic was key for everyone to
made many people who did not know of its existence. This repercussion
due to different reasons that we will analyze in this section.
The ways to make money without having to work is something that attracts us and with
this method was seen to have high potential for generating profits, although with
risk. Investors in this case tend to be young people who do not exceed 35 years old. The
ease of being able to operate with the simple fact of having a smartphone made it
everyone realized the possibility of making transactions in seconds
the one that dates back to the birth of the first cryptocurrencies making Bitcoin the
first digital currency in history encrypted in P2P format, a network of
decentralized communication which means between equals, all users act as
in the same way, the mechanism works by downloading a program for the computer
and this allows sending files between users, an example of a network of this type is
Skype. A few days later, the first transaction would take place which was between
Nakamoto and Finney, at that time Bitcoin had an equivalence with the dollar of
0.00076 dollars.
Until the year 2011 when it reached the price of the dollar, it had little
importance and suffered vulnerability issues and some services emerge from
storage of cryptocurrencies, but with little importance due to the small
number of users who used this technology. This year also sees the
second cryptocurrency in history, Litecoin.
Already in the year 2012 it begins to have a larger expansion, the Bank
European Central identifies its expansion as a threat to the financial system
popular and again during this year a new cryptocurrency, Rippel, also emerges.
In 2013 Bitcoin had great growth reaching the price of
gold and is prohibited in China. It is estimated that by 2014 there were already in circulation
more than 12 million bitcoins. During the following years until 2020 which was the
greater boom there were no significant events, only the creation of more
cryptocurrencies, being the most important that emerged at that time: Dash,
Ethereum, Bit Connect, Bitcoin Cash.
b. Current context
Cryptocurrencies have not had much influence on the global landscape
until the year 2020, the year in which we entered the pandemic was key for everyone to
made many people who did not know of its existence. This repercussion
due to different reasons that we will analyze in this section.
The ways to make money without having to work is something that attracts us and with
this method was seen to have high potential for generating profits, although with
risk. Investors in this case tend to be young people who do not exceed 35 years old. The
ease of being able to operate with the simple fact of having a smartphone made it
everyone realized the possibility of making transactions in seconds
the one that dates back to the birth of the first cryptocurrencies making Bitcoin the
first digital currency in history encrypted in P2P format, a network of
decentralized communication which means between equals, all users act as
in the same way, the mechanism works by downloading a program for the computer
and this allows sending files between users, an example of a network of this type is
Skype. A few days later, the first transaction would take place which was between
Nakamoto and Finney, at that time Bitcoin had an equivalence with the dollar of
0.00076 dollars.
Until the year 2011 when it reached the price of the dollar, it had little
importance and suffered vulnerability issues and some services emerge from
storage of cryptocurrencies, but with little importance due to the small
number of users who used this technology. This year also sees the
second cryptocurrency in history, Litecoin.
Already in the year 2012 it begins to have a larger expansion, the Bank
European Central identifies its expansion as a threat to the financial system
popular and again during this year a new cryptocurrency, Rippel, also emerges.
In 2013 Bitcoin had great growth reaching the price of
gold and is prohibited in China. It is estimated that by 2014 there were already in circulation
more than 12 million bitcoins. During the following years until 2020 which was the
greater boom there were no significant events, only the creation of more
cryptocurrencies, being the most important that emerged at that time: Dash,
Ethereum, Bit Connect, Bitcoin Cash.
b. Current context
Cryptocurrencies have not had much influence on the global landscape
until the year 2020, the year in which we entered the pandemic was key for everyone to
made many people who did not know of its existence. This repercussion
due to different reasons that we will analyze in this section.
The ways to make money without having to work is something that attracts us and with
this method was seen to have high potential for generating profits, although with
risk. Investors in this case tend to be young people who do not exceed 35 years old. The
ease of being able to operate with the simple fact of having a smartphone made it
everyone realized the possibility of making transactions in seconds
the one that dates back to the birth of the first cryptocurrencies making Bitcoin the
first digital currency in history encrypted in P2P format, a network of
decentralized communication which means between equals, all users act as
in the same way, the mechanism works by downloading a program for the computer
and this allows sending files between users, an example of a network of this type is
Skype. A few days later, the first transaction would take place which was between
Nakamoto and Finney, at that time Bitcoin had an equivalence with the dollar of
0.00076 dollars.
Until the year 2011 when it reached the price of the dollar, it had little
importance and suffered vulnerability issues and some services emerge from
storage of cryptocurrencies, but with little importance due to the small
number of users who used this technology. This year also sees the
second cryptocurrency in history, Litecoin.
Already in the year 2012 it begins to have a larger expansion, the Bank
European Central identifies its expansion as a threat to the financial system
popular and again during this year a new cryptocurrency, Rippel, also emerges.
In 2013 Bitcoin had great growth reaching the price of
gold and is prohibited in China. It is estimated that by 2014 there were already in circulation
more than 12 million bitcoins. During the following years until 2020 which was the
greater boom there were no significant events, only the creation of more
cryptocurrencies, being the most important that emerged at that time: Dash,
Ethereum, Bit Connect, Bitcoin Cash.
b. Current context
Cryptocurrencies have not had much influence on the global landscape
until the year 2020, the year in which we entered the pandemic was key for everyone to
made many people who did not know of its existence. This repercussion
due to different reasons that we will analyze in this section.
The ways to make money without having to work is something that attracts us and with
this method was seen to have high potential for generating profits, although with
risk. Investors in this case tend to be young people who do not exceed 35 years old. The
ease of being able to operate with the simple fact of having a smartphone made it
everyone realized the possibility of making transactions in seconds
the one that dates back to the birth of the first cryptocurrencies making Bitcoin the
first digital currency in history encrypted in P2P format, a network of
decentralized communication which means between equals, all users act as
in the same way, the mechanism works by downloading a program for the computer
and this allows sending files between users, an example of a network of this type is
Skype. A few days later, the first transaction would take place which was between
Nakamoto and Finney, at that time Bitcoin had an equivalence with the dollar of
0.00076 dollars.
Until the year 2011 when it reached the price of the dollar, it had little
importance and suffered vulnerability issues and some services emerge from
storage of cryptocurrencies, but with little importance due to the small
number of users who used this technology. This year also sees the
second cryptocurrency in history, Litecoin.
Already in the year 2012 it begins to have a larger expansion, the Bank
European Central identifies its expansion as a threat to the financial system
popular and again during this year a new cryptocurrency, Rippel, also emerges.
In 2013 Bitcoin had great growth reaching the price of
gold and is prohibited in China. It is estimated that by 2014 there were already in circulation
more than 12 million bitcoins. During the following years until 2020 which was the
greater boom there were no significant events, only the creation of more
cryptocurrencies, being the most important that emerged at that time: Dash,
Ethereum, Bit Connect, Bitcoin Cash.
b. Current context
Cryptocurrencies have not had much influence on the global landscape
until the year 2020, the year in which we entered the pandemic was key for everyone to
made many people who did not know of its existence. This repercussion
due to different reasons that we will analyze in this section.
The ways to make money without having to work is something that attracts us and with
this method was seen to have high potential for generating profits, although with
risk. Investors in this case tend to be young people who do not exceed 35 years old. The
ease of being able to operate with the simple fact of having a smartphone made it
everyone realized the possibility of making transactions in seconds that dates back to the birth of the first cryptocurrencies making Bitcoin the
first digital currency in history encrypted in P2P format, a network of
decentralized communication which means between equals, all users act as
in the same way, the mechanism works by downloading a program for the computer
and this allows sending files between users, an example of a network of this type is
Skype. A few days later, the first transaction would take place which was between
Nakamoto and Finney, at that time Bitcoin had an equivalence with the dollar of
0.00076 dollars.
Until the year 2011 when it reached the price of the dollar, it had little
importance and suffered vulnerability issues and some services emerge from
storage of cryptocurrencies, but with little importance due to the small
number of users who used this technology. This year also sees the
second cryptocurrency in history, Litecoin.
Already in the year 2012 it begins to have a larger expansion, the Bank
European Central identifies its expansion as a threat to the financial system
popular and again during this year a new cryptocurrency, Rippel, also emerges.
In 2013 Bitcoin had great growth reaching the price of
gold and is prohibited in China. It is estimated that by 2014 there were already in circulation
more than 12 million bitcoins. During the following years until 2020 which was the
greater boom there were no significant events, only the creation of more
cryptocurrencies, being the most important that emerged at that time: Dash,
Ethereum, Bit Connect, Bitcoin Cash.
b. Current context
Cryptocurrencies have not had much influence on the global landscape
until the year 2020, the year in which we entered the pandemic was key for everyone to
made many people who did not know of its existence. This repercussion
due to different reasons that we will analyze in this section.
The ways to make money without having to work is something that attracts us and with
this method was seen to have high potential for generating profits, although with
risk. Investors in this case tend to be young people who do not exceed 35 years old. The
ease of being able to operate with the simple fact of having a smartphone made it
everyone realized the possibility of making transactions in seconds that dates back to the birth of the first cryptocurrencies making Bitcoin the
first digital currency in history encrypted in P2P format, a network of
decentralized communication which means between equals, all users act as
in the same way, the mechanism works by downloading a program for the computer
and this allows sending files between users, an example of a network of this type is
Skype. A few days later, the first transaction would take place which was between
Nakamoto and Finney, at that time Bitcoin had an equivalence with the dollar of
0.00076 dollars.
Until the year 2011 when it reached the price of the dollar, it had little
importance and suffered vulnerability issues and some services emerge from
storage of cryptocurrencies, but with little importance due to the small
number of users who used this technology. This year also sees the
second cryptocurrency in history, Litecoin.
Already in the year 2012 it begins to have a larger expansion, the Bank
European Central identifies its expansion as a threat to the financial system
popular and again during this year a new cryptocurrency, Rippel, also emerges.
In 2013 Bitcoin had great growth reaching the price of
gold and is prohibited in China. It is estimated that by 2014 there were already in circulation
more than 12 million bitcoins. During the following years until 2020 which was the
greater boom there were no significant events, only the creation of more
cryptocurrencies, being the most important that emerged at that time: Dash,
Ethereum, Bit Connect, Bitcoin Cash.
b. Current context
Cryptocurrencies have not had much influence on the global landscape
until the year 2020, the year in which we entered the pandemic was key for everyone to
made many people who did not know of its existence. This repercussion
due to different reasons that we will analyze in this section.
The ways to make money without having to work is something that attracts us and with
this method was seen to have high potential for generating profits, although with
risk. Investors in this case tend to be young people who do not exceed 35 years old. The
ease of being able to operate with the simple fact of having a smartphone made it
everyone realized the possibility of making transactions in seconds that dates back to the birth of the first cryptocurrencies making Bitcoin the
first digital currency in history encrypted in P2P format, a network of
decentralized communication which means between equals, all users act as
in the same way, the mechanism works by downloading a program for the computer
and this allows sending files between users, an example of a network of this type is
Skype. A few days later, the first transaction would take place which was between
Nakamoto and Finney, at that time Bitcoin had an equivalence with the dollar of
0.00076 dollars.
Until the year 2011 when it reached the price of the dollar, it had little
importance and suffered vulnerability issues and some services emerge from
storage of cryptocurrencies, but with little importance due to the small
number of users who used this technology. This year also sees the
second cryptocurrency in history, Litecoin.
Already in the year 2012 it begins to have a larger expansion, the Bank
European Central identifies its expansion as a threat to the financial system
popular and again during this year a new cryptocurrency, Rippel, also emerges.
In 2013 Bitcoin had great growth reaching the price of
gold and is prohibited in China. It is estimated that by 2014 there were already in circulation
more than 12 million bitcoins. During the following years until 2020 which was the
greater boom there were no significant events, only the creation of more
cryptocurrencies, being the most important that emerged at that time: Dash,
Ethereum, Bit Connect, Bitcoin Cash.
b. Current context
Cryptocurrencies have not had much influence on the global landscape
until the year 2020, the year in which we entered the pandemic was key for everyone to
made many people who did not know of its existence. This repercussion
due to different reasons that we will analyze in this section.
The ways to make money without having to work is something that attracts us and with
this method was seen to have high potential for generating profits, although with
risk. Investors in this case tend to be young people who do not exceed 35 years old. The
ease of being able to operate with the simple fact of having a smartphone made it
everyone realized the possibility of making transactions in seconds$ #solana