The Dubai government has recently launched a crypto currency – virtual curency – as part of Smart Dubai aims. Coded digital transactions using digital currency, or blockchain, are believed to be the way of the future for any e-wallet transaction, from buying a book, to paying your bills and more.
Here are 7 things you need to know:
1- Transaction confirmation is critical
Soon after person A sells Bit Coins to person B, that becomes a transaction known in real time to the blockchain network, which keeps tracks of these deals. Confirming the transaction lies at the essence of crypto currency.
2- Authenticated digital currency trades are permanent
After the deal is completed, it is permenantly engraved in the blockchain digital ether and cannot be overturned
3- Transaction facilitators are needed just like brokers at capital markets
They are called miners, and they legitimize the deals adding their digital stamp on them and are rewarded with crypto tokens or Bit Coins
4 – Crypto currency doesn’t have a safe you can break into
Digital funds are no easier to find than the rich coffers of the lost city of Atlantis. They are locked in a public key cryptography system, using hugely complex (cryptic) numbers that makes any attempt to decipher peer-to-peer encrypted deals hopeless.
5 – Crypto currencies are created (mostly) by the private sector
Governments print money and how much of it is printed affects its value. Crypto currency is mostly created by private enterprises as a countermeasure to cash and simply to make money. The more it is used/traded the more it is worth.
6 – Bit Coin is the first crypto currency but not the last
Bit Coin has a nice ring to it and since its launch, almost a decade ago, the name stuck. Even today, it’s the leading digital currency in people’s minds, but more than a thousand other crypto currencies have emerged, most notably LiteCoin, Ripple, Dash, Nxt, NameCoin, Ethereum, BitShares, and others.
7 – Inventor of Bit Coin still missing
When someone creates a revolutionary innovation that has a global impact on humanity and finance, this someone usually wants the world to know they did it. Not Satoshi Nakamoto, an underground internet operative, a digital guru, who came up with the Bit Coin idea and concept in 2008. To date, he is MIA, if, that is, he is still in action.