CryptoURANUS Economics: 08/06/18

CryptoCurrencies


Monday, August 6, 2018

Exchange: Defined in CryptoCurrency

Exchange: Defined in CryptoCurrency


An exchange is defined as a place where something of value can be traded. One of the purposes of an exchange is to ensure fair trades are conducted.


Traditionally, stocks were a common item traded on exchanges. Now with exchanges for cryptocurrencies, many new exchanges are being built in countries around the world.

Ethereum-[ETH]


Ethereum [ETH]:



















Ethereum is the second largest cryptocurrency. Ethereum is built with publicly available software that developers can use to build their own cryptocurrency and software.


Some cryptocurrencies built with it include: OMG, Qtum, EOS, and BAT.

Some of the apps built from it include games, social networks, and marketplaces.



Introduction:

Work on Ethereum started in 2013, when its creator Vitalik Buterin failed to get enough support for his proposal to start application development on top of Bitcoin’s blockchain.

Ethereum is above all a platform for decentralized software development.

The value of its associated currency Ether is based on its utility – it is also used as a fuel that powers the decentralized apps (daps) and other functionality (smart contracts).



Ethereum has its own Turing complete or computationally universal internal code – meaning that any software application can be built on top of it, giving the technology a very broad range of use.

Smart contracts are ones allowing to program a contract which executes when given variables are met.

Finally, blocks are mined in a matter of seconds allowing quick transaction times.


The utility of Ethereum goes beyond digital cash and therefore has garnered a lot of attention from investors and institutions.



Its development team is covered by the Ethereum Foundation, a Swiss non-profit organization.


Every aspect of Ethereum is well documented and openly discussed and there is a lot of effort to promote Ethereum’s functionality to software developers and businesses.

Ethereum is well on its way to storm the industry and become the number one platform for decentralized software application.
What are Smart Contracts?

Imagine you want to bet someone a 1000 ETH on who wins the presidential elections.

You both put 1000 ETH on the smart contract, you agree on the data feed for the election results.



Once the president is elected, the winner is automatically rewarded with 2000 ETH from the escrow contract.


This is a very simple example of a smart contract, but many inputs and conditions can be defined so that, automatically executed smart-contracts can be used for will settlement, trust funds, work-contracts, industrial-grade agreements without the need for intermediaries.


Once agreed upon, the smart contracts cannot be altered by one of the parties or a third party. They can’t be hacked or nullified.



Influencers:


Vitalik Buterin:

The main driving force behind Ethereum. On the cryptocurrency scene since its beginning, Buterin proposed and described Ethereum in his 2013 whitepaper when he was seventeen. After seeing the shortcomings of Bitcoin. Ethereum’s co-founder who openly discussed and presented the technical and strategic choices for Ethereum.



Vlad Zamfir:

A long-term member of the Ethereum R&D team, very voiced and often sharing all his findings without sugarcoating them. Very valuable source of information from Ethereum’s development.



Ming Chan:

The Executive Director of the Ethereum Foundation who is paving the way for the blockchain technology by working on legal and regulatory matters and cooperating with key industry players.



Jeffrey Wilcke:

One of the founders and the creator of Ethereum - as in the one who coded it to existence using the Go programming language. Wilcke has been the head developer of the Ethereum platform ever since.



Investors:


International Private-Banking Institutions and Large Corporations, such-as, J.P. Morgan, Microsoft, Intel, Accenture, BP, and Credit Suisse were the founding members creating the Enterprise Ethereum Alliance (EEA) in February 2017.

In July 2017, the number of organizations in the EEA surpassed 150, pushing the EEA into the largest open-source blockchain initiative in the world.

Newcomers included Cisco Systems and MasterCard among others.



Roadmap:


The development of Ethereum was originally divided into 4 stages.

Frontier was the beta stage, which called for user caution; Homestead is the current version launched in March 2016, considered stable;

Metropolis, which is being tested since September 2017, its main focus is to make dap development and the whole EVM environment more user-friendly to promote steep adoption;

Serenity is the final (for now) stage. It aims to improve scalability by adding sharding, offer more privacy for users and to switch from Proof of Work to Proof of Stake; the so-called “virtual mining” which consumes less resources while keeping the network secure and agreeing on a single sequence of blocks.

The Serenity stage is to make the protocol.


“industry-ready”, deadline for Serenity has not been set yet.



Conclusion:


Since Ethereum is a decentralized businesses can create their business logic and thrive with Ethereum. The potential of Ethereum has been recognized by many Fortune 500 companies who participate in its development.

These include J.P. Morgan, the biggest US bank, Microsoft, Intel, BP, Thomson Reuters, the Russian Development Bank, and Russian Bank System. The development of Ethereum is not stopping, and its use is growing.


WEBSITE-SOURCE



Escrow: Defined in CryptoCurrency

Escrow: Defined in CryptoCurrency

Escrow is a part of the transaction process where the buyer and seller store money or other valuables with a third-party to minimize risk. 


The escrow service holds onto the valuables and won’t release it until the agreement has been met.

Encryption: Defined in CryptoCurrency

Encryption: Defined in CryptoCurrency

Encryption is the process of locking information in an unreadable form so it can be kept secret. Encryption has existed for thousands of years. 


With the use of computers, encryption has become much more difficult to break without the code.

Emission: Defined in CryptoCurrency

Emission: Defined in CryptoCurrency


Emission, also known as Emission Curve, Emission Rate, and Emission Schedule is the speed at which new cryptocurrency coins are created and released. 


Many cryptocurrencies are set up so that new coins are created on a regular basis, this can be measured by an emission rate. Sometimes a limit is placed on how many coins will ever be created, this is known as the max supply.


Some cryptocurrencies have no limit and so a small emission will continue, forever.

Electrum Wallet: Defined in CryptoCurrency

Electrum Wallet: Defined in CryptoCurrency

 

The electrum wallet is a secure and free wallet that allows people to store bitcoin more quickly and easily. Bitcoin transactions are kept on a digital record, known as the blockchain, and is maintained by thousands of people around the world. 


This digital record is growing larger every day and in 2016, it exceeded 100 gigabytes. A wallet is software that interacts with the network of recordings (blockchain) and lets users receive, store, and send their digital money. 


The benefit of an electrum wallet is that it doesn’t have to download and maintain the entire massive blockchain file.

Enterprise Ethereum Alliance [EEA]: Defined in CryptoCurrency


Enterprise Ethereum Alliance [EEA]: Defined in CryptoCurrency

















Enterprise Ethereum Alliance also EEA are a group of organizations all working together to learn better ways to grow and build the cryptocurrency known as ethereum.

J.P. Morgan, Microsoft, Intel, Accenture, BP, and Credit Suisse were the founding members creating the Enterprise Ethereum Alliance (EEA) in February 2017.


In July 2017, the number of organizations in the EEA surpassed 150, pushing the EEA into the largest open-source blockchain initiative in the world. Newcomers included Cisco Systems and MasterCard among others.


EEA Specification 1.0 Document (Download Now)

EEA EXPANDS INTO ASIA WITH JAPAN OFFICE:
KAZUAKI ISHIGURO APPOINTED REGIONAL HEAD
(Read More)






Introducing Enterprise Ethereum Alliance:

The Enterprise Ethereum Alliance (EEA) is the industry’s first global standards organization to deliver an open, standards-based architecture and specification to accelerate the adoption of Enterprise Ethereum. 

The EEA’s world-class Enterprise Ethereum Client Specification and forth-coming testing and certification programs will ensure interoperability, multiple vendors of choice, and lower costs for its members - the world’s largest enterprises and most innovative startups. 

For additional information about joining the EEA, please reach out to: membership@entethalliance.org.




Trust, Privacy & Performance:

Ethereum's intrinsically trusted system is the most promising solution for enterprise Blockchain adoption, given its maturity and multi-purpose design. Privacy and Performance improvements will be mandatory to achieve enterprise-ready status and will be the focus of Enterprise Ethereum’s roadmap.







Community & Resources:


In partnership with the dedicated and robust Ethereum community, Enterprises are coming together to produce the industry standard, open source, free to use blockchain solutions that will be the foundation for businesses going forward.



DYOR: Defined in CryptoCurrency

DYOR: Defined in CryptoCurrency


DYOR short for Do Your Own Research and is defined as doing research before making an investment. 


There are many manipulating people who urge others to buy a cryptocurrency so the price will rise and they can sell it for a profit. 


DYOR is advice to do research studying websites, Reddit, forums, and more before making an investment.

Dust Transactions: Defined in CryptoCurrency

Dust Transactions: Defined in CryptoCurrency

Dust transactions describes a purchase or sale using a tiny amount of cryptocurrency.

Double Spending: Defined in CryptoCurrency

Double Spending: Defined in CryptoCurrency

Double spending is defined as the action of spending digital money twice. It is meant to cheat the first person out of their money before they’ve received it.


Bitcoin was the first digital money to provide a good solution to prevent double spending. Bitcoin prevents double spending with a permanent, public and digital book of records known as the blockchain. 


This blockchain can record any information. Each page in that book can be considered to be a block.

Because the blockchain public, many people are simultaneously verifying and recording information on it using their computers. After enough users in this network confirm your transaction, the guy who wants double spend cannot.

Diversification: Defined in CryptoCurrency

Diversification: Defined in CryptoCurrency


Diversification is defined as a strategy where you buy many different investments as a way to increase your chances of becoming profitable and minimize your chances of losing everything.


Many investors are big fans of diversification, but like anything it can be overdone. By spreading yourself too thin across many different investments, you have a low risk of losing everything, but you also will not make huge profits.


If at the beginning of Facebook, Mark Zuckerberg, the founder had asked you for $5.000 as an investment, would you do it? Of course you would.

As a diversified investor, you might only want to give him $100-500 so you could avoid risking all of your money.
In other words, diversification works well with investments that you have little knowledge or understanding in.

Distributed Ledger [DLT]: Defined in CryptoCurrency

Distributed Ledger [DLT]: Defined in CryptoCurrency


Distributed ledger is defined as a system of independent computers all simultaneously recording data. With distributed ledger technology, identical copies of the recording are kept by each computer.


We can define a distributed system, as one where all computers work independently toward the same goal as one large system. We can define a ledger as a book used to record transactions (money in, money out).


However, distributed ledger technology has evolved beyond recording transactions so that it can record any data. With distributed ledger technology, there is no central authority maintaining the system. 

Instead, updates to the ledger are independently created and then voted on. Once an agreement regarding the update has been reached, a recording is made in the ledger.

The latest version of the ledger, with the new recording, is then saved to each computing system and the process repeats itself. The first type of distributed ledger technology is called the blockchain.

Distributed: Defined in CryptoCurrency

Distributed: Defined in CryptoCurrency


Distributed is defined as a type of computer system that is run simultaneously by many computers but run as a single system.


There are 3 separate goals a distributed computing system may be designed for:

  1. Performance: Be able to do a lot of intense computing in a short time.
  2. Scalability: Be able to service many people, in many locations at the same time.
  3. Reliability: Be able to service people even if one fails or is unavailable.

Directed Acyclic Graph [DAG]: Defined in CryptoCurrency

Directed Acyclic Graph [DAG]: Defined in CryptoCurrency

 

A directed acyclic graph or DAG is a structure that is built out in one single direction and in such a way that it never repeats. Here a “graph” is simply a structure of units. 


“Directed” describes the connection between each unit in the structure, and that they all flow the same way. And “acyclic” means describing something that is not circular or repeating.


A good example of a directed acyclic graph is a checklist. In order to do step 10, you must have done step 9, and before you can do step 8, you must have done step 7 and so on. 

If you were to list out these steps on a graph, you would see the flow from 1-10 and that it never repeats itself going back to 1. If it did repeat, it would not be a directed acyclic graph. 

Another example of a DAG is a family tree. Your grandparents had your mom and her brother. Your mom met your dad and had you. Your mom’s brother met his wife and had their kids. In no way does your grandpa or grandma ever show up again beneath you.

Dip: Defined in CryptoCurrency

Dip: Defined in CryptoCurrency


Dip is defined as a drop in the price of an asset such as a stock or cryptocurrency.

Dildo: Defined in CryptoCurrency

Dildo: Defined in CryptoCurrency

A dildo is a long green or red bar found on a graph showing the changes in price of a cryptocurrency. 


Green and red bars of any size are known as candles.

Digital Signature: Defined in CryptoCurrency

Digital Signature: Defined in CryptoCurrency

A digital signature is permission and proof done through a computer that an authorized person has agreed to something. 


When a signer authorizes something, they use their private key known only to them, to encrypt information along with a stamp of the time of signing. If the information is somehow modified, the time stamp will be altered and the digital signature becomes void and invalid.


The person receiving or verifying the signed and encrypted information uses the signer’s public key to verify the information came from the signer.

Digital signatures are used by cryptocurrency systems to allow the owner to send and receive money.

Digital Asset: Defined in CryptoCurrency

Digital Asset: Defined in CryptoCurrency


A digital asset is defined as any electronic file (text, picture, audio, etc) that you have the rights to use.


If you do not have the rights to using that file, it is not a digital asset. 


Digital assets can be transported or accessed on many types of technology including CDs, computers, USB drives, blockchain, etc.

Digital: Defined in CryptoCurrency

Digital: Defined in CryptoCurrency

 

Digital describes electronic technology like computers. 


Digital technology works by using 1s and 0s. 


1 representing positive or on and 0 representing negative or off.

Decentralized Exchange [DEX]: Defined in CryptoCurrency

Decentralized Exchange [DEX]: Defined in CryptoCurrency


A decentralized exchange is defined as a place where cryptocurrencies are traded directly person-to-person, without a company holding their money or crypto for them.


Compare a decentralized exchange with a centralized exchange. In a centralized exchange, the customer gives their crypto to the exchange and trusts them to hold it safely.


The exchange lets them move the value of that deposit around and later withdraw it in the cryptocurrency they represent.
 
A decentralized exchange doesn’t require you trust someone to hold your crypto for you. This positive quality is known as “trustless”.

Depth Chart: Defined in CryptoCurrency

Depth Chart: Defined in CryptoCurrency


A depth chart is defined as a constantly changing display showing the total number of orders to buy and sell an asset (stock, crypto, etc.).


A depth chart is split in the middle, which is the price of the asset during the last trade. It is also organized across the bottom by price. 


On the left side you have the lowest buy order (price) that buyers hope the asset will become so they can buy it affordably. On the right you have the highest sell order (price) that sellers hope the asset will become so they can sell it for a large profit.

Displaying a massive number of buy orders and sell orders could get complex, so to keep things simple, all orders of the same price are displayed only once. In other words, depth charts stack all orders of the same price together. To reveal those details, you can put your mouse over the price and a pop-up will display the total quantity and value of the orders.

Deposit: Defined in CryptoCurrency

Deposit: Defined in CryptoCurrency


A deposit is normally defined as money given to a bank who safely holds it for you. However, when you deposit crypto, you’re not transferring the money. You’re actually transferring ownership and access of your crypto.



Most people who want to trade their cryptocurrency for another type use what is called an exchange. When a user deposits crypto into an exchange, what they are actually doing is transferring their ownership and access of the crypto to the exchange. 


In other words, they are cancelling their private keys and completely turning over their access to the exchange’s private keys.

Most exchanges are very trustworthy, but some are not. It is thought that most exchanges would reimburse you if they lost your crypto. But no exchange is required by law to do that. 

 

When you deposit your crypto, you are fully entrusting them to keep it safe.

Decryption: Defined in CryptoCurrency

Decryption: Defined in CryptoCurrency


Decryption is the process of making secret information that was unreadable into a readable format for you or computers.

Decentralized Exchange [DEX]: Defined in CryptoCurrency

Decentralized Exchange [DEX]: Defined in CryptoCurrency


A decentralized exchange is defined as a place where cryptocurrencies are traded directly person-to-person, without a company holding their money or crypto for them.


Compare a decentralized exchange with a centralized exchange. In a centralized exchange, the customer gives their crypto to the exchange and trusts them to hold it safely. 


The exchange lets them move the value of that deposit around and later withdraw it in the cryptocurrency they represent.

A decentralized exchange doesn’t require you trust someone to hold your crypto for you. This positive quality is known as “trustless”.

Decentralized: Defined in CryptoCurrency

Decentralized: Defined in CryptoCurrency


Decentralized is defined as a type of system where units are physically spread out, with decisions made from many points, and independence across the network.


Decentralization is actually a combination of 3 parts making up a triangle.

  1. Structure: A system located in multiple places across a space, is a decentralized structure.
  2. Management: A system managed by my many equally powerful units, with no single ruling unit is a decentralized management.
  3. Independence: A system made up of independent units working together for a common purpose is a decentralized independence.

Here are some examples of decentralized systems:

  • The American-English language is a decentralized structure because it is spoken by millions of people across the globe. It is a decentralized management because every person can make up their own mind as to how they speak English. There is independence because you can speak English even if everyone around you speaks a different language.
  • A forest is a decentralized structure because it is made up of thousands and thousands of trees each located some distance from each other. It has a bit of decentralized management because each tree grows in its own way. It has independence because tree can survive on its own despite the fact that they are all surviving as a group.
  • Species of life are decentralized structures because each life form is located in its own space, separate from others. It is a decentralized management because each one manages its own livingness. It has independence because each life form can live on its own without others, to some degree.

Decentralized systems have some advantages including:

  • Resistance to Attack: If several units in the decentralized system are attacked, the system will stay up.
  • Resistance to Problems: If several units in the decentralized system have problems or bugs, the system will remain active.
  • Resistance to Manipulation: If several units in the decentralized system join together with harmful intentions, the system will remain intact and active.

Distributed Denial-of-Service Attacks [DDoS]: Defined in CryptoCurrency

Distributed Denial-of-Service Attacks [DDoS]: Defined in CryptoCurrency

Distributed Denial-of-Service or DDoS is a computerized attack on a website or other online service that causes the service to slow down or shut down, stopping real users from taking advantage of the service. 



A DDoS is caused by one computer gaining control of many other computers, unknown to the owners, and directing the computers towards an online service. 


Because there are many thousands of computers trying to connect with one online service, it becomes overwhelmed and cannot provide services to its real customers.

Dark Web: Defined in CryptoCurrency

Dark Web: Defined in CryptoCurrency

Dark web is defined as a part of the Internet that is only visible to people with special software that allows them to hide their identities. It is known for providing illegal info and services.


The Internet is often broken down into 3 different parts:

  1. The surface web: What you see in search engines like Google.
  2. The dark web: What Google doesn’t see like password protected pages.
  3. The deep web: The anonymous, slightly complex part of the Internet where illegal activities often occur.

While the phrases “dark web” and “deep web” are often used interchangeable, there is a difference as seen above. 

And while the deep web is known for providing illegal information, services and products (drugs, hackers, etc.) not all is bad.

The deep web is only accessible through the free anonymous browser known as TOR. Though accessing it only through TOR may not be enough to keep you truly anonymous.

Decentralized Application [DApp]: Defined in CryptoCurrency

Decentralized Application [DApp]: Defined in CryptoCurrency


Decentralized application or dApp is defined as a software application that has its technology running publicly on a network of computers. 



With a dApp, the technology is being maintained by many individuals instead of by one organization. That network gives the technology security. 


A hacker cannot incorrectly alter the application’s data unless they were able to get access into nearly all of the network’s computers and adjust it there.

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