Cryptocurrency, like any other currency, is an abstraction of a particular unit of value that is not backed up by physical assets. A lot of people may wonder what this actually means. It can be used to refer to any form of money, including stocks, bonds, and even digital goods like ebooks. However, in this article, we will be focusing more on how cryptosocial networks can benefit from it. In general, if you want to use any type of digital asset as collateral, then you should first know what is known as “crypto-derivative” technology.
Basically, a cryptocurrency, or cryptosystem, is digital data designed to function as a medium of anonymous exchange where only unaltered public key cryptography keys are needed to operate the system. This makes it impossible to determine who owns the asset in question. However, there are several examples of this technology including the bitcoin wallet, ShapeShifting, Maidsafe, Myether, and cash.
Let’s look into some of these specific examples to understand how the concept works. ShapeShifting is a form of cryptographic token that was created back in 2021. This kind of token allows users to trade between multiple currencies without having to have the private key to unlock the asset. ShapeShifting works by issuing one master public key and two random private keys. These keys are necessary for users to interact with the ShapeShifting ledger. This is similar to ShapeShifting’s parent token which is the ripple transaction.
Another example of a cryptographically-derived economy is MaidSafe. The MaidSafe currency is actually a Meta Currency as defined by the Hyper decentralized Systems for Anonymous Transactions of Information (bitcoins). This means that no single entity owns the system, instead the value of each currency is determined by how well the network manages the overall value of all coins. For example, a certain value of a Meta Currency could be set and never change while others might increase with time. To get around this, users can use Meta Codes.
ShapeShifting and MaidSafe both use a different kind of technology known as the Chain Protocol. The main difference is that ShapeShifting works with the idea of decentralized networks to MaidSafe work with the idea of secured servers. Both cryptographies still allow for secure transactions and safekeeping however it is ShapeShifting that using an unsecured network.
There are many different kinds of cryptokits out there today including Dashchain and Vertcoin. Most notable among these though is Litecoin, which has been around for quite some time with its simple design and easy approach to learning its cryptography. A future of cryptography may need to move away from the centralized system of government issued currencies to a system that is more decentralized but remains secure from malicious attacks. If the goals of decentralization and security are to be met, it may be time to consider using a simple proof of work like Litecoin that offers great performance along with a great supply of supply.