Cryptocurrency Predictions for 2022 | Shitcoin, Bytecoin, Coin list

Cryptocurrency Predictions for 2022 | Shitcoin, Bytecoin, Coin list |

The first is cryptocurrency,If you follow the financial news, you may be aware that there are many investors who have made a lot of money on cryptocurrency this year. And if you want to participate in this action, you can think about adding cryptocurrency to your wallet. Before you do this, ask yourself these important questions to make sure this is the right step for you.

crypto to buy before 2022, cryptocurrency forecast 2021, next cryptocurrency to explode 2022 reddit, best cryptocurrency to invest in 2022 for long-term, crypto predictions tomorrow, bitcoin 2022 conference, long-term cryptocurrency predictions, best penny cryptocurrency to invest in 2022, will cryptocurrency be the future, bitcoin price prediction 2022, will we use cryptocurrency in the future, P

In her report, a mysterious person (or group of people) under the pseudonym Satoshi Nakamoto revealed the protocol of this cryptocurrency and presented the first program that implemented it. Then the crypt was known only in narrow circles, and now everyone is talking about bitcoin and constantly: about its growth, decline, forecasts, and so on. However, most still do not know how this cryptocurrency works.

To understand the essence of Bitcoin, it would be enough to read its protocol from Satoshi. However, it is quite difficult for the average person to understand. Quantum physicist, scientific writer, and programmer Michael Nielsen in his blog tried to take a different approach to this issue: he talked about the gradual construction of a cryptocurrency protocol. Ukrainian Capital has adapted its mental experiment to explain what bitcoin is and how it works.

How can we design a digital currency?

The strategy used in this publication involves the gradual creation of bitcoin. We will start with a simple explanation of digital currency based on practically obvious ideas. We will call our experimental currency “infocoin” to distinguish it from bitcoin. Initially, it will have a number of shortcomings that we will get rid of in the process of simulating the Bitcoin protocol. So we will rediscover bitcoin.

At first glance, a perfect working digital currency seems impossible. For example, imagine the first owner of cryptocurrency – Alice. She is tired of fiat money and decided to invent her own currency, which she wants to exchange with her friends for mutual settlements.

Alice’s first idea of ​​how to exchange money, in fact, without money, was a simple ledger – a list where she and others will write down their debts. In today’s world, this could be, for example, a public website where all her acquaintances can visit, read or add debt records.

If Alice wants to give to another person – let’s call him Bob, one infocoin, she just writes “I, Alice, give Bob one infocoin.” The problem with such a public site is that anyone can add any deadline. The question arises: how to protect Alice from the fact that Bob without her knowledge could not just write “I, Alice, give Bob an infocoin.”

Cryptography and digital signatures, such as paired private keys and public keys, can help solve this problem. In order for the line to be considered valid, Alice signs the words “I, Alice, give Bob one info coin” with her digital signature. Bob uses Alice’s digital signature public key to verify the string. If the string signature verification is verified, it means that this string is actually signed with Alice’s digital signature and the correct private key.

This prototype of digital currency is not very striking, but it has all the advantages over a simple list of lines “I, Alice, give Bob one info coin” or “I, Bob, give Alice one info coin”. The signed line creates a commitment and a guarantee that Bob or Alice will not be able to forge payments to each other.

However, there is a problem with this protocol. Bob really can’t forge Alice’s digital signature, but that stops him from simply duplicating the already signed line “I, Alice, give Bob one info coin.” If you don’t come up with a defense, Bob can just repeat that sign with hundreds of times.

Use serial numbers to mark coins

Solving the problem with the simple ability to copy already signed lines, in fact, did not require effort. This issue is solved by one of the features of digital signatures. The fact is that the digital signature is not the same under different messages. It will be radically different, even if there is at least one new character in the line, such as a serial number.

For example, if you add a serial number to each message, the line “1. I, Alice, give Bob one info coin “and” 2. I, Alice, give Bob one info coin “will have completely different digital signatures. Even if the signature on the second line is copied from the first, a public key check will show the “invalidity” of the second.

However, there is always another risk in this process. What protects Bob from the fact that Alice can simply add and sign lines about the transfer of info coins, which she does not really have? To address this issue, it was suggested that the serial number be given not to the strings, but to the info coins.

As the captions of the lines with serial numbers differ, so will the entries “I, Alice, give Bob one info coin with serial number 1” and “I, Alice, give Bob one info coin with serial number 2”. For this scheme to work, we need a reliable source of serial numbers for info coins. One way to create such a source is to open a “bank” of info coins.

This “bank” will provide serial numbers for info coins and keep track of who has how many cryptocurrencies. With the help of such a “bank”, it will be possible to confirm that Alice really has a certain amount of cryptocurrency that she wants to transfer to Bob. The bank’s data will confirm that Alice is not trying to give Bob one info coin twice, and the line “I, Alice, give Bob one info coin with serial number 2” is indeed legitimate.

In order to avoid problems during the transfer of info coins, they are given a new serial number for each new transaction. In practice, this will happen as follows:

Alice comes to the bank and says, “I want to withdraw one info coin from my account.”

The bank reduces Alice’s account balance by one info coin and gives it a new original number that has never been used before. For example, 1234567.

When Alice wants to give this info coin to Bob, she creates and sings the line “I, Alice, give Bob one info coin with serial number 1234567”.

Bob does not trust Alice and gets in touch with the “bank”. He checks that the info coin with this serial number belongs to Alice and she has not spent it yet.

If all is true, Bob informs the “bank” of the desire to accept this info coin.

In the end, the bank updates its records: in its data, the info coin with this serial number no longer belongs to Alice and is in Bob’s account.

In general, the latter decision looks quite promising. However, as you know, a feature of cryptocurrencies is their decentralization. It distinguishes them from conventional concepts of digital currencies – for example, digital currencies of the central bank. Infocom can completely exclude the “bank” from the protocol using blockchain technology.

Create a “bank” by joint efforts

Infocom can significantly change its character if there is no single organization responsible for this cryptocurrency. The idea is that everyone (together) should be this “bank”. Assume that all info coin users keep a complete record of who owns the info coins. We have already registered this as an open ledger or a site where all transactions with info coins are signed. The question arises of how to implement such an idea.

This can be done if there is no single book or site with transaction records, and each user of info coin had his own version of the site with records. This will work like this:

When Alice wants to give the info coin to Bob, she creates a signed line “I, Alice, give Bob one info coin with serial number 1234567” and sends it to Bob.

Bob uses his copy of the transaction records to verify that the info coin with serial number 1234567 really belongs to Alice.

If that’s true, Bob sends everyone a line signed by Alice, “I, Alice, give Bob one info coin with serial number 1234567” and his line about wanting to take this info coin.

Alice and the other exchange participants receive these lines and write down that Alice’s account has decreased by one info coin, which has been transferred to Bob’s account.

Thus, the info coin protocol now allows you to do without a centralized system of transaction records. However, there are some problems. The first is the problem of assigning serial numbers to info coins, which will be addressed below. Second, there is the problem of re-spending with more than two network members.

The current protocol allows Alice to cheat and spend one info coin several times: for example, to give them to Bob and Charlie at the same time. She can just create two lines: “I, Alice, give Bob one info coin with serial number 1234567” to send to Bob, and “I, Alice, give Charlie one info coin with serial number 1234567” to send to Charlie. Provided she sends these messages at the same time, Bob and Charlie receive the same info coin from Alice, unaware of the transaction to another.

How can we solve the problem of recurring costs? The obvious solution for Bob will be to check this agreement not only in his records but also in the records of other participants. He can broadcast the prospective agreement to all network users and ask them to help determine if the agreement is legitimate. This will work like this:

When Alice wants to give info coin to Bob, she creates a signed line “I, Alice, give Bob one info coin with serial number 1234567” and sends it to Bob.

Bob uses his copy of the transaction records to verify that the info coin with serial number 1234567 really belongs to Alice and sends a request to other participants to see if Alice owns the info coin.

If everything is correct and enough participants send the message “Yes, Alice owns info coin 1234567, now it can be transferred to Bob”, Bob sends everyone a line signed by Alice “I, Alice, give Bob one info coin with serial number 1234567” and his line about the desire to take this info coin.

Alice and the other exchange participants receive these lines and write down that Alice’s account has decreased by one info coin, which has been transferred to Bob’s account.

However, this protocol has inaccuracies. For example, “from a sufficient number of participants” – how many? It is impossible to get answers from all participants because their number is unknown a priori. It is difficult to understand this right now, but instead, in the next section, we will indicate the problems in this protocol. Resolving them will have a big positive side effect, which will make the protocol even clearer.

Proof of work

Let’s say Alice still wants to cheat and spend again. It can do this by monitoring network messages: for example, create a billion fake users who will confirm its false transactions. Bob and Charlie will receive a billion confirmations that Alice is 100% owner of fake info coins.

The way to avoid such a situation is the idea of ​​”proof of work” (proof-of-work). It contains a combination of two other seemingly paradoxical ideas:

It is artificial to make the computer calculations required to confirm transactions difficult. This will make confirming the transactions that network users have to perform costly for them.

Reward network users for performing heavy computing and transaction verification assistance.

To understand this process, you need to know what a hash function is. Hashing is the process of converting data into a fixed-length binary string. For example, bitcoin uses the well-known cryptographic hash function SHA-256 – it converts any data into a string of 256 zeros and ones or hashes.

The hash of large text will be radically different, even if you change at least one character in it. However, it will always be the same with the same input. The main feature of cryptographic hash functions is that it is impossible to decode the hash back into the text. Real decoding can be done only by selecting the source text, hashing it, and hoping to guess the encoded text (2 in 256 degrees of possibility).

Let’s try to use the hash function SHA-256 in order to complicate the work of Alice in an attempt to re-spend. In order to confirm any transactions, it is not enough to pass the message “Yes, Alice owns info coin 1234567, now it can be transferred to Bob.”

To confirm the transaction, you now need to find the number whose hash (256 zeros and ones) and copies of the records start with a certain number of zeros – for example, 10 zeros. The required number of zeros, which is a confirmation of the operation, is not constant and is determined by the system of “complexity” so that one operation is confirmed in an average of 10 minutes. This will work like this:

When Alice wants to give the info coin to Bob, she creates a signed line “I, Alice, give Bob one info coin with serial number 1234567” and sends it to Bob.

Bob uses his copy of the transaction records to verify that the info coin with serial number 1234567 really belongs to Alice and sends a request to other participants to see if Alice owns the info coin.

If participants see that everything is true (Alice actually owns info coin 1234567 and can pass it to Bob) to the confirmation copy of the transaction records, they select numbers whose hash with these records meets the conditions of the system: the first 10 digits must be zeros.

The probability of getting the “right” number is 1 to 10 billion. Suppose David was lucky – he found the right number and can confirm the operation.

David is the first to distribute this number online – proof of his work, and a copy of transaction records, which confirms the correctness of the transfer of one info coin from Alice to Bob.

Other network members can check if this number is “correct”. To do this, they take a copy of the records and add this number to it. If the hash really starts at 10 zeros, that’s proof of David’s work.

If true, they update their copies of the records by adding the line “I, Alice, give Bob one info coin with serial number 1234567.”

As mentioned, this process is difficult: it requires a lot of resources to be the first. For the idea of ​​”proof of work” to work, users need an incentive to help verify transactions. The solution to this problem is “reward”.

The reward for mining and trust in the “biggest” work

Suppose we add to the protocol a certain reward for those who have successfully checked the transaction block. For example, let’s add a certain amount of info coins to their account. The reward should be large enough to create an incentive for users to participate in the test.

In the bitcoin protocol, this process of confirmation and reward is called mining. For each tested block of transactions, the successful miner receives a reward in bitcoins. Initially, this reward was set at 50 bitcoins, but every 210,000 tested blocks (approximately every four years) the reward is halved – there is a halving. There have already been three such divisions, and now the mining reward has dropped to 6.25 bitcoin.

According to forecasts, in 2140 the total supply of bitcoin will stop growing. However, this will not remove the incentive to verify transactions. Bitcoin also makes it possible to allocate some amount in the transaction as a commission for the transaction, which will go to the miner-verifier.

This confirmation process, which we added to the info coin protocol, solves the problem of possible re-costs. Any fake changes that Alice wants to add to the distributed copy of the records will require her to calculate this and all subsequent transactions that, for example, Bob performs on behalf of Charlie and all other members of the system.

Of course, Alice’s deception is not impossible: she can try to calculate the proof of her re-spending and all subsequent operations carried out by participants in the system. However, this is only possible theoretically: to do this, Alice must control more than 50% of all computing power. In today’s world, such as bitcoin, this is not possible.

Actually, the name of blockchain technology, ie a chain of blocks, comes from this process. Theoretically, Alice can constantly create and validate her own chain of blocks. Alice can’t have the computing power to argue with the whole info coin system. Sooner or later, such “side branches” are cut off, and then only the “main sequence of blocks” is calculated – the longest, for which the “most work” was done.

This concludes the basic description of the basic ideas sufficient for a general understanding of the protocol and technology of bitcoin. The text does not describe many details of the technology, as the goal was not to make a technical description. The rules of Bitcoin are simple and easy to understand. However, this does not mean that it is easy to understand all the implications of these rules.

Can I start cryptocurrency on my home PC now? Such questions are asked by many people today against the background of another growth in the media of this type of asset. Today, “getting into mining” is not so easy, why – “Ukrainian Capital” understood.

Frequently Ask Questions

How to make money gambling online?
How to make money dropshipping?
How many views to make money on youtube?
How to make money creating apps for android?
How to make money using cryptocurrency?
How to make profit and loss statement?
How to make money without money or a job?
How to make money with a website without selling anything?
How to make money making music?
How can make money on facebook?
How to make money through cryptocurrency?
How to make money with cryptocurrency?
How to make money 101?
How much to make money on youtube?
How can make money from tiktok?
How to make money through blogging?
How can make money on youtube?
How to make money and become rich?
How to make money without investment?
How to make money youtube?
How to make money coding as a beginner?
How to make money playing games?
How to make money by playing games?
How to make money staking crypto?
How to make money from facebook?
How to make money with bitcoin?
How to make money on 5 acres?
How to make money with 6000 dollars?
How to make money with trust wallet?
How to make money through facebook?
How to make money now fast?
How to make money live streaming?
How to make money right now?
How to make extra money near me?
How to make money and fast?
How to make money right now online?
How to make money video editing?
How to make money day trading?
How to make money coding as a kid?
How to make money google?
How to make money through google adsense?
How to make money now?
How to make money and be a stay at home mom?
How to make money with affiliate marketing?
How to make money in stocks?
where to make money fast?
How to make money without education?
How to make money in 5 minutes?
How to make money through nft?
How to make money and get paid today?
How to make money 3d printing 2020?
why to make money online?
How to make money posting ads?
How to make money daily?
How to make money gaming?
How many followers to make money on instagram?
How to make money recommending amazon products?
How to make money near me?
How to make money with google adsense?
How to make money google adsense?
How to make money using your phone?
How to make money online in nigeria?
How to make money blogging for beginners?
How to make money in one hour?
How to make money online without paying anything?
How to make money daily on luno?
How to make money 2021?
How to make money everyday without a job?
where to make money online for free?
How to make money online for free?
How to make money fast?
How to make money by watching ads?
How to make money quickly?
How to make money online for beginners?
How to make money easy and fast?
How to make money gta 5?
How many streams to make money on spotify?
what apps to make money?
How to make money with 0 dollars?
why to make money?
How to make money blogging?
How to make money youtube videos?
who to make money online?
How to make money on fiverr without skills?
How to make money quickly from home?
How to make money like onlyfans?
How to make money from blogging?
How to make money nft art?
How to make money as a teenager online?
How to make money easy?
How to make money through amazon?
How to make money selling on amazon?
How to make money online?
How to make money doing surveys?
How to make money stardew valley?
How to make money posting quotes on instagram?
How to make money in real estate?
How to make money mining crypto?
How to make money guest blogging?
How to make money on fiverr?
How to make money just by watching videos?
How to make money just using your phone?
How to make money from google?
who to make money fast?
How to make money without a job as a kid?
How to make money returning items?
How to make money when your 11?
How to make money very fast?
why to make money from home?
How to make money on youtube?
How to make money without a job?
How to make money using instagram?
How to make money coding?
How to make money under 18?
what ways to make money?
How to make money everyday?
How to make money online and fast?
How to make money and work from home?
How to make money selling food from home?
How to make money double?
How to make money sitting at home?
How to make money using amazon?
How to make money easily online?
How to make money at home?
How to make money from home?
How to make money 3d printing?
do blogs really make money?
How to make money by watching videos?
How to make money as a teenager?
How to make money when 14?
How to make money youtube channel?
How to make money farming 5 acres?
How to make money listening to music?
How to make money online and get paid?
How to make money when your 13?
How to make money selling nfts?
How to make money young age?
How to make money?
How to make money with nft?
How to make money selling drugs?
How to make money living in a van?
what to make money at home?
How to make money grow?
How to make money without working?
How to make money playing minecraft?
How to make money when 16?
How many views to make money on tiktok?
How many views to make money on facebook?
How to make money without doing anything?
How to make money remotely?
How to make money van life?
How to make money without working for someone?
How to make money on tiktok?
How to make money make money?
How to make money doing nothing?
How to make money 1000 a day?
How to make money vlogging?
How to make money quick as a teenager?
How to make money through instagram?
How to make money young?
How to make money on youtube without making videos?
How to make money as a student?
How to make money as a 12 year old?
how to make money mining bitcoin?
is make money app legit?
How to make money as a kid?
How to make money through youtube?
How to make money and save money?
How to make money listening to music on spotify?
How to make money under the table?
who to make money from home?
How to make money as a kid at home?
How to make money without a degree?
How to make money legally?
ideas on how to make money?
How to make money kids?
How to make money very easy?
How to make money using youtube?
How to make money from youtube?
How to make money in youtube?
How to make money on instagram?
How to make money from instagram?
How will make money?
How to make money reddit?
what is cryptocurrency how to make money?
why to make extra money?
How to make money in gta 5 online?
How to make money gta 5 online?
How to make money and stay at home?
How to make money in gta 5?
How to make money nms?
How to make money and travel?
How to make money tropico 6?
How to make money 15 year old?
How to make money via amazon?
How to make money quora?
How to make money gta 5 offline?
How to make money in gta 5 offline?
How to make money 3d printing 2021?
How to make money and not work?
How to make money while you sleep?
How to make money rdr2 online?
How to make money cyberpunk?
How to make money no man’s sky?
How to make moneywith 4000 dollars?
How to make money living on the road?
How to make money nft?
How to make money 14 year old?
How to make money reading books?
is make money online real?
How to make money 2022?
How to make money heart?
how much views to make money on youtube?
How to make money when 12?
How to make money reselling?
what to make money fast?
How to make money yourself?
How to make money 2021 reddit?
podcasts on how to make money?
How to make money when traveling?
How to make money homesteading?
How to make money uk?
How to make money and be happy?
How to make money streaming games on facebook?
How to make money via instagram?
How to make money hunting?
How to make money knitting?
How to make money with 0 investment?
how many subscribers to make money on youtube?
How to make money hiking?
How to make money at 60 years old?
How to make money like jeff bezos?
How to make money hauling cars?
How to make money crypto mining?
How to make money like a bank?
How to make money via youtube?
How to make money during inflation?
How to make money in 6 months?
How to make money living off grid?
How to make money using canva?
How to make money 24 hours a day?
How to make money playing pubg mobile?
How to make money like a gangster?
where to make money order?
is make money online legit?
how will musicians make money in the future?
who to make money on youtube?
when to make money on youtube?
How to make money jars?
How to make money saving box?
How to make money plant bushy?
How to make money box?
How to make money cake?
How to make money leis?
How to make money youtube shorts?
How to make money envelope?
how cryptocurrency is made?
how cryptocurrency mining works?
how cryptocurrency trading works?
how cryptocurrency works for beginners?
how cryptocurrency started?
how cryptocurrency value increases?
how cryptocurrency works youtube?
is cryptocurrency halal?
is cryptocurrency legal in pakistan?
is cryptocurrency haram?
is cryptocurrency legal?
is cryptocurrency halal in islam?
is cryptocurrency halal zakir naik?
is cryptocurrency mining legal in pakistan?
is cryptocurrency halal or haram?
should cryptocurrency be regulated?
should cryptocurrency be banned?
should cryptocurrency be banned in india?
should cryptocurrency be legalised?
should cryptocurrency be legalised in india?
should cryptocurrency be regulated by the government?
should cryptocurrency be taxed?
should cryptocurrency be capitalized?
was cryptocurrency banned in india?
was cryptocurrency banned in nigeria?
cryptocurrency was invented by?
cryptocurrency was introduced in 2009?
why was cryptocurrency created?
when was cryptocurrency introduced in india?
when was cryptocurrency launched?
why was cryptocurrency so high in 2018?

Social Media Profiles

 Facebook Click here
 Twitter Click here
 Instagram Click here
 Youtube Click here
 IMDb Click here
Wiki Click here

 

 

 

 

Leave a Reply

Your email address will not be published.