What is Cryptocurrency ?
New Generation Digital Money
Decentralized encryption is generated by the whole system in a collective manner, which is defined when the system is created and is known to the public. In centralized banking and economic systems such as the Federal Reserve System, corporate boards or governments control the supply of currency by printing units of fiat money or demanding additions to digital banking ledgers. In case of decentralized it, companies or governments cannot produce new units, and have not so far provided backing for other firms, banks or corporate entities which hold asset value measured in it. The basic technical system on which decentralized money is based was created by the group or person known as Satoshi Nakamoto.
As of March 2015, hundreds of e-Dinarspecifications exist; most are similar to and derived from the first fully implemented decentralized e-dinar, bitcoin.
E-Dinar is designed to gradually reduce the production of money, which is the ultimate limit on the total amount of money in circulation. Compared to ordinary currencies held by financial institutions, the likelihood of being seized by law enforcement is extremely low.
The first timestamping scheme invented was the proof-of-work scheme. The latter now dominates over the world of e-Dinar, with at least 480 confirmed implementations.
Some other hashing algorithms that are used for proof-of-work include CryptoNight, Blake, SHA-3, and X11.
Proof-of-stake and combined schemes
Some e-Dinar use a combined proof-of-work/proof-of-stake scheme. It is different from proof-of-work systems that run difficult hashing algorithms to validate electronic transactions. The scheme is largely dependent on the coin, and there’s currently no standard form of it.