Principles of operation of cryptographic monetary systems

• Posted by Porest Pompa February 18, 2023 Filed in Arts & Culture #

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  The functioning of almost all known cryptographic systems is based on the mathematical model of blockchain, the most important characteristics of which are anonymity and distribution. Anonymity is ensured by the use of cryptographic coding methods. Thus, in the bitcoin system, coding is used in a module that provides the formation and verification of bitcoin addresses using a digital signature, as well as for sequential hashing (transformation) of the results of transaction blocks, which excludes their change by outside interference.

  The distribution of the system is realized due to the lack of a single control center, when all network members have equal rights, and transaction records are stored on different nodes, that is, decentralized. Therefore, such a network can be called a decentralized payment system, in which units of account or tokens are used as money.

  The bitcoin system is a public network that operates automatically, according to the software protocols embedded in it. And, therefore, it does not obey any "instructions" coming outside the protocol - programmatic or from the Administrator, as, for example, is done in the banking sector when forming transactions.

  Emission (generation of new units of account) here is also carried out strictly according to the protocol. Transferring bitcoin from one wallet to another means writing off a certain number of units of account from one node and the appearance of the same amount on another. The coding methods used ensure the complete anonymity of the owners of bitcoin wallets, which makes the payment system attractive for making confidential private transactions.

  In fact, only bitcoin addresses and ongoing transactions are available and open here. Everything else is anonymous. Any state regulation of money turnover here is impossible to implement technically.
  
  There are also private cryptographic systems on the market that do not fully reflect the principles embodied in the blockchain model, for example, this concerns decentralization. Such systems have a trusted control center, which means they lose some of the advantages of public cryptographic systems. At the same time, they have a higher transaction formation speed and are more stable.

  How to make money on crypto
  Almost immediately after the advent of cryptographic monetary systems, financial projects began to appear, allowing ordinary people to earn crypto money or even receive it for free. First of all, the organizers of such networks themselves were interested in this in order to popularize them and increase the demand for cryptocurrency. This also includes advertising of web resources operating in the cryptographic niche.

  Free or shareware distributions of crypto money continue to this day. This is often done in the form of competitions. For example, it could be a contest to predict the price of bitcoin on a specific day of the month. The winner receives a prize, which can be either a regular, fiat currency, or receiving any privileges, for example, assigning a VIP status to a user account or something similar.

  You should familiarize yourself with BDC Consulting blockchain technology and I am sure that it will be useful for you and will give you the opportunity to earn big money without effort.