Everyone can make their “bitcoin”

On Friday 22 January artist Sara Makes finished their show Stock Performance in new York gallery. The last straw, and simultaneously the inspiration for Meyohas was the news that the loss of the world stock market amounted to $8 trillion. The exhibition lasted for 10 days. Every day Makes invested a small amount of money and watching your investment.

Then it oil, drawing schedule changes, creating a picture. In an interview with the Atlantic Meyohas said that in his works wants to connect “philosophy, art, understanding of what it is to exist, and Finance”. According to the artist, the relations Finance as “prevent to exist and is entirely invented by people.”. Meyohas has also created their cryptocurrency — Bitchcoin. One Bitchcoin is $100 and is physically supported by 160 square centimeters of one of the works of the artist.

“Selling artwork has become a mechanical process,” says Meyohas, explaining the essence of creating their own cryptocurrency. Bitchcoin, created by the artist, is proof how easy it is to create your own cryptocurrency. In 2014, the publication Fast Company has released training material on how to do it. In their view, the process of writing code is the easiest of the five steps, because all the cryptocurrencies are based on open source Bitcoin or Litecoin.

The first step in creating a cryptocurrency — search community, and only then build the currency. But many people think that first you need to create the code itself is wrong. The Feathercoin cryptocurrency, created by Chris Alice, achieved the best results in December 2013.

Then the capitalization of cryptocurrencies compared to $11 million. Now down to $330 thousand, and in one day carried out operations in the amount of not more than $700. For comparison, the daily turnover of Bitcoin in one day is about $76 million. By the beginning of 2014 the number of cryptocurrencies exceeded 600 pieces.

But only six of them (according to other sources — five) capitalization exceeds $10 million. Bitcoin, Ripple, Psych, Litecoin, Dogecoin and Dash. Capitalization. $5.8 billion. At the end of the 2015 edition of Wired has found a possible creators of bitcoin.

Under the pseudonym Satoshi Nakamoto who supposedly invented bitcoin in 2008, could escape the Aussie Craig Wright. A number of evidence — matching of postal addresses, hidden investments in bitcoin wallets and correspondence Wright — made it a Prime candidate for the role of Creator of the most used cryptocurrency and peer-to-peer payment system. The first operation bitcoin happened in 2010, when American hanic the Laszlo traded 10,000 bitcoins for two pizzas. At the current rate the number of bitcoins equivalent to almost $4 million.

At the time, bitcoins had no value, and the idea to exchange them for pizza struck me as very cool. Compared to the highest price in almost a thousand dollars, which reached a bitcoin in November 2013, its current value does not look so impressive — only $395. Because of this volatility, anonymity and impossibility of state control, to bitcoin in different countries are different. In September 2015, the U.S. Commission on commodity futures trading has equated bitcoin and similar currencies to formal financial tools.

The recognition of currency by the US authorities had an ambiguous effect. Now all exchanges trading bitcoin, must register as regular exchanges and are subject to state regulation. A significant role in the desire of States to regulate the cryptocurrency played the online store of Silk Road drugs. Since 2012 almost all transactions on the website paid with bitcoin.

Store founder Ross Ulbricht in may 2015, was sentenced to life imprisonment. Two years earlier, when Ulbricht was arrested, it was found that the total volume of transactions on the website amounted to 9.5 million bitcoins. In all, at the time it was released of 11.75 million bitcoins. The official currency of bitcoin is not recognized in any country. But in April 2015 the Czech Vit Jedlicka declared a small piece of land between Serbia and Croatia “the Republic of the Free Oberland”.

He declared himself President, and the official currency has made bitcoin. In Russia? are ambiguous. In July 2015, Vladimir Putin said that “bitcoin is available”. But in September the government returned to the idea of introducing criminal liability for the production, dissemination and use of cryptocurrency. Capitalization.

$214 million. Ripple is a cryptocurrency same currency network. Ripple on the website describes how “the Internet technology for banking transaction”. The maximum amount of Ripple is limited — they can be created not more than 100 billion. This is done to ensure that the currency is not devalued.

When each transaction is charged a Commission — 0,00001 cents. It is the minimum possible amount, which is destroyed and does not come at the expense of either of the parties to the transaction. It serves as a protection against DDoS attacks — attackers unprofitable to boot the system with millions of fake transactions, because in such a case, the Commission will be impressive. Alice is friends with Bob, Bob is friends with Carol. Alice wants to exchange their 50 XRP for 10 bitcoins.

Carol wants to do the opposite of each other they dont know. Any two friends have some limits “how much Im willing to lend to a friend”. And now hes found chain Alice — Bob — Carol (for example, all zero balance of debt). As a result of requests from Alice and Carol had the following. Alice has 10 BTC to Bob, Bob needs 10 BTC Carol, Carol have 50 XRP to Bob, Bob needs Alice 50 XRP.

But now in your wallet Alice has 10 BTC, and Carol is 50 XRP (instead of old money, of course). The balance of Bobs in both currencies is zero. Since 2014 the companys major customers are banking institutions, but to trade in Ripple and can individuals. The first system Ripple was supported by the German Bank Fidor Bank. Then, in December 2014, Ripple Labs has started to work with the payment system Earthport, whose clients include Bank of America and HSBC.

As a result of this transaction, the XRP price has doubled and market cap of Ripple was second, behind only bitcoin. The advantages are some Ripple. First, the money can be kept in any currency — dollars, euros, rubles, gold or Bitcoin. Secondly, the transaction is carried out within a few seconds. Third, not counting 0,00001 cents, the system does not charge the parties any fee.

Capitalization. $198 million. Psych was created in 2013 by a Russian developer Vitaliy Butterini, who is also the co-founder of publication about cryptocurrency-Bitcoin Magazine. In 2014, Buterin was awarded the World Technology Awards for creating a platform.

“Psych is how should work the Internet,” reads the projects website. The project is a platform for running smart contracts applications, which are “the way it was programmed. Without censorship, fraud or influence of third parties”. In interview to the edition “Kommersant” Director of operations for Psych Stephan Tual explained the essence of the platform. Most apps we use today, centralized.

For example, we trust the Bank to keep our money. But needs looking to prevent abuse. We trust Facebook photos of our children, Dropbox documents, medical service — health history. Centralized systems require monitoring and support. They are vulnerable, because the bigger the project, the more it attracts burglars.

To solve these problems and needs Psych, which borrows not only the manifestation of Bitcoin, but also some technical solutions. For example, the technology of the block chain, where Psych, like Bitcoin, stores data. To Finance the Psych Butorin created his own cryptocurrency Ether (ether). Unlike Ripple, Ether can only be exchanged for bitcoin or Vice versa. To get it can in a conventional way by mining.

Ether capitalization of $203 million, and with its help in Psych you can create your own cryptocurrency. On the platform site, which is still in beta, there is information that you will need to create your own cryptocurrency. Basic programming skills, about 0,002 Ether and “cool name”. All programs and cryptocurrencies created on Psych, Ether is used as “fuel” — paying the platform for the resources they consume.

Imagine a world where everyone can produce their own currency, and people have e-wallets that all these currencies to take. Such a currency business could encourage its users, creating a new version of bonus points, which can grow in price. The idea of “create your own currency and pay for it product development” works perfectly well for startups. It is a new model, and earlier it did not exist, because it is not technology. Capitalization.

$137 million. In the history of almost every cryptocurrency there is a fantastic race course that are not inherent to the common currency. In the case of the payments system and stand-alone cryptocurrency Litecoin, it happened 28 November 2013. The day before, one litecoin was $22. The next day the price laytkoina was $43.

Developer Charles Lee created Litecoin in 2011. The system is a fork of Bitcoin — to create used software code Bitcoin. Lee wanted his system was a “Bitcoin 2.0”, so I implemented it all, what he lacked in bitcoin. If not satisfied with the speed of conducting transactions in Bitcoin because of the complexity of computing one set of transactions, are combined into blocks could be generated up to 10 minutes.

In Litecoin the processing time of one block is not more than two and a half minutes. In 2013, the market capitalization of Litecoin was 4 times more, and If he created called cryptocurrency “the silver of the cryptocurrency market”. In his view, “the gold standard — bitcoin — will need to find an alternative”. In the same year Lee left Google and went to the startup Coinbase, which creates a online wallet for bitcoin. At Google, he worked at the Department of Google Wallet.

Capitalization. $32 million. Programmer Jackson Palmer behind the creation of Dogecoin, I wanted to create a cryptocurrency with a “good reputation”. Just at this time, the scandal associated with bitcoin and selling drugs was in full swing, and at the end of 2013 Marcus presented his cryptowall. Dogecoin code is based on code other cryptocurrency — Luckycoin.

Code that, in turn, is on the Litecoin code, and Litecoin is to Bitcoin. That is, Dogecoin is a fork of fork of fork. Unlike other cryptocurrencies, Dogecoin is unlimited number. To produce 5 billion Dogecoin every year, Palmer took in February 2014.

The community took the news mostly in a negative light, noting that the currencys value will decrease with each yearly release. Thanks for killing the value of the currency. A couple of years it will depreciate and will never reach the value of even close to bitcoin. Those who bought Dogecoin in large quantities previously, noted that now their investment has become worthless. This uncertainty is attributed to the cryptocurrency as its main drawback — shoppers cant be sure that Creator will not come to mind spontaneous decision to change something that would affect their deposits.

But some took this change and positively. Dogecoin called the first cryptocurrency, which can get mass distribution. This is attributed to the fact that an unlimited release reduces the chance of speculations among the first users of the cryptocurrency — as it happened with bitcoin. Since the beginning of February 2015, when a decision was made to remove the restriction on the release of Dogecoin, the capitalization of the currency began to decline. On 10 February she was at the peak and was $77 million, since then the indicator has decreased twice.

The Dogecoin community is not collecting money for charity. In January 2014 thanks to collected $50 thousand team Jamaica bobsled was able to go to the Winter Olympics. And in March, the community gathered for 67.8 million coins to provide financial support for the NASCAR driver Josh Wise. At the time this number of coins was equal to $55 thousand. 4 may Ujas went to the track for the Ford Mustang with symbols Dogecoin and took 20th place out of 43.

Capitalization. $26 million. Many cryptocurrencies would have due to the fact that their developers something does not suit in Bitcoin. Developer Dash Evan Duffield was not satisfied with the security of the system. In mid 2012 I began to think about how to improve the anonymity of Bitcoin.

I came up with and offered, I think 10 ways to do this, but the developers of Bitcoin have not implemented any of them. They wanted the basic Protocol has remained unchanged. Having been refused, Duffield over the weekend was implemented in open-source Bitcoin created a system of algorithms X11. Its main objective is to hinder the mining of the currency. He saw that “it works pretty well” and started to create his cryptocurrency.

In January 2014 Duffield announced cryptocurrency XCoin. Then there were several restarts and changes of name. In the end, Duffield renamed the system and cryptocurrency in Dash, combining the words digital and cash.

The biggest disadvantage Dash has become the initial mining or “intamin” mining cryptocurrency in the first hours and days after launch. In the first hour after launch, users have produced 500 000 units of currency. Over the next 43 hours were obtained one and a half million units. Currently two million units of account for a third of the entire Dash cryptocurrencies in circulation. The situation Duffield explained the error in the code.

According to him, this error was incorrectly converted the progression of difficulty with the constant mining. At this time my life was a real chaos. Even without Dash I had a lot of work — I worked 120 hours per week. Sometimes I am impatient and I admit I had to wait a week or two to thoroughly test the code before running.

Source: google.co.uk/blog/romans-barbarians-lean-startup/

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