A Cypher, or cryptocoin, is any type of digital money that is generated by a group of users who decide collectively to adopt the process of encoding as a means of payment. It could be a “smart coin”, “proof-of-burnished gold” or a “digital trust”. Basically, a Cryptocurrency, or cryptocoin, is simply a binary code designed to function as a standard medium of commerce where public coin ownership details are maintained in a public ledger, also called a database, in a digital form.
This is different from Open Cryptocurrency Standards (OCS), which define the criteria for acceptable standards of behaviour for digital currencies. There have been many proposed definitions of what constitutes a good cryptocoin. However, Cryptocurrency is anything that people will buy to exchange and sell as money. There have been several proposals over the years, however, one of the more noteworthy proposals was to design a standard public medium of payment and therefore centralise the distribution channels for all crypto.
This was followed up by the development of Blockchains which bridge the gap between regular currencies and several alternative forms of distributed ledgers such as the bitcoin. The bitcoin uses a distributed ledger technology known as the peer-to-peer technology (P2P) model, which is quite distinct from the utilisation of the traditional private ledgers. With the rise in popularity of the bitcoin, several other alternatives to the cryptocoin emerged and are currently being discussed and developed worldwide including Dash, Litecoin, Doge Currency, Peercoincons, and Cryptogenic.
As most good things must come to an end, the world of cryptocoin came to an end when the original bitcoin protocol was released in 2021. The implementation of this software required drastic changes in the way that people interact with their local computers and this was problematic for the network, as it had previously relied on the assumption that all users were able to connect to the network at the same time. This created two problems that the protocol was not designed for, but luckily, those issues were soon resolved. Another major drawback with the original version of the bitcoin is that it limited the ability of the user to spend locally, and therefore, currencies that did not have the potential to be traded internationally were left out.
With this in mind, there have been some developments within the field of cryptography and in particular, the field of blockchains. There is now hope that a standard approach can be taken to allow for widespread deployment of digital currencies and as a result the world has witnessed the birth of the first truly international type of cryptocoin, the Nano Coin. A digital asset managed and controlled by an individual, this coin is completely safe from any dangers posed by threats to national currency ownership and is instead stored as an online asset managed by the owner.
There is no reason why a new approach to the way in which money is exchanged should not be explored, especially with the recent increase in attention towards cryptosystems such as the Nano Coin and the underlying decentralized payment systems like the Maidstone platform. Even if we are only just beginning to understand the implications of a worldwide distributed ledger, it is clear that there is much promise for the future of the cryptocoin market and the people who have developed the technology. From here on in, we can look forward to many developments on the technological front, as more businesses look to simplify their operations by taking advantage of the cutting edge technologies that are available.