What is a cryptocurrency like Pandacoin, Bitcoin, Litecoin and Dogecoin? After-all, doesn’t money have to be backed by a government or a commodity like gold to be worth anything? What are crypocurrencies, and how are they made?
A cryptocurrency is a digital currency stored in digital form on what is called a “blockchain”, distinct from traditional currencies which are represented in physical form with paper/plastic notes or metal coins. The blockchain can be understood as a digital public ledger which tracks coins coming into existence, and coins moving from place to place. This digital currency in the form of information is created through the process of solving algorithms. That is, you start off with an algorithm or formula which contains the information in question, which is then solved.
There are so many cryptocurrencies out in the wild after Bitcoin paved way with it's innovation to the world. take at look at Pandacoin's Crypto Crash Course guide what type of crypto to stay away from.
Some coins, such as Bitcoin (BTC), Litecoin (LTC), Pandacoin (PND), and Dogecoin (DOGE), are clearly secure coins that are moderated by developers that have no intention of harming their community members. These coins are defined by highly active developers and/or a highly active community; a fair distribution period, and a good history.However, there are many coins out there that were developed for the sole purpose of making the developers of the coin lots of money. These coins are usually quite new, or have a very poor history. They usually have a very unfavorable distribution period, either with what they call a premine, or a fastmine period, where the developers and/or a select group of individualstake a large bunch for themselves unfairlybefore they allow the public to get their hands on any. Usually POS coins have a very short POW period during which the coins are distributed. They usually don’t call
this a fastmine period, but in general it is a distribution of 100% of the coin in a very short period of time. Pandacoin is a POS coin that had the longest POW period of all others, making it the POS coin with the fairest distribution. This means that instead of only a few people getting all the coins, hundreds were able to mine it for a long period of time, making sure that the coin was distributed fairly, even among those that didn’t hear about it right away!
Why should a business go through the process of transitioning from only traditional currencies to accepting digital currencies? What is the benefit of moving to intangible currencies? Here, we will investigate the benefits of cryptocurrency, and how it can fundamentally change the experience of vendors and businesses.
Cryptocurrencies at the current point in time are driven by tight knit communities that are highly motivated. This means that if there is a vendor that begins to accept that cryptocurrency, there is a very high likelihood that that vendor will receive business through the community of that cryptocurrency. That is, the community will most likely support the vendor merely because the vendor is supporting their coin, even if they wouldn’t have purchased from that vendor otherwise.