Cryptocurrencies are nothing more than virtual currencies, used to make payments in commercial transactions. In other words, they have the same function of buying goods and services as the currencies already known to us, such as the Real and the Dollar. But what is the difference between cryptocurrencies and regular currencies?
In addition to being completely virtual, there are three basic characteristics that differentiate cryptocurrencies from regular currencies: decentralization, anonymity and zero transaction cost.
Decentralization essentially means that these currencies are independent of a central bank or the State for their regulation, that is, their price fluctuations occur according to the economy behind the currency, with less state interference than a regular currency would have.
The only central element in the process is the Blockchain system (chain of blocks, in literal translation), a kind of electronic book that records all transactions carried out. Transaction records are stored by a large community of users around the world, not in a single location. This allows access to public and quick verification in the database, in addition to hindering hackers. The complex data technology behind Blockchain is that it ensures that transactions are reliable.
Cryptocurrency transactions also guarantee relative anonymity to the user. Most do not require any personal information to start using the service, which leads some people to argue that illegal activities, such as drug and arms trafficking, could be facilitated by this means.
The zero transaction cost is another major differential of the service. There is no central authority to interfere by imposing any fees on cryptocurrencies. Regular currencies are usually issued by central banks or government institutions, and the entire apparatus behind transactions between individuals is linked to rates set by the government and banks where the transaction takes place. In the case of cryptocurrencies, there is no central authority, so the cost of transactions is zero. For this reason, cryptocurrencies have become a viable alternative mainly for international transactions, where fees can be quite high if carried out by regular means.
With the advancement of cryptographic studies in the 1980s, the possibility of creating a fully virtual currency system was being pursued. In particular, a group of cryptography developers and enthusiasts called cyberpunks (literal translation, virtual punk), led by David Chaum, will lay the groundwork for the creation of cryptocurrencies. The group aims to create a transaction system in which individuals can enjoy total freedom and privacy away from the “Big Brother” viewpoint – referring to the 1984 book, by George Orwell, which speaks of “Big Brother” as an image of an authoritarian government with excessive control over privacy population.
In this regard, GenesisONE along with other fundraising schemes are participating in expanding the use of cryptocurrencies. GenesisONE, however, is more than just a cryptocurrency. This is a more complete financial scheme. GenesisONE has the lofty goal of reaching out to as many marginalized people as possible, perhaps because they don’t have access to cryptocurrency or even to the Internet. This scheme allows someone in one of the developing countries to play the lottery on PowerBall, for example. So in other words, that person has the same opportunities as the average American. GenesisONE makes this possible with tokens. This means that each investor is entitled to a number of tokens. And these tokens can be used to plunge directly into various investment projects raised by GenesisONE and investors will be entitled to dividends based on the performance of the projects they have participated in.
GenesisONE is one of the best examples of how cryptocurrencies will dominate sectors of the world economy.
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