Crypto's ownership, how does it work?

Hexcolyte

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Quote from: deccarro on January 09, 2018, 12:03:49 PM

So one cryptocurrency will never be strong if there won't be enough miners? So we need to think that crypto is more like gold node than paper money? There is only as much gold as you dig?

Mostly correct, thats how blockchain works. To achieve decentralization, miners are important to keep the network alive. If one miner is mining faster than everyone else, he has the possibility to alter the blockchain.

Obviously cryptocurrency is not like paper money, it has limited supply, so saying it as gold is basically correct.

deccarro

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So one cryptocurrency will never be strong if there won't be enough miners? So we need to think that crypto is more like gold node than paper money? There is only as much gold as you dig?

Hexcolyte

full member

Activity: 490

Merit: 102

Quote from: alizay on January 09, 2018, 02:57:41 AM

One says that crypto belong to nobody and everybody in the same time thanks to the concept of blockchain. What is the status of the people who create crypto currencies then? What is their power over the currency they create and who decides about the forks?

To put it simpler, blockchain technology relies on something called peer-to-peer network, which is essentially a network that connect many computers across the world. The one who started/created a cryptocurrency may own a big amount of his own currency because he is the first person with the ability to mine. But he can choose to make his currency public as soon as the genesis block is mined and choose to mine it further or not. They have no power over their own cryptocurrency, only the participants of the cryptocurrency have the power, hence the decentralization.

The fork is decided by the participants of the network, mostly the miners since they are the one protecting and expanding the chain. In order to initiate a fork, they must be a reasonable amount of participants support the idea of fork. One needs to control a huge part of a blockchain in order to create a fork by himself.

alizay

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Activity: 123

Merit: 3

One says that crypto belong to nobody and everybody in the same time thanks to the concept of blockchain. What is the status of the people who create crypto currencies then? What is their power over the currency they create and who decides about the forks?

Topic: Crypto's ownership, how does it work? (Read 142 times)