In a simplified way, we can define this parameter as the resistance to mine a certain crypto.

The importance of the hardware

To an inexperienced eye, it may seem that the value of extraction of a hardware is constant over time, but certainly,it is not. For hardware there are two aspects to keep under control:

1. the wear of components over time (which diminish their performance)
2. the constantly increasing extraction difficulty.

If the algorithm remain the same,why the difficulty increases? The answer lies in the concept of blockchain data mining itself.

When we try to extract crypto we enter into competition, for the resolution of a block and then to be paid, with other miners.This implies that, especially in the short term, luck has a significant weight. The higher number of more people thattry to extract a cryptocurrency, the higher the difficulty will be. In other terms, it will be more difficult for us to achieve results.

Mining Bitcoin

Equally intuitive is to understand that the increase of miners focusing on one crypto rather than another often relates to its increase in price. Blockchain data mining of Bitcoin, for example, has become a real “challenge” because we are going to collide with big entrepreneurs. Mainly in China, who even rented Boeing 747 to bring faster components to their “Farm”.

Another parameter to keep in mind is that the technological world is constantly evolving. Therefore, buying a hardware that has been present on the market for some time may not be a disadvantage. When a more performing solution comes out, our results could be far lower.

For more information on the world of cryptocurrencies read the other articles on our site.

L'articolo Blockchain data mining: what is the difficulty? proviene da Crypto Age.

Bitcoin as currency

Bitcoin is the first crypto currency, created by the famous and mysterious Satoshi Nagamoto. This project opens the doors to the fantastic world we live today. It is a currency because its main purpose is to transfer value from one subject to another. Moreover, we talk about “crypto” as it is based on cryptography that guarantees security. So make a bitcoin investment equivalent to invest in a currency.

How to make a bitcoin investment

There are different ways to make a bitcoin investment. To invest you need to buy a certain number of coins. Mainly there are two ways of buying: wallet and exchange. The wallet allows you to keep coins on your PC or mobile phone. The exchanges are born as platforms for trading. In recent times they have evolved allowing the creation of portfolios. With exchange wallets we have the ability to instantly convert our coins into other currencies. For other currencies we mean not only virtual but also Euro and Dollar.

Blockchain

The main innovation brought by Bitcoin is the technology on which it is based, called blockchain. The blockchain is a “chain of blocks” in continuous evolution. In fact, a block is added to the rest of the chain once completed with a total number of transactions validated by the work of the miners (for a deepening on mining go to our dedicated mining section).

Nobody can  remove in any way a validate transaction in the Ledger. Furthermore, all nodes in the network have a copy of the transaction, so the system can easily detect a fraud attempt.

Advantages

The Blockchain offers also the great opportunity to give up, during a transaction, the need of an intermediary.  This is because the trust needed to guarantee the transfer is provided by known and non-modifiable mathematical algorithms. This brings numerous advantages, or better cancels all the disadvantages that the human component involves in this area.

L'articolo Bitcoin investment: why is it so important? proviene da Crypto Age.

 The project Dash

Dash is a crypto currency that aims to enable digital transactions of coins quickly and safely. From this point of view, it can be a Bitcoin competitor. Moreover, as Bitcoin, it uses the POW (Proof of Work) for the transactions’ confirmation, which gives the possibility to mine this currency.

Mining

Given the complexity of the algorithm, we recommend to mine this currency with a powerful GPU. Specific equipment is available on the market, just as for bitcoins. Antminer d3 is certainly one of the most efficient products in this sector.

Buy dash cryptocurrency

DAO structure

The crypto “Dash” introduces important innovations. The first is certainly the project structure, named DAO, which provides three separate entities:

1. miners (45%)
2. master nodes (45%)
3. treasure (10%)

Master-nodes (MN) are holders of a wallet with at least 1,000 Dash. They have a fundamental role within the community.

Treasure supports the necessity for updates and the rewards to developers.

Instant send and private send

The type of structure that includes the MN has some advantages also from the functional point of view. In the case of Dash, there is an “instant send” and a “private send”.

Instant send

In the “instant send”, there are 5 confirmations that occur in about 2 seconds. In this way the transaction costs are amortized.

Private send

“Private send” uses an innovative process. This process mixes your input with the inputs of other people. Your coins are not moved from the wallet. So this ensures maximum security and maximum privacy.

Conclusion

This crypto currency represents a very solid project that presents several interesting news.

However, remember the first rule of the crypto world: perform a thorough research on the various projects before buying virtual coins. So we can say that the safest method to buy dash cryptocurrency are the desktop wallets. Finally pay close attention not to share the secret key of your wallet with anyone.

L'articolo Buy dash cryptocurrency: focus on the payments industry proviene da Crypto Age.

The objective

Speaking about Neo, it is more correct to talk about a project and not crypto money. This is because just like Ethereum, it represents a platform on which is possible to develop smart contracts. Neo coin gave itself the ambitious goal of competing with Ethereum.

Neo coin and Gas coins

The first thing to say about this project is that there are two cryptographic currencies. The Neo coins have all been premiered by the developers and are crypto non-divisible. So they can be purchased only for whole units. The seconds are the Gas coins, created instead by the generation of new blocks, with a maximum quantity of 100M for both crypto coins.

Neo vs Ethereum

It is easy to understand that  the token used for transactions and used to remunerate those who validate the blocks is Gas. From this point of view, there are two different figures. The coin holders, which are simply those who hold Neo, and the consensus nodes, which must be voted by the firsts to become such.

As mentioned, the objective of this project is the development of smart contracts as in Ethereum. However, while Ethereum uses a specific programming language for its platform (i.e. Solidity), in Neo it is possible to use more common and simpler languages like Java and C #.

Future improvements

The different protocols planned for this project are interesting too.

NEOX aims to give the possibility to make transactions between different blockchains. Surely a complex and ambitious goal that could represent a big news.

Other protocols are NeoFS (Neo File System). This aims to create a database distributed within the blockchain, and NeoQ, which instead aims to protect the system from potential attacks by quantum computers.

Blockchain technology today represents a secure and almost inviolable system. So in the future could be subject to attacks by quantum computers. Although this is a hypothesis still far in time. It is appreciable that a project can move in a preventive manner.

Conclusions

Neo maybe  a great project, first because with the wide diffusion of crypto world, platform-based projects can have a great success for the whole 2018. Secondly, the possibility of simply holding this crypto to receive a passive income through the Gas seems an excellent opportunity too. On Neo’s official website there is a calculator to evaluate the exact revenues per year.

Finally you can find more information on the world of cryptocurrencies on our site.

L'articolo Neo coin: a Chinese competitor of Ethereum proviene da Crypto Age.