In addition to bitcoin, where do other digital currencies come from?

In the article, we mentioned that in addition to bitcoin, the remaining coins are copycat coins, so when we talk about digital currency, we usually talk about bitcoin and its imitators. After all, in the field of encryption currency. The real pioneer of only a bitcoin, the rest is its imitators, but some of the more exciting, some even worse, they have a common name, called copycat coins, or called offbeat coins (Altcoin).

At the time of publication, the name of more than 2400 for alternative currency. It is unknown, there may be more things to find. So many large copycat coins in where? We bought these digital currency is how to produce? Mainly the following three ways.

Independent chain

This is the most basic method of distribution. The project to raise funds to create a separate block chain, and then maintain a separate account in the chain.

However, this method is selected by a few projects, because the chain just created usually rarely reached, users rarely, it is difficult to raise funds, and usually requires high technology and relatively poor chain to chain mobility is time-consuming and independent.

Therefore, most of the current project will choose two more simple way to release.

Bifurcation release

That is to say, the issue of a new currency in some of the existing money chain, also known as Initial Fork Offerings (IFO), specifically a mandatory monetary bifurcation, we concepts mentioned in the previous article I mentioned this special length to describe.

Simply, branch is by changing the existing digital currency code from one chain to two chain, a currency is two. How do you understand this sentence? We use bitcoin as an example.

Each kind of digital currency bitcoin, including through the preparation of the code of a set of operation mechanism, such as how to exchange the reservation, which is effective, which is invalid. This mechanism was recognized by the whole network users, all the people like in the network. They work together and maintain Windows XP system with the same. Then one day, a group of users said bitcoin transaction speed is too slow, the fee is high, but also the function is very small. We had to upgrade to win7, so that it can be fast and good, so there is a certain function. At this time, the group changed their system in the computer code XP and its upgrade to win7, but because not everyone thinks win7 is better, so there will still be a group of people feel the old system better, slowly but steadily, the function is very valuable, so they refused to play an upgrade. The amazing thing happened. People do choose to upgrade faster processing business, and become more, but in between the two systems. The difference is too big and the code may not generate win7 compatibility, release orders only through the win7 to understand. A point in time in the two different systems XP released transaction instructions can only be XP (the same amount) receiving. It is regarded as a different thing. At this time, we said bitcoin or some other digital currency has a hard bifurcation, win7 will continue in the new deal approved. The tensile block chain, and will continue to expand XP in the original chain, a chain block into two, a new currency was born.

This is the first method to issue coins. Of course, the above analogy is essential in order to help you better understand fork. The actual situation is not necessarily upgrade. It is difficult to judge the quality of the code in the short term. What is worse, about who is the real bitcoin debate, like bitcoin as cash. Because of the bifurcation of any currency is a major blow to the original consensus group, in the long run, social division and stakeholder differences of opinion and consensus is not conducive to the development of any of the original currency.

By the way, in addition to hard fork, and a soft fork. In simple terms, the old system of XP has been repaired, and add some limited function to optimize the old system without the need to upgrade the system. Upgrade, the old system can still be compatible with each other, and the XP system can support the repair of some of the more advanced features, although unpatched XP does not support, but those involving senior repair XP function is very good, so as to avoid the bifurcation of currency, usually to upgrade the original currency options.

The token issued

In support of smart contracts (usually Ethernet Square) in the chain is the first coin issued new currency issues (IC0, initial coins). How to understand and use Ethernet square as an example.

All contracts to support intelligent chain stores, including Ethernet square, actually provide more free accounting services. In addition to the recording of their etheric Fang exchange record, the miners can also record the release of new records in other matters when needed. When I was in the money, I actually commissioned to write a workshop Ethernet miners account. This account is that we use a small amount of ether ether or for a small workshop, workshop as cost, transfer to our account or create alternatives. What we usually call them token card or token, how to understand it? We will tell you a word, integral this thing like a barber shop.

In the barber’s books, you can not only record cash transactions, can also record the customer to customer A integral, B integral, integral customers, how much is this. We can specify the name, amount, logo etc.. The only difference is that the score is TaiFang network support formats and standards based on Ethernet is therefore recognized by fang. We are the standard called ERC-20. These different points can flow freely in the etheric Fang in the network, customers can exchange their own. As long as you pay a small fee as the etheric Fang Fang, Ethernet can help record the exchange.

All organizations and individuals are free in the etheric Fang platform to distribute their integral to the public commitment to these points, such as the replacement of the blower, and believe that people will buy it promises, this commitment is a white paper we will call this is usually stop 1CO, this is another kind of remittance the way. When sufficient funds and the number of users is large enough, consider whether the establishment of an independent chain according to the proportion of their transfer users.

It is not difficult to see that the two new coin the cost is almost zero. Frankly, the technical threshold is not as expected so high, many projects will copy and paste. The block chain project dragon is more difficult to identify, so if you lack of basic knowledge and do not understand technology, please choose the ten most valuable currency, because the market is not a fool, before the market value of ten means that the currency is the currency of other investors to choose the high quality of the vote with their feet. Other projects usually have irreplaceable advantages, but also the common group of relatively large number of minefields. Please give priority to them.

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