The Jamaican team qualified for the 2014 Winter Olympics was able to raise $ 25,000 through the virtual currency known as Dogecoin in just a few hours.
Lack of budget for athletes to attend the event led a group of athletes’ followers to make a call for the donation of funds, sufficient to finance their trip to Russia. The contribution was made through the digital currency that is identified with the face of a dog Shiba Inus.
Bitcoin is the best known and most used electronic currency, but Dogecoin is part of a long list of virtual money that has proliferated in cyberspace following the success of Bitcoin and similarly by its alt-currency Litecoin work similarly.
“The popularity and strength of these coins is in the way we operate. Their production system is based on mathematical algorithms, making them very safe, also employs a huge network of users that helps to verify the transactions that are performed, which gives transparency to the process,” he tells the BBC Jeremy Bonney, editor of Coindesk, an online publication dedicated to the analysis of virtual currencies.
Other analysts however say that some virtual coins have risks and the possibility of being used for criminal activities. Another criticism is the volatility in the price of many of these coins.
Bitcoin first popped up in 2009 and its essence is to avoid the presence of intermediaries such as banks, in the process of money creation and the transactions made with it. This is achieved through a technology that allows users to share information directly, without the need for servers, called P2P, or peer network (peer to peer).
To perform operations performed a procedure called mining, which is the resolution of a mathematical algorithm. For each problem solved Bitcoin block is processed.
To get it, you have to have some kind of virtual mailbox from which you send and receive electronic currencies, which are stored in a “wallet” that is hosted on the network.
It is difficult to know how many types of digital coins exist today, but the coinmarketcap.com website, which is dedicated to recording the market capitalization of this type of currency in real time, has a list of 78.
Below is a selection of some of the most popular alternative virtual currencies that currently exist, based on the market capitalization today. (In the description information from the websites of each one is used).
Litecoin uses the same electronic currency Bitcoin system, but differs in aspects such as the confirmation of transactions occurs more quickly, because it occurs in less than three minutes.
Additionally, the process of mining can be done with computers that do not require large capacity and are more common among users.
Is in circulation since 2011, and in recent months its value fluctuated considerably, in the early days quoted at $ 0.05 and others at $ 48. The current price is $ 23.48.
Safety and efficiency are part of the supply of this currency. Both elements are related to the method including, known as proof-of-stake, which forces to conduct operations with the currency, to prove they are the rightful owners of it.
This system, in turn, is more “green” because the transaction verification is simpler than regularly proof-of-work, which is based on complex algorithms that make the computer work used.
Other controls offering help fight the collective process of mining, which has been listed as a failure to Bitcoin because its purpose is to make profits, which goes against his “democratic principles.” This virtual currency has been around since 2012.
The main element that defines Dogecoin is the “meme” Doge, which are snapshots of a dog Shiba Inus that are accompanied by various messages written in grammatically incorrect English and with different colors, usually with font Comic Sans MS.
This concept is combined with the operating principles of Bitcoin, so both work similarly, but is identified with Dogecoin face Shiba Inus, a native breed from Japan. It first appeared in 2013.
This currency is characterized by using an Internet domain that escapes the control of the Internet Corporation for Assigned Names and Numbers (ICANN, for its acronym in English), which can be a big plus for the virtual currency.
The maximum amount that may be of these coins is 21 million, and is the same limit that Bitcoin has also shared with the latter mining system.
Suffered a technical failure in late 2013 in which it depreciated, but now it is trading at $5.82. Its beginnings date back to 2011.
Despite having little time available to users, was launched in mid-2013 – performance led to increase in value by 500% in just one week in late November.
An important element for Quark is safety, so I used six different algorithms to protect information. Bitcoin, for example, employs one identified as SHA-256.
Transactions are confirmed in about three minutes, due to its technical characteristics, is accessible to anyone provided you have a computer. According to the Wall Street Journal publication, it is accepted as payment by 20 retailers.
To contact the reporter of this story: Jonathan Millet at firstname.lastname@example.org