@Wendy Jones T
Thank you for responding! What exactly has you squeamish about bitcoin? My mother says she doesn't trust anything that she can't hold in her hand. lol. Anyway, here’s a good resource. https://bitcoin.org/en/getting-started Bitcoin is the original decentralized cryptocurrency. Altcoins (alternative coins) are cryptocurrency coins that are not bitcoin. Cryptocurrency coins can be traded (bought and sold) and stored on a cryptocurrency exchange such as Coinbase, Bitstamp, Kraken et al. These digital transactions are secure because Blockchain technology is difficult counterfeit or hack. Every block in the chain serves as verification for the block that came before it.
If someone adds a wanky block to the chain that doesn't include the transaction information of all that came before it; it will be rejected.
Aside: this is where bitcoin mining comes in; which is a lot like a lottery because any available computer can mine bitcoin but only one will get the reward. No one knows who will be awarded bitcoin for processing the transaction either. Also, there is a total of 21-million bitcoin available for mining period.
Bitcoin (or altcoins such as Ethereum Litecoin, Bitcoin Cash) rise in value based on demand. Yes, cryptocurrency trading is volatile. And no, it's not regulated by a central banking system. Decentralized means there is no middle person. Blockchain technology is what makes bitcoin cryptocurrency possible. After the housing crisis of 2008, the bitcoin creator wanted to make sure the world wouldn't have to depend on the central banking system ever again. With bitcoin we don't have to - well as long as we can communicate via wireless technology.
See this article: bitcoin without the internet
You and I can make a transaction through our digital wallets without ever involving centralized agencies. We are virtually anonymous to the centralized banking system unless they can track us through our cryptocurrency address.
Now, once the transaction is made; it's final. Our transaction is subject to a mining fee - but it’s a trade between you and I. If you say, I change my mind, oh well. But since you and I know each other I could send you the value you sent me. -Note: The value we originally exchanged could be worth more on less on the day the new transaction is made.
For example, I bought $5 of bitcoin - and minus the transaction fee (mining) I ended up with $4.20... at the time I'm writing this my bitcoin share value is $4.02 USD - I need to include 1 – bitcoin is currently valued at $6,146.30
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But I digress.
There are also tokens in the cryptocurrency system and that's where it gets tricky. Tokens are NOT cryptocurrency. Cryptocurrency exchanges won't except tokens for trading.
But to understand the concept of a token, consider this; a token represents something of value in the system.
For example, in the 90s, you needed a NYC subway token to ride the train. You gave the token booth clerk $1 and s/he gave you a token coin to ride the subway. That token had value but only in the NYC subway system. Take that token elsewhere and it isn't worth the money you paid for it.
That's how tokens work in the cryptocurrency system. A token is programmable digital asset that has value within the owner's system. It can serve as a utility, equity, security or service token. For purpose of this post we'll discuss utility tokens.
The token functions within newly created software application built on blockchain technology. But tokens aren't mined like bitcoin or Ethereum. A founder of a startup can sell tokens for cash or cryptocurrency to fund their cryptocurrency or technology projects.
It appears startups such as Publica is using utility tokens. When startups sell tokens to fund their project it is called an ICO (Initial Coin Offering). In this case, Publica is offering a Book ICO to would-be authors. The author sets the price for the token in their crowdfunding campaign. Once the book is finished it's published on blockchain technology.
Patrons investing in the author's proposed book will purchase tokens with centralized cash i.e, dollars. They will receive something like a digital coupon in return.
The author gets the cash to work on their manuscript. When the book is complete the patron will receive a copy.
So of course, trust is factor. We are writers/publishers not software developers building an application on blockchain technology. We must trust that all these moving parts will add up to actual cash for us and a book for our readers. I also need more information on publishing on blockchain. I will continue to publish updates here.
I'm new to cryptocurrency and blockchain but this represents my current understanding. Feel free to ask me anything - but please understand this is information is not for investment purposes. It's just an overview.
But if you choose to sign up for a Coinbase account – here’s my referral link.
https://www.coinbase.com/join/5b11cf8faa08ff01f4db26b8 Thank you!