The foundation of Cryptocurrency is a global distributed ledger system which makes use of digital certificates as legal evidence of authenticity. The main idea behind Cryptocurrency is to correct the inherent difficulties of traditional national currencies by placing the control and authority in the hands of the users themselves. Each of the different Cryptocurrencies follow the same properties and 3 works of currency. They all also try to solve some fundamental real-world issues.
The main aim of any contemporary cryptography system, including the backbone of the majority of the Cryptocurrencies, is to ensure secure payments online. Any Cryptocurrency, such as Dash, aims to provide the best possible solution for this need by providing secure online transactions through the use of private, pooled addresses, known as a wallet. The Dashchain is currently the only mainstream Cryptocurrency that has adopted this approach.
All other Cryptocurrencies follow some variation of this approach. The XCP token is used as an example, as it serves as a prime example of how a typical Cryptocurrency network will work. The XCP token is itself a digital asset that can be used to facilitate secure transactions online, but is not itself a tradable asset. This makes the XCP relatively simple to transfer from one place to another, and prevents the custodian of the asset from being stuck holding the bag for the transfer. However, the XCP does not provide the means for secure instant transfers, and must be settled by either transferring funds directly or indirectly through a mixer service.
One major issue facing many Cryptocurrencies is the lack of a “real world” monetary backing. While nearly all of the existing Cryptocurrencies are derived from a mathematical protocol, no one knows the true implications until the technology is universally released. As of this writing, the Dashboard, which is used at the Confido Social Platform, is the only majorICO coin backed by a real world asset. As it stands, Dashboard is primarily used as a social platform, with the goal of facilitating instant transfer of funds between individuals in the system. This technology will soon be followed by a few other majorICO currencies, such as LTC, US dollar, and soon the Euro.
Unlike otherICO coins, which allow their holder free rein of the private key distribution process, mostICO coins require the holder to download a proprietary software before they can spend their funds. This ensures that only the correct person has access to the private key distribution list. This also means that there is no opportunity for a scam to take place as mostICO currencies are backed by actual cash. This also goes for otherICO currencies, since the Dashboard is designed to provide a way for the private key holder to monitor the funds they are sending.
One major advantage of using a cryptoledger as opposed to investing in and owning a traditionalICO currency is that Dashboard allows you to exchange your funds for almost any otherICO currency with just the click of a mouse button. With the Fiat Currency Backed Cryptocurrency, you have to first go through the hassle of opening an account and transferring funds into your chosen currency. With a cryptoledger you don’t even have to worry about any of those things. All you need to do is download the relevant software and you’re ready to go. You don’t even have to know if you want to go with Dashboard or anotherICO because almost all of them now offer both.