Released on - 7/15/2010 1:16:24 PM
Once upon a time, the rich carried gold coins around in velvet pouches. Those bulky, heavy coins were then replaced with lighter, paper money. Then, people attempted to replace paper currency with e-gold. Now, get ready to deal with e-cash!
What is e-cash?
A sizzling new concept of cash now exists in an electronic form. Users trade and transact with one another using e-cash. A decentralized system exists of this P2P (peer to peer) e-cash system in which no central server exists. There are no trusted organisations like banks and safe deposits, the whole system is open source and yet, people are increasingly switching over to the new P2P e-cash.
BitCoin P2P e-cash
Known as BitCoin, this system comprises value tokens which have distinctive features. For example, the tokens are unique, much like the paper money you carry in your wallet. P2P e-cash cannot be duplicated, as each token is an individual cryptographic digital entity. If you own the cryptographic key, then you can use the e-cash to transact and trade with other owners.
Already, over a dozen companies accept Bitcoin as a form of payment. For example, you can use BitCoins to pay "Link2VoIP.com" and you can make donations to The F.A. Hayek Institute of Canada, which also accepts BitCoins.
BitCoins Are Almost Fraud-Proof
Don't even think about e-thieves scamming the system just yet. There are checks and measures to ensure that they won't get away with it. For one, they cannot create multiple copies of your e-cash, and neither can you spend it more than once. All transactions that you enter into, no matter how small, are sent across a network that will immediately catch any duplicated spending of the same value tokens. A time-stamp stops any conflicts and each transaction is sent by your node to your P2P network.
If you think a communication failure might result in a scam, and that all of your valuable e-cash might disappear into a large, black e-hole, then there are precautions against that too. The system is supposed to be fraud-proof, and the longer the system is in use the more difficult it will become for an e-thief to manipulate it.
If you are bursting with questions, then you can get a few answers here: www.bitcoin.org/faq and you can buy BitCoins here: www.bitcoin.org/trade.
What is e-cash?
A sizzling new concept of cash now exists in an electronic form. Users trade and transact with one another using e-cash. A decentralized system exists of this P2P (peer to peer) e-cash system in which no central server exists. There are no trusted organisations like banks and safe deposits, the whole system is open source and yet, people are increasingly switching over to the new P2P e-cash.
BitCoin P2P e-cash
Known as BitCoin, this system comprises value tokens which have distinctive features. For example, the tokens are unique, much like the paper money you carry in your wallet. P2P e-cash cannot be duplicated, as each token is an individual cryptographic digital entity. If you own the cryptographic key, then you can use the e-cash to transact and trade with other owners.
Already, over a dozen companies accept Bitcoin as a form of payment. For example, you can use BitCoins to pay "Link2VoIP.com" and you can make donations to The F.A. Hayek Institute of Canada, which also accepts BitCoins.
BitCoins Are Almost Fraud-Proof
Don't even think about e-thieves scamming the system just yet. There are checks and measures to ensure that they won't get away with it. For one, they cannot create multiple copies of your e-cash, and neither can you spend it more than once. All transactions that you enter into, no matter how small, are sent across a network that will immediately catch any duplicated spending of the same value tokens. A time-stamp stops any conflicts and each transaction is sent by your node to your P2P network.
If you think a communication failure might result in a scam, and that all of your valuable e-cash might disappear into a large, black e-hole, then there are precautions against that too. The system is supposed to be fraud-proof, and the longer the system is in use the more difficult it will become for an e-thief to manipulate it.
If you are bursting with questions, then you can get a few answers here: www.bitcoin.org/faq and you can buy BitCoins here: www.bitcoin.org/trade.
No comments:
Post a Comment